Management Accounting Case Study - Assignment Example

Download file to see previous pages Lastly, this report looks at the financial position of the company and its capability to fund the project under consideration.
The main strengths of Moonsnail Soapworks are: its unique selling proposition; high quality, all natural and handmade products; intensive product development effort; strong brand equity; and strategic marketing and location. Moonsnail Soapworks suffers from weaknesses which includes Ms. Ridgway's inadequate knowledge in management and the company's exposure to losses from product obsolescence. Opportunities abound for Moonsnail. The major opportunity for the company is the introduction of additional products to broaden and lengthen the product line and widen its customer base. As customers are becoming more and more concerned with having a natural lifestyle, it is expected that they will seek for product offerings like the ones provided by Moonsnail. The firm should also maximize the use of the internet to efficiently market its products. The major threat for Moonsnail is the unstable tourist arrival due to external circumstances. Another is the rising prices in oil prices which can further dampen the demand for tourism activities.
Moonsnail is financially capable of investing in Moon Baby Cream. The company is records remarkable profitability, high efficiency, and liquidity. Its huge cash account can be utilized to introduce its new product.
One of the biggest challenges faced by business organ...
Conclusion 12
References 13
Appendix 14










I. Introduction

One of the biggest challenges faced by business organizations is decision making. Through this feat, the company chose among a host of possible opportunities to take advantage of and shapes its future. In decision making, a firm critically assesses possible alternatives to determine which course of action will bring maximum benefits at the same time helping the company in realizing its vision. It is imperative that in coming up with a business decision, an organization looks at its competitive position to efficiently determine if it is ready to undertake a significant move. Another factor which is equally important to take into consideration is the firm's financial position and readiness as financial resources are always needed to back company projects like product introduction.
This report will examine the most pressing issue faced by Moonsnail Soapworks-the introduction of a new product called Moon Baby Cream. As stated previously, the readiness of the company to launch a product can be assessed by looking at the competitive performance and the financial position of the business organization. The next section will then take a closer look at the company by employing frameworks which are designed to determine the internal strengths and weaknesses of the Moonsnail as well as its external environment. The financial position of the firm will also be examined through ratio analysis. Lastly, the feasibility and profitability of introducing Moon Baby Cream is also analyzed through cost and benefit analysis. This report will conclude with its recommendations.





II. Moonsnail Soapworks: Competitive Position
SWOT Analysis
SWOT (Strengths, Weaknesses, ...Download file to see next pagesRead More