...1. What are the strengths and weaknesses of the target costing system? First, target costing originally starts with mangers estimate the cost that customers are willing to pay and how competitor will price the same products or services. (Cost Accounting. Page 545). In the Nissan case, customers are very knowledgeable because the customer demand requires more variations and model types of automobiles. This is a favorable market for Nissan. Nissan managers can set an expected profit margin because the customers has a very high demand of automobiles and they know the automobiles market very well. Second, target costing for a product includes direct manufacturing costs direct materials, direct manufacturing labor, and direct machining costs. (Cost Accounting. Page 519). Analyzing each cost element and eliminate the unnecessary value-added is one of the cost management goals in the target costing system. In order to have a competitive price, Nissan managers have to eliminate some value-added costs which are unnecessary and not so helpful for the automobile manufacturing and selling process. Target costing can shorten the product lives and save Nissan company time to do marketing and financial management. A good example in the Nissan case it that they eliminated the "five-door variant" because it is unnecessary. Last, target costing system helps Nissan build a cross-functional team. The design department, manufacturing department, sales department and management department work...
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...| Nissan Motor Company | Revival Plan Review | | ) | | In 1987 Japan’s economic expansion was driven by the inflation of stock prices and real estate values. As consumer confidence increased, so did the population’s appetite for luxury goods. In response to this national trend in consumer spending, Nissan Motor Company (Nissan) launched an aggressive expansion plan to meet the demands of the marketplace. The organization invested heavily in new manufacturing facilities and upgraded their distribution network. Nissan’s debt grew from $11.8B to $32.7B. Japan’s bubble economy collapsed in the early 1990s and Nissan’s profits deteriorated in parallel (Wiki – 2011). In response to a dire operating situation, Nissan formed a partnership with Renault in 1999. While the injection of capital was much needed by the Japanese car manufacturer, the most important asset exchanged in the strategic alliance turned out to be Carlos Ghosn, the Renault Executive Vice President appointed to turn around Nissan. The following analysis focuses on Carlos Ghosn’s leadership and the Nissan Revival Plan (NRP). The NRP saved Nissan and its roots seem to have originated from the Lean Action Plan framework. Get Started (First Six Months) Find a change agent (Score - 5 of 5) The Lean Thinking textbook places a considerable amount of emphasis on starting the Lean Leap. While it may seem basic in nature, kicking off the process is not easy, and it requires an organization to have an executive...
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...20 PROFESSOR: SALVADOR CARMONA □ Ph.D (Accounting). Universidad de Sevilla. □ Last version, November 2006 COURSE DESCRIPTION A cost accounting system collects and classifies costs and assigns them to cost objects. The goal of a cost accounting system is to measure the cost of designing, developing, producing (or purchasing), selling, distributing, and servicing particular products or services. Cost allocation is at the heart of most accounting systems. Cost behavior -how the activities of an organization affect its costs- is also fundamental to cost accounting systems. The data provided by a cost accounting system is used for various purposes, which include product costing, planning and control, and decision making. This course mainly focuses on the first of these objectives -products costing. COURSE GOALS Students, as future managers, will utilize, at a minimum, the output of cost systems, which are the primary internal information systems in a firm. Students taking this course will gain an understanding of cost accounting systems, which includes a familiarization with: The goals of cost accounting systems; the fundamental features and design of cost accounting systems; and the various uses of the data provided by cost accounting decisions. A sound understanding of these issues is necessary to interpret cost accounting system outputs; to transform them from data to information and knowledge. Without this understanding, cost accounting data is often mis-interpreted...
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...in Stuttgart. The brand is often used for building luxury automobiles, buses, coaches, and trucks, widely known as one of the most established and oldest automotive brand in the world today. 2.1 Cost Management Techniques Adopted by Mercedes Benz 2.1.1 Target Costing Target costing prices are assumed to be set by the market on a competitive basis. In a market economy, values are defined by the users. As Mercedes move closer toward a global economy, prices increasingly become uncontrollable variables, while costs, because of technological advances, increasingly become controllable variables. When selling price and profit margin are fixed by competitive pressures and management policies, respectively, reducing the firm’s production costs may be the only source of increased earnings. Mercedes Benz, one of the worlds most prestigious and tradition laden car makers, has taken its time to wake up to the daunting dimensions of the challenges it faces in the rapidly changing world car market of the 1990’s. Instead of developing the ultimate car based on an image of effortless superiority and then charging a correspondingly sky high price as in the past, Mercedes Benz is taking the dramatic and radical step of moving to target pricing. (Financial Times, 2009) It will then decide what customer is willing to pay in a particular product category – priced against its...
