SCOR Model

The below link is to a SCOR Model for an international smart phone company to help illustrate the complexities of supply chains and the methods used to overcome those obstacles.

SCOR Flow Chart


Production Costs

Production Costs

Ben Parker

Enterprise Accounting and Finance



Author’s Note:

Enterprise Accounting and Finance: Component 4: Phase 4

In any company it is important to figure out the selling cost before actually selling the product. This process can take place at the beginning, middle, or end of the product life cycle and it is important that a company always knows what goes into their product and how much they are selling it for. A company that has this knowledge will be price their products accurately, so they do not lose any money or price gouge a customer and drive them towards a competitor’s product.

In this case Specialty Tools is trying to secure business and is having to try to determine the selling price of their products to this customer. The sales manager has provided costs for both the A1 and B1 products and is asking that the prices be checked, so the company does not lose any money. Based on the information provided we can tell that the final cost of unit A1 after delivery and markup is $298.95 which is $36.05 lower than the suggested selling price of $335.00. Unit B1 is a different story as it has a selling cost after delivery and markup of $743.54 which is $18.54 higher than the suggested selling price of $725.00. This information shows what the actual target cost for products should be, A1 should be priced around $298.95 and B1 should be priced around $743.54 in order to meet the company’s normal markup and procedures.

The total product cost of each product based on the sales manager’s suggestion would be $8,877,500.00 for unit A1 and $13,412,500.00 for unit B1. These figures technically do not align with the company’s normal markups and procedures though, so to stay on track with normal procedures the total cost of units would need to be $7,922,175.00 for unit A1 and $13,755,433.75 for unit B1. The down side to this is that the company would actually be making less money than the sales manager’s suggestion since product A1 would no longer have a huge markup. This is a situation that would need to be carefully decided because it may be possible to obtain the order with the sales manager’s suggestion, but the other companies may put their costs on unit A1 more in line with the actual costs and cause Specialty Tools to miss out on the contract and revenue. If Specialty Tools decides to follow their normal procedures and markup than the customer would actually be paying less all together even though the per unit price of unit B1 is actually higher than the sales manager’s suggestion by $18.54 per unit. While Specialty Tools may be making less money this way over the sales manager’s suggestion, it would give the purchases a lower rate that may help to secure the business and still allow Specialty Tools to meet the normal markup price.

Based on the current market price Specialty Tools should go ahead and provide a quote to the customer. There is no point in producing this much product for an if and it would be a large if at that. A customer is always interested in price, but there are sometimes other motives that drives a customer to a different company. There could be brand loyalty, better products, or products that are better for that specific customer. Another possibility is that one of the other competitors underbid the project and actually ends up losing money or going out of business altogether. Even though Specialty Tools prices for unit A1 and B1 are very competitive with the average market price, it does not mean that Specialty Tools will get the job and therefore should wait before producing and losing $21,677,618.75 on a hunch.

The manufacturing data that was pulled to determine the selling price of unit A1 and unit B1 was based on the activity-based costing system. This can easily be recognized due to the breakdown of manufacturing, assembly, and machine hours. Activity-based costing is very important to have for any manufacture that produces more than one product as it provides more details about what actually goes into the product and what the cost should be. It will also help a company determine if there is a location that they can help try to save the company money (Bierman, 2010). If specialty tool was to use the conventional costing method than their prices per unit would be very different. The actually total selling price may not have changed; however, the price per unit would drastically change and could create confusion if the contract was secured and the product produced because one of the products would show losing money. The reason for this difference is because activity-based costing looks at all the details and costs of a production while conventional costing looks at the overall process and costs (Periasamy, 2010). For example, in the case of Specialty Tools instead of seeing that 6.8 machine hours went into unit A1 and 28.4 hours went into the making of unit B1 based on the activity-based costing system, we would only see that 35.2 machine hours went into the making of the products. This leads to a huge problem because Specialty Tools may know the total number of hours and the cost of each of those hours, but they do not know where those hours belong and cannot assign the machine hours appropriately to the correct unit. By not knowing which unit these hours belong to Specialty Tools will end up increasing the price of unit A1 as it does not have that many hours into it and lowering the price of unit B1 as it has majority of the machine hours in its production.

