SIMA (case study 4).docx - 5 What are the strategic implications of your analysis What recommendations do you have for the management of JBI The

SIMA (case study 4).docx - 5 What are the strategic...

This preview shows page 1 out of 1 page.

5. What are the strategic implications of your analysis? What recommendations do you have for the management of JBI? The strategic implications are the major consequences arising from not understanding and tackling the multitudinous impact of forces and dynamics of change that can often impact a business from various angles such as political, regulatory and legal, economic and monetary, social-cultural, technological, ecological and environmental. The strategic implication of our analysis is Saver Superstore has been over-cost and that this customer has a much higher profit margin than Johnson Beverage Inc. (JBI) had thought. JBI can lower the price without fear of losing money on the sales.
Image of page 1

You've reached the end of your free preview.

Want to read the whole page?

Unformatted text preview: The recommendations that we have is JBI should implementing activity-based costing (ABC) system. ABC system is an accounting method that identifies and assigns costs to overhead activities and then assigns those costs to products. An activity-based costing (ABC) system recognizes the relationship between costs, overhead activities, and manufactured products. Through this relationship, it assigns indirect costs to products less arbitrarily than traditional methods. Next JBI should use the information that they can get from the ABC system to determine if there are customers that they should drop or if there are customer service costs that could be improved on....
View Full Document

  • Fall '14
  • dr.ian

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Ask Expert Tutors You can ask You can ask ( soon) You can ask (will expire )
Answers in as fast as 15 minutes