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...Harvard Business School Publishing Case Map for Horngren, Foster & Datar: Cost Accounting: A Managerial Emphasis, 10th Edition (Prentice Hall) This map was prepared by an experienced editor at HBS Publishing, not by a teaching professor. Faculty at Harvard Business School were not involved in analyzing the textbook or selecting the cases and articles. Every case map provides only a partial list of relevant items from HBS Publishing. To explore alternatives, or for more information on the cases listed below, visit: www.hbsp.harvard.edu/educators Case Title Institution, HBSP Product Number, Length, Teaching Note Geographical and Industry Setting, Company Size, Time Frame Abstract, Key Subjects PART ONE: COST ACCOUNTING FUNDAMENTALS Chapter 1: The Accountant’s Role in the Organization Chapter 2: An Introduction to Cost Terms and Purposes Carver HBSP United States, Consulting Co. #199006 consulting, 10,000 7p employees, 1994 Daniel Dobbins Distillery, Inc. HBSP #189065 7p TN #189172 Tennessee, liquor distillery, 1988 The managing partner of a relatively new consulting firm is concerned because training costs at the firm's new training center are higher than expected. Analysis of actual costs compared to those expected is required. In addition, he is considering capitalizing some training costs for later amortization. A management control system for the center is also a priority. A distiller increases whiskey production and income declines because of accounting...
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...Lean Supply Chain Management Principles and Practices Professor Deborah Nightingale October 3, 2005 Lean Supply Chain Management Learning Points • Lean supply chain management represents a new way of thinking about supplier networks • Lean principles require cooperative supplier relationships while balancing cooperation and competition • Cooperation involves a spectrum of collaborative relationships & coordination mechanisms • Supplier partnerships & strategic alliances represent a key feature of lean supply chain management ESD.61J / 16.852J: Integrating the Lean Enterprise Page 2 © Deborah Nightingale, 2005 Massachusetts Institute of Technology Theory: Lean Represents a “Hybrid” Approach to Organizing Interfirm Relationships • “Markets” (Armʼs Length): Lower production costs, higher coordination costs • • • Firm buys (all) inputs from outside specialized suppliers Inputs are highly standardized; no transaction-specific assets Prices serve as sole coordination mechanism • “Hierarchies” (Vertical Integration): Higher production costs, lower coordination costs • • Firm produces required inputs in-house (in the extreme, all inputs) Inputs are highly customized, involve high transaction costs or dedicated investments, and require close coordination • “Lean” (Hybrid): Lowest production and coordination costs; economically most efficient choice-- new model • • • Firm buys both customized...
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...A COMPARATIVE STUDY OF STANDARD COSTING SYSTEMS OF TWO COMPANIES CERTIFICATE FROM THE ORGANISATION TABLE OF CONTENTS Sr. No. | Chapter Name | Page No. | 1. | Acknowledgement | 5 | 2. | Preface | 6 | 3. | Objective and Introduction | 7 | 4. | A Brief about the two Companies | 8 | 5. | Standard Costing System | 12 | 6. | Findings | 15 | 7. | Conclusion | 17 | ACKNOWLEDGEMENT We owe much gratitude to all the people who have helped and supported us during the conduct of this project. Our sincere thanks to our Professor Prof. L.N. CHOPDE for giving us the opportunity of practically studying standard costing systems of organizations with the help of this project. He has been a perfect guide through all the lectures and has helped a lot throughout the preparation of the project. Our deep sense of gratefulness to Mr. Anil Rasal for his support and guidance. Thank and appreciation to the staff of both the banks for their support too. We would also like to thank the institution – M.E.T. College and the faculty members without whom this project would have been a distant reality. PREFACE Comparative Study of Accounting System of Gunnebo India Pvt. Ltd and Ashok Leyland Ltd.: As part of the project we have studied the standard costing systems and the general accounting related to it followed by Gunnebo India Pvt. Ltd and Ashok Leyland Ltd. As per the guidelines given for the project we have taken the two companies. Both are manufacturing...