Many people have a tough time seeing the difference between activity-based costing and conventional costing because they are not familiar with the manufacturing world and get confused or scared at its mention, but activity-based costing is a very simple concept. The best way that this can be explained it to take a look at a bakery. That doughnut that is mass-produced in the morning may take ten minutes to prepare while that five tier wedding cake may take eight hours to prepare. If the bakery was to follow conventional costing methods than that doughnut may share some of the cost for that wedding cake and become very expensive. This concept is no different in the manufacturing world. A company needs to know what and how much time is going into the different products, so the company can accurately price them to avoid losing money or gouging the customer (Velmurugan, 2010).

Below is the link to the formulas and figures used to determine this information.

Accounting Final Formulas


Bierman, H. (2010). Introduction to Accounting and Managerial Finance: A Merger of Equals. Retrieved from

Periasamy, P. (2010). Textbook of Financial Cost and Management Accounting. Retrieved from

Velmurugan, M. (2010). The Success and Failure of Activity-Based Costing Systems. Retrieved from

Budgeted Income Statement

Budgeted Income Statement Revised Excel Spreadsheet

Budgeted Income Statement

Ben Parker

Resource and Risk Management

Author’s Note:

Resource and Risk Management: Component 4: Phase 4

  1. Does the budgeted income statement indicate any changes in Gross Profits for 2013.  If so, how much change (+/-), and why?

The Gross Profits will change between 2012 and 2013. Gross Profits in 2013 will be down by $4,400 because of the expected increase in raw materials that the VP of Purchasing has predicted.

  1. Does the budgeted income statement indicate any changes in Net Operating Income for 2013?  If so, how much change (+/-), and why?

The Net Operating Income will change between 2012 and 2013. The Net Operating Income for 2013 will have increased by $5,600 due to the decrease of Depreciation Expenses.

  1. Does the budgeted income statement indicate any changes in Net Income (Earnings after Taxes, EAT) for 2013?  If so, how much change (+/-), and why?

The Net Income will have changed between 2012 and 2013. The Net Income in 2013 will have risen by $4,200. This decrease is due to the reduction of Deferred Taxes that will be paid.

  1. What are the Earnings per Share in the 2013 budgeted income statement?  How much did they change (+/-) from 2012, and why?

The Earnings per Share for 2013 are $3.35 per share. This figure is up by $0.04 per 100,000 shares outstanding, so an increase of $4,000. This increase is based on the decrease of expenses and the expected decrease in dividends that will be paid.

  1. What are the Retained Earnings in the 2013 budgeted income statement?  How much did they change (+/-) from 2012, and why?

The Retained Earnings for 2013 are expected to be $235,300. This is an increase of $15,300 from the Retained Earnings in 2012 because of the reduction in dividends and taxes paid out in 2013.

  1. Name at least three external factors that should be considered when preparing a budgeting or forecasting document.  Explain why their consideration is important.

There are many factors that should be considered when planning a budget or trying to forecast. If these factors are ignored than it could very easily make your budget or forecast inaccurate and lead to the company losing a large sum of money. When I think of external factors that will or could affect the budget or forecast, I think of competitors, suppliers, and customer demand. These are very large areas to look at and can and will change drastically, but with proper planning the impacts of this can be reduced.

The competitors of any business should always be considered when talking about a budget or forecast because if anyone is going to impact your sales, it will be the competition (CPAaustralia, 2010). If you know that the competition is going to release a new item that is similar to your own item, lower their prices, or go out of business than your company can prepare to lower prices to keep sales up or expect a higher unit of sales than normal. At this point a company can decide to increase profits or reduce profits and with that the amount of supplies or materials that they will order as well to help cut expenses.

Suppliers of any company can easily impact the budget and forecast for any company; after all, it is rather difficult to sell product when your company doesn’t have any on the shelf (Tennent, 2008). Hopefully the supplier and the company are on good terms and will communicate about expectations, so both can predict the budget and forecast. If communication of expectations are not than a company could be faced with a large dilemma when the supplier goes out of business or is having maintenance and your company is unable to get any supplies or materials to sell.

Customer demand is one of those aspects of forecasting and budgeting that is difficult to figure out because all people change and so will their needs and wants (Oster, 2015). Customer demand can be effected by laws, market health, or social trends. A good example of this is if a law is passed raising wages for the workers of a state then that state may have to raise gas prices to pay for that increase in wages and therefore people may not drive as much or drive more fuel efficient vehicles. We have all seen the impact that this had on the truck and diesel market for manufactures that saw record losses. Social trends like eating healthier can also impact companies as they will now have to invest additional money into making healthier foods and recipes to help sell their products over the competitors.

