Competitive Analysis Essay Example | Topics and Well Written Essays - 1000 words

Competitive Analysis - Essay Example Its cost only includes market research, advertising and promotion hence enabling the company to minimize on the cost of production. On the other hand, bottlers are provided by syrup by the concentrators’ where they then they mix it with sugar, treat with local water and carbonate it. Finally, they bottle it and then deliver it to the retailer. All these activities make the bottling business capital intensive as it requires high technology in production. Returns received by concentrate producers greatly differ from those received by the bottlers due to various reasons. The main factors as indicated in the above paragraph are the financial cost incurred by both companies (Fleisher & Bensoussan, 2007). Bottlers for instance incurs low cost of production as it only concentrates mainly on advertising, market research and product development whereas bottlers activities involve investment of huge amount of capital as its main concern is to archive its main goal of improvement and mod ernization of the bottling lines which as a results requires high amount of capital (Fleisher & Bensoussan, 2007). Secondly, the other cause of variance in returns is the availability of raw materials. The concrete producers require fewer raw materials hence its major spending is on purchase of cheap inputs like citric acid, natural flavors and also caffeine; on the other hand bottlers require large number of production materials. They invest in purchase of inputs such as packaging materials like cans, bottles and also sweeteners such as aspartame which prove to be expensive hence reducing their profitability as they are unable to reduce on the outflow of money (Fleisher & Bensoussan, 2007). The returns received by bottlers are also less than those received by the concentrate producers due to the risk levels each of the company face. Concentrate producers are responsible for the brand promotion and also invest hugely on trademark to stimulate sales; on the other hand, bottlers have little risk in their operations as they already have an advantage i.e. have a famous name which is well known all over the world .This development provide them with stable returns and low risk (Bensoussan & Fleisher, 2008).

Describe the perceived roles and involvements of management accounting Essay

Describe the perceived roles and involvements of management accounting in supporting the decision process within the Union Carbide Pesticide Plant prior to the disaster; - Essay Example Such was the extent too great that when a week after that more than 8000 other people died with gas related ailments which were also attributed to the disaster in the same period (Ingrid 2001). Some of the main management accounting issues that can be learnt from this prior to the disaster happening can mainly be attributed the fact that the courts found the management of the UCIL(Union Carbide India Limited), the parent company responsible to be liable for negligence. This lead to their ligation and consequently finding the ex-employees liable for negligence fining them $2000 each (BBC News,2010). There were a number of cost management issues that could be identified prior to the disaster. Ingrid (2005) notes that prior to the happening of the disaster, the demand for pesticides that are made from the gas had fallen. This is said to have attributed to the build up of the gas within the firm as there was reduced use of the gas for the pesticides’ manufacure. However, the firm could not reduce the amount they were manufacturing could be mainly be associated with the break even cost of the manufacturing. Manufacturing less as per the requirement at that time could have to increased cost and thus the company decided to continue producing at that that higher rate even when less of the gas was required. Ingrid (2006) says that prior to the disaster, there had been two trade unions who had been quoted to have been complaining about the pollution within the plant. This means that the plan had not put in place a proper waste and anti pollution policies within the plan. The result had been a worker losing life after the employee was splashed with phosgene while at work. Pollution management within any organization should be planned for and costed for by the management within the organization. While it is a cost that many organizations may