Case Study Analysis

2437 words - 10 pages

ACCT1014 Accounting, Behaviour & Orgs
Case Study Analysis

Student name: Zheyi Xie
Student ID: S3308285
Lecture’s Name: Dr. Susan Robertson

Table of Contain
Business Strategy in DCB3
Key Success Factors of DCB4
Purpose of a Management accounting system and its benefits to DCB5
To provide information for costing 5
To provide information for planning, control and evaluation 5
To provide information for decision making5
Importance of Business Strategy to Management Accounting System6
Key Problems faced by DCB6
Identification of accounting technique7
Conclusion and Recommendation8
References list9

...view middle of the document...

This increased the dissatisfaction among the sales managers and they even thought of leaving the job. Another major issue of DCB store is the huge inventory. Dylan relied on only a single supplier from long time, Grantham who delivers quality parts. However, Grantham cannot deliver in short notice. This increased the amount of inventory causing most of his capital is blocked in the inventory. While considering the three stores, the demand for bicycles in Geelong and Black Rock stores were not high as Doncaster as the locations of these two were not that ideal and stores are opened not for long time.
Business Strategy in DCB
Dylan’s DCB had no cut throat regulations and policies which is required for any business for its success. The only mission of Dylan in running his business is to deliver customized bicycles which will be assembled as per the requirements of the customers. He also wanted to deliver high quality bicycles. Dylan was the only person who was completely in charge of the business from dealing the customers, supervising the four sales staffs. He used to travel extensively between his stores for managing them and this made him completely exhausted. Using this business strategy, Dylan wanted to reduce the costs related to employing more people. He also wanted to maintain quality in delivering the bicycles.
Key Success Factors of DCB
One of the key success formulas of DCB is that he sold custom made bicycles as per the requirements of the customers. Each bicycle was assembled as per the specifications of the bicycle enthusiasts, with appropriate sizing and gears etc. There has been an increase in the demand for his bicycles due to this factor. This made Dylan to open two more stores in other areas like Geelong, a city in south-west Melbourne and Black rock, a suburb in Melbourne. However, the stores were approximately 1½ hour and 2½ hour drive respectively from his Don caster store. Dylan was always been the face of his stores. He looked after the customer queries in all the stores. This made more customers relying on his stores. He managed his four sales executives all lone, as a result of this there more efficiency and high productivity among the sales executives. He was very customer friendly and always believed in making the customers happy. Once the bicycle is sole, he calls the customer and ensure whether they are satisfied with the bicycle. His this way of dealing the customer with such a good after sales service is one of the key success of the business which makes DCB stands out among the competitors. Most of the DCB sales have come from the word of mouth rather than any structured marketing technique. This is simply because the customers are happy with his service and they spread the goodwill of his store to all others (Baldvinsdottir et al., 2010).

It is to be noted that in the case of Dylan’s bicycle business, more success can be ensured using a good management accounting system in all his stores. This system...

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