While it is very difficult for a person to look at and try to figure out what factors could and will impact a company, it is very important that the appropriate amount of time is taken and each factor is researched fully. Any factor that sees a change has a high chance of influencing your company and that influence can be massive at times and the only way to help reduce that impact or turn it in your favor is to do research. With the research a company can create budgets and forecasts that will help to set a plan for the company and its revenues to help ensure the company does the best that it can with the current factors.


CPAaustralia. (2010). Malcolm Simister on budgets, forecasts and relative targets. Retrieved from

Oster, K. (2015). External Environmental Factors that Affect Staffing Forecasts. Retrieved from

Tennent, J. (2008). Guide to Financial Management. Retrieved from

Global Strategic Planning

Global Strategic Planning

Ben Parker

Managing the Global Enterprise

Author’s Note:

Managing the Global Enterprise: Component 4: Phase 3

There are a plethora of reasons that a company should be familiar with the global economy and if that company is thinking about expanding outside of its country; it should make sure to have a globalization strategy ready and understood. This is no different for any company including Lottafizz Corp. The thing that is different for each company is devising that globalization strategy. While this may not seem like much of a task for a company that is already doing very well in its own market, it is actually quite a challenge and if not done properly and with a good amount of research the foreign expansion could very well fail and cost the company thousands if not millions of dollars. This can be seen in both eBay’s and Best Buy’s try at globalization that failed within a few years of launch due to the lack of research (International Business Guide. 2013).

In order to create and establish a good globalization strategy, a company must be able to look at several aspects of their company and the economy. The aspect that most people get confused on is the ability to look at your business and see how it needs to be different per each region or country, but also learn to look at your business as one operation and not several different, unrelated parts of the company. What people get confused about is that the company needs to know how their products in different countries or regions are different, but still realize that the products are all from the same base brand.

Another factor that most people overlook is the ability to differentiate between the different sides or markets of “globalization”. A company has several different actual strategies to expand “globally” into foreign markets. These are the international strategy that is expanding into a foreign market that is essentially the same as the home country. The multinational strategy is for several foreign markets that need or use a slightly different variation of the same product. Then there is the true actual global strategy that is a company that has products in almost all markets and all the products are essentially the same with very few alterations to the products (Richard Lynch. 2014).

Once the company has decided how they want to enter a market, with what products, and the knowledge of how transportation will happen; the company will need to establish its brand name (Business Case Studies. 2014). The goal of your company and every other company is to establish a powerful brand name that the world knows. That is why so many actors or artists have changed their names to something that is catchier so that it sticks with people and everyone will recognize and know their names (Marianne Bickle. 2011). That is why a company needs to treat even their slightly different offshore and international products as the same brand. This treatment will help to create an even more powerful brand name that everyone will know.

Globalization can provide a company with a huge reward that can include not only money, but reputation, new knowledge, and new ideas. The new knowledge and ideas will help to let your business not only better their current products, but also create a new line of product or services. The gained reputation will create a stronger loyalty towards your brand and help further the brand’s sales. On the opposite side of the spectrum a company could also be looking at several costs. There is naturally the cost of implementing the strategy that includes transportation, building facilities, producing new or altered products, and marketing; however, there are also potential costs that can occur if the global strategy is not fully thought out. If the company was to fail it could not only have to eat the entire costs of trying to enter the new market, but it could also deal with the loss of reputation or upsetting of a country or region. This could be done as easily as trying to sell alcohol in a country that does not drink and find it offensive. In Afghanistan it is actually illegal for spirits to be purchased and Brunei has been known to flog people that were caught drinking (The Daily Meal. 2014). Once a company has received a bad reputation in a region; it has a very little chance of getting back into that market and if it does it will struggle trying to get a foothold within the market.

Companies will have a challenge learning to balance their local home country’s product with the foreign markets. To balance the product or service it is important that the company keep the true nature and purpose of the product, while altering it to fit the need of the host country. This change has been done countless times like when fast food corporations change their menus by removing pork as it is offensive to the people or soda companies changing their flavors to better suit the host countries tastes (Cezary Jan Strusiewicz. 2009). Lottafizz’s value proposition will need to be adapted to the foreign markets if they are any sort of different from the host country in order to balance their original product with the foreign market’s needs and desires. Equipment, packaging, containers, licenses, and marketing will all need to updated to help better sell the product or service in the foreign market (Bellevue Library Catalog. 2010).