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...Supplier Development at Honda, Nissan and Toyota: Comparative Case Studies of Organizational Capability Enhancement* Mari Sako Professor of Management Studies Said Business School University of Oxford Park End Street Oxford OX1 1HP, UK Email mari.sako@sbs.ox.ac.uk October 2002 * This study was funded by the International Motor Vehicle Program (IMVP), the UK Economic and Social Research Council, and the Japan Foundation. I am grateful to the interviewees at the three automakers and suppliers who gave generously of their time. I also appreciate the comments of many colleagues, and in particular those of Bill Lazonick. Abstract What factors facilitate and constrain the development and replication of organizational capabilities at suppliers? This question is addressed in a comparison of historical case studies at Toyota, Nissan and Honda in Japan. First, as expected, replication difficulty is overcome by enabling companies to share the process of accumulating tacit knowledge. Second, the interdependence in the hierarchy of routines, that constitute organizational capabilities, has led companies to broaden the scope of supplier development. Third, this broadening challenges suppliers to accept buyer companies’ intervention in internal investment decisions, requiring a certain type of corporate governance. It is argued that the boundary of a capability-based organization may go beyond legally distinct units of financial control when firms are subjected to a cumulative process...
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...Case Study 2: Types and Patterns of Innovation Honda and Hybrid, Electric Vehicles Honda was founded in Hamamatsu, Japan, by Soichiro Honda in 1946 as the Honda Technical Research Institute. The company began as a developer of engines for bicycles, but by 1949 it had produced its first motorcycle, called the Dream. In 1959, Honda entered the U.S. automobile and motorcycle market by opening the American Honda Motor Company. A few years later, in 1963, Honda released its first sports car, the S500, in Japan. Honda Motor Co. Inc. grew rapidly to become one of the largest automobile companies in the world. Its "glocalisation" strategy of building factories around the world that would meet the needs of local customers had resulted in a total worldwide presence of more than 100 factories in 33 countries. Furthermore, while other auto manufacturers engaged in a frenzy of merger and acquisition activities in the late 1990s, Honda steadfastly maintained its independence. Honda has grown into one of the world's largest automobile manufacturers and has also evolved into one of the most respected global brands. In 1997, Honda Motor Company introduced to Japan a two-door gas/electric hybrid vehicle called the Insight. The Insight's fuel efficiency was rated at 61 miles per gallon in the city, and 68 miles per gallon on the highway, and its battery did not need to be plugged into an electrical outlet for recharging. By 1999, Honda was selling the Insight in the United States, and winning...
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...Case Study 2: Types and Patterns of Innovation Honda and Hybrid, Electric Vehicles Honda was founded in Hamamatsu, Japan, by Soichiro Honda in 1946 as the Honda Technical Research Institute. The company began as a developer of engines for bicycles, but by 1949 it had produced its first motorcycle, called the Dream. In 1959, Honda entered the U.S. automobile and motorcycle market by opening the American Honda Motor Company. A few years later, in 1963, Honda released its first sports car, the S500, in Japan. Honda Motor Co. Inc. grew rapidly to become one of the largest automobile companies in the world. Its "glocalisation" strategy of building factories around the world that would meet the needs of local customers had resulted in a total worldwide presence of more than 100 factories in 33 countries. Furthermore, while other auto manufacturers engaged in a frenzy of merger and acquisition activities in the late 1990s, Honda steadfastly maintained its independence. Honda has grown into one of the world's largest automobile manufacturers and has also evolved into one of the most respected global brands. In 1997, Honda Motor Company introduced to Japan a two-door gas/electric hybrid vehicle called the Insight. The Insight's fuel efficiency was rated at 61 miles per gallon in the city, and 68 miles per gallon on the highway, and its battery did not need to be plugged into an electrical outlet for recharging. By 1999, Honda was selling the Insight in the United States...
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...Towards a conceptual framework for strategic cost management - The concept, objectives, and instruments - Von der Fakultät für Wirtschaftswissenschaften der Technischen Universität Chemnitz genehmigte Dissertation zur Erlangung des akademischen Grades Doctor rerum politicarum (Dr. rer. pol.) vorgelegt von Ibrahim Abd El Mageed Ali El Kelety geboren am 11.01.1965 in El Menoufia - Ägypten eingereicht am: 14. Juni 2006 Gutachter: Prof. Dr. Uwe Götze Prof. Dr. Dr. h.c. Jürgen Bloech Prof. Dr. Peter Schuster Tag der mündlichen Prüfung: 18. Juli 2006 Acknowledgement To the Almighty God “ALLAH” Who have granted me all these graces to fulfill this work and Who supported me in all my life. To Him I extend my heartfelt thanks. It is a pleasure to express my sincere and deepest heartfelt gratitude to my “Doktorvater“ Prof. Dr. Uwe Götze for his kind supervision, continuous encouragement, valuable enthusiastic discussion and unfailing advice throughout the present work, as well as financial support during my latest period of study in Germany. He assisted in all matters, provided solutions to different problems. Prof. Dr. Uwe Götze supported and helped me during my learning period in Germany and writing this thesis. I am very lucky being one of his students. I would like to express my deep thanks to Prof. Dr. Dr. h.c. Jürgen Bloech - Georg-August University of Göttingen - for his kind acceptance to act as an examiner. I would also like to express my sincere thanks to Prof. Dr. Peter...
