Discussion Thread Cost Management, Strategy, Technique Replies

Hi Richard, Your analysis of Chick-fil-A's cost management methods and profit planning strategies is comprehensive and well-grounded in relevant literature. I will now expand on your points with additional sources and insights. Costing Management Method Activity-Based Costing (ABC) is indeed a crucial tool for Chick-fil-A's cost management, as stated in your analysis. ABC allows the company to allocate overhead costs more accurately by considering the demand each activity places on resources (Kaplan & Anderson, 2004). This approach aligns well with Chick-fil-A's franchising model, as activities and their associated costs can vary significantly across different franchises. ABC also supports Chick-fil-A's commitment to fair pricing, reflecting its biblical principles. This link between the costing method and organizational culture is a unique aspect of Chick-fil-A's strategy and could be further explored in future analysis. Costing Technique Your analysis of Chick-fil-A's use of job order costing is also insightful. This technique, as you pointed out, helps the company to trace costs to individual units of production and identify areas of inefficiency. In addition, job order costing aligns well with Chick-fil-A's focus on quality and customer satisfaction. By tracking the costs associated with each order, the company can ensure that it is providing value for money and maintaining a high standard of product quality (Drury, 2012). Strategy Chick-fil-A's strategy of prioritizing customer service and satisfaction is indeed a key differentiator. This strategy also aligns with the company's Christian values, as providing excellent service can be seen as an extension of the biblical command to "love your neighbor as yourself" (Mark 12:31, Holy Bible, 2020). This connection between strategy and values is another unique aspect of Chick-fil-A's approach and could be a fruitful area for further research. Cost Estimation Technique and Profit Planning The bottom-up cost estimation method you described is a useful tool for Chick-fil-A, as it allows the company to forecast costs accurately and plan for profit (Northeastern University, 2019). This method also aligns with Chick-fil-A's focus on detail and quality, as it ensures that all relevant costs are taken into account. In addition, the step-by-step approach to profit planning you outlined is a robust method that aligns with Chick-fil-A's strategic goals and commitment to financial stewardship, reflecting its biblical principles (Fatmawatie, 2021). In conclusion, your analysis of Chick-fil-A's cost management and profit planning strategies is well-grounded in the literature and provides valuable insights into the company's unique approach to these areas. Further research could explore in more detail the connections between these strategies and the company's Christian values, as well as the implications of these connections for Chick-fil-A's broader strategy and performance. The analysis of Chick-fil-A's managerial accounting and strategic practices can indeed be integrated with biblical principles, as the company's culture is deeply rooted in the Christian faith. First, the company's use of the Activity-Based Costing (ABC) method aligns with the biblical principle of stewardship. The Bible teaches that everything belongs to God, and humans are given the responsibility to manage and care for these resources wisely (Psalm 24:1). ABC allows
Chick-fil-A to allocate costs accurately, ensuring that resources are used efficiently and effectively. Second, Chick-fil-A's job order costing technique reflects the biblical teaching of fairness and honesty. By accurately tracing costs to each order, Chick-fil-A ensures that prices are fair and transparent. This practice aligns with the biblical command in Proverbs 11:1, which states, "A false balance is an abomination to the LORD, but a just weight is His delight." Third, Chick-fil-A's customer-centric strategy embodies the biblical command to "love your neighbor as yourself" (Mark 12:31). The company's commitment to providing excellent service and high- quality food is an expression of this love, as it seeks to meet the needs and desires of its customers. Lastly, Chick-fil-A's profit planning and cost estimation techniques demonstrate the company's commitment to prudent financial management, a principle that is emphasized throughout the Bible (Luke 14:28-30). By carefully planning for profit and accurately estimating costs, Chick-fil-A is exercising good stewardship of the resources entrusted to it. In conclusion, Chick-fil-A's managerial accounting methods and strategic practices can be seen as a manifestation of its commitment to biblical principles. These practices not only contribute to the company's financial success but also serve to glorify God through obedience to His commandments. Great work on this week's discussion board. Sincerely, Cassidy H References ActionStrategy (n.d.). The Chick-fil-A Business Model. ActionStrategy. Retrieved from [URL not provided]. Dhenyalsah, B., & Bawono, A. (n.d.). Strategic profit planning in increasing the company's financial performance. Journal of Finance and Accounting. Drury, C. (2012). Cost and management accounting. Springer. Fatmawatie, R. (2021). Profit planning strategy in improving the company's financial performance. International Journal of Multicultural and Multireligious Understanding, 8(1), 496-505. Hansen, D.R., Mowen, M.M., & Guan, L. (2021). Cost Management: Accounting and Control. Cengage Learning. Holy Bible (2020). New International Version. Bible Gateway. Kaplan, R. S., & Anderson, S. R. (2004). Time-driven activity-based costing. Harvard Business Review, 82(11), 131-138. Pereira, R. (2023). Chick-fil-A: The faith-fueled chicken empire. Fast Food Journal, 45(2), 35- 49. Northeastern University. (2019). 4 Effective Cost Estimation Methods. Northeastern University. Retrieved from [URL not provided]. Weygandt, J.J., Kimmel, P.D., & Kieso, D.E. (2020). Managerial Accounting: Tools for Business Decision Making. Wiley.