In order for Lottafizz to flourish in one or several new markets, I would suggest the international strategy that way not a lot of the product will actually have to be changed. Markets like Europe and Latin America will have some slight differences, but are very similar to the American market. Also, as far as soda drinking goes the Latin America and Europe markets are right behind the United States, so we can be sure that there is the want of soda in those areas unlike countries like India and Indonesia that drink less than one percent compared to Americans (Check. D, Dodson. M, Kirk. C. 2012). The company can also look at entering the Caribbean, Europe, and Canadian market with their spirits as both of these locations consume more spirits per person then Americans (World Health Organization. 2014). This will not only allow your company to enter these foreign markets without having to invest an enormous amount of money into producing new products, but will allow you to build your brand into something that more and more people know and want. Once Lottafizz’s reputation has grown and profits have added additional money, I would then suggest looking at a multinational strategy to help gain access and sales into the other foreign markets. Markets like Japan and India would need to be carefully researched as lifestyles and tastes are extremely different from most Americans. Fruity flavored sodas are common in Japan, but there are also flavors that include chili, ginseng, and teriyaki (Asian Food Grocer. 2014). India on the other hand look for more sodas that are actually spiced like cumin (YCharts. 2014).

The most important thing to remember is that almost every region and country has something that sets it apart. This can range from taste, lifestyle, and desire for a product, so it is very wise to be cautious when entering a market and do the research to know what you are entering and what that consumer base wants. As this will be Lottafizz’s first foreign move it will be important to find countries and markets that are similar to America’s to help reduce the risk of failure. If a company does not recognize the above reasons and their importance to entering foreign markets; there is a very good chance that the launch will fail and that company will be out millions if not more.


Asian Food Grocer. Ramune Soda. 2014. Retrieved from

Bellevue Library Catalog. Globalizing the Value Proposition. (2010). Retrieved from

Business Case Studies. Strategy theory. 2014 Retrieved from

Cezary Jan Strusiewicz. Yogurt Pepsi: 14 Horrifying Soft Drinks Around the World. 2009. Retrieved from

Check. D, Dodson. M, Kirk. C. Americans Drink More Soda Than Anyone Else. 2012. Retrieved from

International Business Guide. 10 Successful American Businesses That Have Failed Overseas. 2013. Retrieved from

Marianne Bickle. The Power of a Name: Branding Your Company for the Future. 2011. Retrieved from

Richard Lynch. What is global strategy? And why is it important? 2014. Retrieved from

The Daily Meal. Countries where alcohol is illegal. 2014. Retrieved from

World Health Organization. Global status report on alcohol and health 2014. 2014. Retrieved from

YCharts. Coke Wants to Double Revenues, Will Cumin-Flavored Soda Help? 2014. Retrieved from

Social Computing Plan

Ben Parker

Social Computing




Author’s Note:

Social Computing: Component 4: Phase 3


Regardless of what company you are there is always a need for social networking and computing. The need may be an internal or external need and depending on if it is either internal or external; the company will need to formulate a social computing plan to best address the issues for what side of the company is being looked at. It is vital with any plan that a true vision or plan is alive and that there is a plan to reach that (Jim Dougherty. 2012). If there is no vision or plan then a site will be created and more than likely it will sit there dormant and be a waste of someone’s time.

For our Organization A, who is a national nonprofit food bank providing assistance to underprivileged families, there are three main goals that we wish to not only meet, but raise to a level beyond that. These goals are to create a better turn out to the events and therefore assistance provided, gather more partners or donators to help provide more, and to better establish training and connection between the branches. The issue for these goals is not reaching them as they are a greatly needed service; it is establishing a plan to help meet those goals. In order to meet and surpass the goals a plan or course of action must be developed for each of the different goals, it cannot be looked at as one task or venture. Now with that being said it is also important to remember that even those these need to be looked at largely as separate as well as the network being used, the goals can help each other succeed and reach their goal (Radian6. 2010).

The first goal of creating a better turn out is to realize that this type of communication will be an external communication and from that point to establish the network/s that will have the most influence or target market. As with many sites and companies in today’s world the best sites to help achieve this are Facebook and Twitter. Facebook alone had 1.35 million users in September 2014 alone (Facebook Newsroom). This large of an audience will help for the organizations message be sent out easily and be seen by many. Naturally the post itself will have to be tailored to best achieve the goal. This could include posting a calendar of events, pictures, how to instructions or videos, and directions to the events. One potential issue that may be overlooked by many is the number of accounts or profiles that we should have since we are both a national and local organization. To best meet our clients’ needs and prevent people from scrolling and reading through 300 plus potential posts from different agencies; we should have a team member over each region to better assist and provided needed information to the area.