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...Case Study 2: Types and Patterns of Innovation Honda and Hybrid, Electric Vehicles Honda was founded in Hamamatsu, Japan, by Soichiro Honda in 1946 as the Honda Technical Research Institute. The company began as a developer of engines for bicycles, but by 1949 it had produced its first motorcycle, called the Dream. In 1959, Honda entered the U.S. automobile and motorcycle market by opening the American Honda Motor Company. A few years later, in 1963, Honda released its first sports car, the S500, in Japan. Honda Motor Co. Inc. grew rapidly to become one of the largest automobile companies in the world. Its "glocalisation" strategy of building factories around the world that would meet the needs of local customers had resulted in a total worldwide presence of more than 100 factories in 33 countries. Furthermore, while other auto manufacturers engaged in a frenzy of merger and acquisition activities in the late 1990s, Honda steadfastly maintained its independence. Honda has grown into one of the world's largest automobile manufacturers and has also evolved into one of the most respected global brands. In 1997, Honda Motor Company introduced to Japan a two-door gas/electric hybrid vehicle called the Insight. The Insight's fuel efficiency was rated at 61 miles per gallon in the city, and 68 miles per gallon on the highway, and its battery did not need to be plugged into an electrical outlet for recharging. By 1999, Honda was selling the Insight in the United States, and winning accolades...
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...the “Roadster” the first completely electric car. This car was able to achieve up to 245 miles (394 km) on a single battery charge. This was a huge land mark for the electric car’s feasibility in such a competitive and stagnant Automotive Market. With an acceleration of 0-60 miles (94km) in less than 4 seconds and a top speed of 125 miles (200km) this car proved to be competitive in the sports car category. (Schreiber, 2014) Products and Service Currently in 2014 the only tesla car for sale is the Model S and the Roadster. The zero emission car which costs varies depending upon the Battery size and performance of the engine. The Model S 60kWh is the bench mark of the Model S range costing $101, 408 in NSW. The Model S 85Kwh which costs $117,788 in NSW and the Model S 85kWh Performance costing $140,310 in NSW. (Simpson, 2014) Tesla is also currently offering free charging to...
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...Marketing Project Table of Contents 1.0 Executive Summary ...................................................................................................................................... 2 2.0 Situation Analysis .......................................................................................................................................... 3 2.1 Market Summary ....................................................................................................................................... 4 2.1.1 Market Demographics ......................................................................................................................... 7 2.1.2 Market Needs ....................................................................................................................................... 12 2.1.3 Market Trends...................................................................................................................................... 13 2.1.4 Market Growth ..................................................................................................................................... 16 2.2 Competition .............................................................................................................................................. 18 2.3 SWOT Analysis ............................................................................................................................................. 23 2.3.1 Strengths ....................
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...i n t e r n a t i o n a l j o u r n a l o f h y d r o g e n e n e r g y 4 0 ( 2 0 1 5 ) 1 6 2 5 e1 6 3 8 Available online at www.sciencedirect.com ScienceDirect journal homepage: www.elsevier.com/locate/he Changing the fate of Fuel Cell Vehicles: Can lessons be learnt from Tesla Motors? Scott Hardman a,*, Eric Shiu b, Robert Steinberger-Wilckens a Centre for Hydrogen and Fuel Cell Research, School of Chemical Engineering, University of Birmingham, Birmingham, B15 2TT, UK b Birmingham Business School, University House, University of Birmingham, Birmingham, B15 2TT, UK a article info Article history: Received 15 September 2014 Received in revised form 24 November 2014 Accepted 29 November 2014 Available online 24 December 2014 Keywords: Fuel cell Market entry Tesla Electric vehicle marketing abstract Fuel Cell Vehicles (FCVs) are a disruptive innovation and are currently looking towards niche market entry. However, commercialisation has been unsuccessful thus far and there is a limited amount of literature that can guide their market entry. In this paper a historical case study is undertaken which looks at Tesla Motors high-end encroachment market entry strategy. FCVs have been compared to Tesla vehicles due to their similarities; both are disruptive innovations, both are high cost and both are zero emission vehicles. Therefore this paper looks at what can be learned form Tesla Motors successful market entry strategy and proposes a market entry strategy for...
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