Q1 Amcor Ltd is a decentralised organisation. Discuss how Sue would create responsibility centres and outline the role of self-managed work teams in implementing performance reports? Q2 If Amcor Decides to market the rigid plastic products in Australia

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Financial Performance Reports and Transfer Pricing 

The next day Sue talked to Tom Banks, the General Manager, for the rigid plastics division. He was enthusiastic about the financial performance reports currently in use.  He gave a brief overview of the division as follows and asked her opinion on how financial performance reports can be designed?  

“With more than 6000 people in 60 manufacturing operations in 13 countries, we are the leading supplier of consumer-driven rigid plastic packaging for the world’s most popular brands in the food, beverage, pharmaceutical and personal / homecare industries.  Some products involve unique shapes and specialised features with innovative finishes.  We as packaging material experts have to balance these needs and design products accordingly.  We have to conceptualise trends in aesthetics, consumer lifestyles and sustainability with the brand of the customers who purchase our packaging for their products.  For this we utilise powerful computer aided design and rapid prototyping before we embark on real production”. 

He continued:

“Our product innovation encompasses four important aspects. These are thermal stability, requiring ‘hot-fill’ capabilities; the capability to quickly and cost effectively manufacture a wide range of shapes and sizes; keeping product safely at the highest possible level by restricting oxygen and other elements that degrade the product; and, finally, providing sustainable packaging solutions with minimal raw material requirement and lighter container weight”.

Having now developed a good working understanding of what the rigid plastics division actually does; she shifted the focus of her research to the company’s overall strategy, goals and objectives.  In one of the company’s internal documents, Sue reads about the benefits of decentralisation and recalled studying this in her management accounting course. The first question that came to her mind was whether there was a need to decentralise the rigid plastics division further. She noted that the division’s offices are dispersed across the globe which suggested that it would be a complex task to create responsibility centres within the rigid plastics division.  Rigid plastics divisions operate in Latin America and the United States.

Sue also had access to the following information about the Amcor Ltd’s product related key financials for the year ended 30th June 2014 (in US dollars):                     

Business

Sales

 Profit before income tax

Flexibles

$6,779   million

$823   million

Rigid   Plastics

$3,192   million

$298   million

Investments   / Other / Intersegment

$(7)   million

$(39)   million

TOTAL

$9,964million

$1,082   million

Discussion forum questions

Q1 Amcor Ltd is a decentralised organisation.  Discuss how Sue would create responsibility centres and outline the role of self-managed work teams in implementing performance reports?

Q2 If Amcor Decides to market the rigid plastic products in Australia (they are currently produced overseas) explain the types of transfer pricing available and list the factors Sue would take into consideration?

 i put to you example 

make it like this or do paraphrasing for it 

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