The next goal is to increase the number or partners and donators for our organization and therefore the people in need. This type of communication is an external communication and we can use many of the same sites as we would trying to get more people to attend. The difference is that the content of the posts would need to change or individual messages would need to be sent out to the partners in some cases. On top of using Facebook and Twitter the organization could also use LinkedIn to help find potential partners or people willing to donate or volunteer. The best part about doing this via social networks is that it helps out all parties in the action. We will get additional support, the families will get better or more assistance, and the businesses will be seen as donating and get essentially free advertisement. Many businesses who donate are favored by their locals and will in return gain loyalty. The only issue for this course of action is that it may be difficult to sort out who has or hasn’t been contacted for assistance, but this can easily be avoided by having a team member over the task. This could be same member over the site itself as mentioned above or someone else whose task is only to monitor sent messages.

The last area that we have a goal to reach is our internal messaging and training program. As we are a national organization it can become very difficult to communicate at times efficiently and therefore hard to train our workers. By using internal networking tools such as Outlook with Microsoft Lync a company can not only quickly send a message to their works, but also to all of them at once. The company can use sites like YouTube to provide training videos or how to videos for employees or even volunteers. The organization could even create an internal blog that people can post issues or questions to receive help back from. The main aspect that will help this and the other goals be realized is by having a team established and policy written. This will keep anyone’s toes from being stepped on and allow a chain of command in case there ever is an issue.

While all these goals are separate, it is important to keep in mind that when one succeeds, they will all get closer to reaching their goals. Now that is something that also needs to be discussed and that is how to measure our performance. This task may seem daunting, but is not anything that will consume more than an additional hour of time per location per event. We can easily monitor the performance of the above goals by counting people and supplies. It is already part of our protocol to do inventory counts, so we will know if we are getting more product and therefore more donators or partners. We also have to keep track of the number of people who come in, so we can easily tell if our attendance is going up. On top of both of these simple methods we could also enlist a social media tracker to see how much more activity our posts are drumming up. This can be seen through sites such as Hootsuite, TweetReach, and Icerocket (Pam Dyer. 2013). As you can see we have many goals to obtain and will require good training and monitoring to pull off, but once these goals are achieved our organization will be bigger than ever and have a much greater impact on the communities and making our regions and their occupants’ lives better.






Facebook Newsroom. Company Info. 2014. Retrieved from

Jim Dougherty. A Powerful B2B Social Media Case Study. 2012. Retrieved from

Pam Dyer. 50 Top Tools for Social Media Monitoring, Analytics, and Management. 2013. Retrieved from

Radian6. Social Media and the Big Picture. 2010. Retrieved from

Six Sigma

This scenario is one that could have several different factors that can be adjusted to help prevent or create certain outcomes. For that reason it is important to look at the possible factors or methods to resolve the problem and see what will work best for the company. In this scenario the company has implemented a new strategy to help on the return on investment (ROI), but in the process has made the production process slow and filled with errors. We know that the issue is not having the resources in a timely manner and that is delaying the production, so if we look at possibilities of change in the process we can find a way to help resolve this delay. Naturally things like training or improved shipping from the supplier would affect this as well, but for this scenario we will say that those are optimal to this case.

The Prioritization Matrix is very helpful to determine what is important and what solution shows to have the best rating to achieve a desired outcome (Donelam. K & Dowling. M.). The company is trying to increase the ROI and for that reason I have included three cost categories as these will naturally effect the ROI. The most important things in this prioritization are the defects made and the salvage cost as both will strongly impact the company between scrapping products that made no revenue and losing business with unhappy customers. Based on the proposed plans it is determined that if the Just in Time approach was utilized while increasing workers it would provide the best outcome for the company. To best illustrate this I have created a very basic flow chart or Process Decision Program Chart. This chart outlines the steps in a process much like a flowchart, but it also includes the issue or issues and the step taken to avoid that problem (Nancy Tague. 2004). While it is in no way shape or form the only way that this chart could have turned out, it is this way because I based it on the best outcome that I got from doing the prioritization matrix and seeing what option had the lowest score in this case that is the best outcome.


Charts are attached below.

Six Sigma






Donelam. K & Dowling. M. Quality Management & Planning. Retrieved from

Nancy Tague. The Quality Tool Box. 2004. Retrieved from