Financial Controls of Logistics Performance Assignment

Financial Controls of Logistics Performance - Assignment Example 8. Why is it difficult to obtain logistics cost data in many firms? Logistics costs are essential factors that influence the market competitiveness of firms and countries. Reducing logistic costs is bound to reduce the total costs of both goods and services. However, the attainment of logistics cost data is relatively difficult for most companies. This is primarily as a consequence of the lack of sufficient logistics cost information as a result of poor logistics management activities. Firstly, there is no unified definition of logistics cost (Bokor, 2012). The lack of uniformity with regards to defining logistics costs, as well as methods used in the calculation of logistics cost affects the acquisition of logistics data. Since the definition of logistics cost is incoherent, it is, therefore, tricky to compare the findings of logistics costs. In addition, it is difficult to acquire logistics data because the cost component is mostly not standardized. The limited standardization of c ost measurement deters the standardized acceptability of logistics data. In addition, difficulties emerge due to the hardships encountered in the collection of transparent information. On a micro level, a vast majority of firms publish cost data to serve their accounting needs, as well as external requirements such as government taxation (Pohlen, Klammer & Cokins, 2009). These produce an inhibitor to cost transparency throughout the data collection process. The accounting needs of firms often inhibit cost transparency, resulting in deficient information, disparities in the allocation of costs such as overhead costs and a narrow outlook of the concept of cost management. 9. Explain the four methods that can be used for controlling logistics activities. What are the advantages and disadvantages of each? 1. Standard Cost Standards are utilized as an integral part of flexible budgeting processes. One of the greatest advantages of standard cost is the provision of the most effective mana gement controls. Standard costs are typically ascertained from industrial engineering studies in which logisticians assess work activities and operations in order to realize effective and practical operating rates for different tasks. Another major advantage of standard costs is that they can be created for diverse logistics functions, including warehousing and transportation, as well as other logistical components and levels such as individual work activities and logistics sub-functions (Voortman, 2004). However, standard costs have the disadvantage of inapplicability in case of increased costs of doing business, for instance, increased transportation. 2. Budgets Budgets are quite effective in terms of monitoring, as well as controlling costs. In some instances, the utilization of standards is not needed. This is particularly the case for tasks, which are repeated infrequently. Another advantage is that budgets control business processes and costs in a highly effective manner. Nota bly, the effectiveness of a budget is based on the anticipation of cost patterns. Budgets are also advantageous since they are adjustable to reflect shifts in operating conditions, consequently, companies utilize budgets to control costs in most areas (Bokor, 2012). However, budgets can also deter effective implementation of innovative business ideas that entail more costs than those placed in the budget. 3. Productivity Standards Productivity standards are highly applicable when standard costs are unavailable

Measures to avoid the collapse of Jarvis construction Essay

Measures to avoid the collapse of Jarvis construction - Essay Example Jarvis Construction Company could have avoided collapse by ensuring an intensive analysis of the environment prior to formulating strategies. This should have been followed by a clear plan of implementation to ensure the mission of the construction firm remains on track (Adamson and Pollington, 23). Organizational strategic management demands that a company must remain in control of its strategies of operations. Jarvis construction lacked extensive external analysis in the United Kingdom construction industry. This caused the management to squander the opportunities available within the construction market. The conflict between price water house coopers and Jarvis was an early indicator of strategic collapse of weakening. The management of the company failed to appreciate the fact that strategies are not always implemented exactly as planned (Radosavljevic and Bennett, 19). Strategic organizational management in the construction industry demands flexibility depending on the market pr essures and the need to retain competitive advantage. The unforeseen environmental events affected the performance of the company adversely (Adamson and Pollington, 23). This could have been avoided by appreciating the gap between the strategies which are intended and those realised. The invariable changes in the course of implementation lead to profit warnings and inevitable losses. The management needed to have a constant strategic action with is dynamic and responsive to market pressures. The management of Jarvis Company could have invested in skilled and analytical thinkers. The training of personnel capable to digesting data and bring out the desired direction. The first change in the construction and the rising competition was not addressed in time. The failure of the company to adapt to the environmental influences has a profound effect on the firm (Radosavljevic and Bennett, 19). The management of the company needed to utilize industrial organization to ensure that the indus try maximized its competencies and resources (Adamson and Pollington, 23). This would have course Jarvis Construction Company to influence the strategies of the rival companies or even alter the industrial structure in the United Kingdom. An analysis of the operations shows that Jarvis Construction Company lacked a distinctive competence despite the strong reputation and decades of experience, the construction giant succumbed to the gradual market pressure which can be attributed to lack of operating strategy. The value of the company continued to fall (Radosavljevic and Bennett, 19). The management of Jarvis Construction Company failed to enhance its tangible and intangible assets. These included information, equipment, capital and knowledge. The management of the Jarvis admitted failure in delivery of quality services of London-Glasgow express. This could have been avoided by ensuring that the operational strategy is run effectively and effectively. The risk management strategy of the company needed to be reinvented to address the current threats to within the construction industry (Adamson and Pollington, 23). This is evidenced the results of the Potters Bar crash in Hertfordshire in 2002. The company needed to invest in sustained competitive advantage through excellence in service delivery. Systematic and comprehensive financial strategies could have been used to ensure the company avoided a financial meltdown. The financial advisers of Jarvis Construction Company should have helped the company to capitalize of the favorable market situations. Overreliance of a single client posed directly threats to the financial stability of the