Hi Caityln, Your analysis of Amazon's Enterprise Risk Management (ERM) approach is comprehensive, and it's evident that you've synthesized materials from textbooks, journals, and other resources effectively. Additional insights and references can further elucidate the role of ERM in Amazon's operational model. The integration of enterprise risk management (ERM) strategy with Amazon's business functions aligns well with several biblical principles. Firstly, the practice of ERM embodies the biblical principle of prudence and good stewardship. Proverbs 22:3 states: "The prudent see danger and take refuge, but the simple keep going and pay the penalty." This verse underscores the importance of foreseeing risks and taking appropriate measures to mitigate them, which is essentially the goal of ERM. In the context of Amazon, the company's commitment to ERM reflects its dedication to prudent management and good stewardship of its resources. Secondly, the division of ERM responsibilities among various teams at Amazon resonates with the Apostle Paul's analogy of the church as a body with many parts, each having its own function (1 Corinthians 12:12-27). Paul emphasizes that while each part has a different function, all parts are equally important and work together for the overall health and function of the body. Similarly, each ERM team at Amazon has a specific role, but all teams work together to manage the company's overall risk profile. Lastly, the continuous effort in ERM to identify, assess, and manage risks reflects the biblical teaching of vigilance. 1 Peter 5:8 advises, "Be alert and of sober mind. Your enemy the devil prowls around like a roaring lion looking for someone to devour." In a business context, this can be interpreted as a call to be vigilant about potential risks and threats that could harm the organization. The establishment of specialized teams for ERM, as described in your discussion, reflects Amazon's commitment to managing diverse risk elements within its vast business operations. This approach is consistent with the concept of "division of labor," which Adam Smith, a renowned economist, advocated for improved efficiency and productivity (Smith, 1776). Amazon's application of this principle in its ERM structure underlines the company's strategic alignment with proven economic theories. Amazon's use of ERM also aligns with modern risk management theories. As outlined by Mikes and Kaplan (2015), organizations today are shifting from a silo-based risk management approach to an integrated one. Amazon's structured ERM teams, which focus on specific risk categories while working cohesively, exemplify this integrated approach. The advantages and challenges of implementing ERM that you've highlighted are supported by academic research. As identified by Hoyt and Liebenberg (2011), firms with extensive ERM practices tend to have higher firm value, affirming the benefits of ERM you've mentioned. However, the implementation of ERM does require commitment and resources, and its success relies heavily on the quality of individuals involved (Bromiley et al., 2015), supporting your reference to Fontaine (2022). Your discussion also emphasizes the necessity of careful planning and preparation for ERM to be effective, which aligns with Proverbs 21:5 in the Bible: "The plans of the diligent lead to profit as surely as haste leads to poverty." This biblical principle reinforces the importance of thorough planning in risk management. In conclusion, Amazon's approach to ERM reflects several biblical principles, including prudence, good stewardship, the value of diverse roles within a unified body, and the importance of vigilance. These principles not only guide the company's risk management strategy but also serve as a foundation for its overall business operations and corporate culture. In conclusion,
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