Management Accounting Study of Amcor Limited†Free Samples

Question: Discuss about the Management Accounting of Amcor Limited. Answer: Introduction This study deals with a company named as Amcor Limited that is an Australian-based multinational packaging company and headquartered in Australia (Amcor.com 2017). The company is listed in Australian Stock Exchange and creates packaging solutions by using flexible as well as rigid plastics packaging. Amcor Limited is the leader in the packaging manufacturer where they offer customers with sustainable packaging solutions with highest quality as possible. There are two main packaging broad lines of Amcor Limited that is Rigid Plastics as well as Flexibles. Furthermore, Amcor Limited manufactures PET bottles as well as hard plastic containers. Amcor Limited is a global packaging leader where their core values are to attain social responsibility and to conduct long-term business strategy in the most appropriate way. The current segment elucidates the operations of Amcor Limited and how it relates with the present case that is explained in the study (Simons 2013). The Amcor case is one of the popular cases where many criticisms had been noted and this study highlights on one of those cases that need urgent attention by the Senior Management of Amcor Limited. Balanced Scorecard approach and strategy map approach for Amcor Limited has been presented in graphical format that clearly demonstrates the action or initiatives that needs to be undertaken by the management based on four important dimensions, that is customer perspective, financial perspective, learning growth perspective and internal process perspective (Valmohammadi and Ahmadi 2015). The Amcor Case: The Amcor case has been taken from the news article The Sydney Morning Herald that is titled as No compensation for Amcor in court case (Butler 2017). In this particular scenario, it was noted that Amcor Limited is to receive no compensation for breaches of duties by the Senior Executives who secretly purchased two businesses that belongs to the packaging giant. Due to that, Victorian Supreme Court Judge declared that Amcor Limited had failed to show the case where there is a breach by executives that include cardboard box that has damaged Amcor Limited. Addition to that, it was ordered by two of the Executives named as Trevor Barnes and Craig Holihan for paying the packaging company that is half of the profits reaped from one of the business. After the judgment, it clearly to understand that an end long-running litigation was conducted between Amcor Limited as well as Executives that had run up legal bills that estimates more than millions of dollars (Reefke and Trocchi 2013). Furth ermore, Mr. Hodgson had sued Amcor Limited for wrongful dismissal where Amcor Limited responds to the allegations when Executives swindles the company by purchasing two businesses from the knock down prices in the early 2000. After summarizing the judgment, it was noted that executives of Amcor Limited were hiding their interests in the companies that actually was found manifestly incompatible with the employment relationship in a serious dimension. It was the Executives of Amcor Limited who was using the information in improper ways as they have gained from the employees of Amcor Limited. This particular case will return to court on April 2016 for a directions hearing (Rampersad and Hussain 2014). Long-term goals and objectives of Amcor Limited There are five key areas that Amcor Limited desire to achieve as their long-term goal and objectives for attainment of sustainable workplace. These long-term objectives are as follows: Environment- Amcor Limited believes in implementing environmental management systems as well as improving environmental performance. Addition to that, Amcor Limited sets regulatory measures as well as working towards EnviroAction targets (Perkins, Grey and Remmers 2014). Community- Amcor Limited conducts open as well as constructive dialogue with the communities. Addition to that, Amcor Limited supports local community projects as well as utilizes packaging expertise for addressing social and environmental needs (Cooper, Ezzamel and Qu 2017). Workplace- Amcor Limited aims at maintaining safe workplace, engaging as well as developing with the associate through maintaining an assorted workplace and providing equal opportunity (Keyes 2016). Marketplace- Amcor Limited utilizes life cycle assessment capabilities that offer customer responsible packaging as well as supporting sustainability objectives of the customers. Addition to that, Amcor Limited promotes the role as well as benefits of responsible packaging (Cooper, Ezzamel and Qu 2017). Economy- Amcor Limited aims at demonstrating good governance, business continuity management as well as sensible risk taking (Cooper, Ezzamel and Qu 2017). Identification of group of stakeholders The key stakeholder of Amcor Limited include investors, customers and suppliers, co-workers, supplies of capital, industry bodies as well as government and media where the company operates within the stipulated time frame (Kaplan and Anderson 2013). Competitors of Amcor Amcor Limited faces intense competition from the competitors namely, Georgia-Pacific LLC and Silgan Holdings Inc (Cooper, Ezzamel and Qu 2017). Formulating a Balanced Scorecard for Amcor Perspectives Objective Performance Measures Initiatives Lag Lead Financial Perspective Increased shareholder value Low-cost operation Driving growth in the merge market Revenue Growth Lower costs of production process Diversified market Sales Mix Production as well as operation expenses Sales growth by region Initiatives taken for expanding diversified product business units in both packaging as well as materials for driving growth through acquisition of other packaging manufacturers such as Deluxe packages, flexible Americas and Nampak Flexibles (Cooper, Ezzamel and Qu 2017). It means continued focus on new techniques as well as materials for optimizing production Expanding in the high-growth markets where Amcor Limited participation is relatively low for countries such as South Africa and Brazil (Cooper, Ezzamel and Qu 2017). Customer Perspective Expanding customer base Industry leading customer loyalty Positive impact on the community as well as society Market Share Customer Retention Environmental Impacts of packaging Number of new customers Number of retained customers and on-time delivery rate Number of sustainable packaged produced Developing a differentiated range of products by bringing new products as well as production technologies and materials (Cooper, Ezzamel and Qu 2017) Responsible packaging initiatives Maintaining market leadership from number of acquisitions as well as mergers and focusing on knowledge and expertise in getting access to rigid plastics packaging. Internal Business Perspective Product Leadership Strategy Customer Intimacy strategy Operational Excellence Strategy Developing new products Innovating existing packaging products Improving speed to market Customer relationship management systems Customer support service Customer interaction Decreased operation costs as well as cycle time Ensuring high standards of quality as well as delivery time Optimizing supply chain of the packaged products (Coe and Letza 2014) Learning and Growth Perspective Human Capital Information Capital Organization Capital Skills Systems traditions education Databases management awareness Networks configuration and joint effort Strategy Map for Amcor Limited Concluding Statement and recommended suggestions On critical analysis, it is understood that Amcor Limited should adopt the balanced scorecard approach as well as strategy map for monitoring the corporate and the divisional performance (Hoque 2014). Both the mentioned approach considers as one of the important tool for bringing sustainability performance that need proper attention by the Senior Management of Amcor Limited. After that, Amcor Limited should be using ambitious goals for continuously improving the environmental impacts of the operations in case of greenhouse gases emissions, municipal water use and waste that go to landfills. The approach that is recommended to Amcor Limited is identifying as well as implementing environmental improvement opportunities that will help in motivate the staff members of Amcor Limited (Cooper, Ezzamel and Qu 2017). At the end of the study, it is concluded that Amcor Limited offers sustainable packaged materials to the end users. The above analysis has been done by preparing balanced scorecard and strategy map for the company named as Amcor Limited so that the company minimizes the allegations that was faced by them during the past years. The above analysis explains balanced scorecard approach and strategy map approach as it will directly help in minimizing the risk assessment as and when applicable. All the four dimension of balanced scorecard is unique by nature and signifies different perspectives such as customer, financials, learning growth and internal process. By this, it was clear to understand each of the perspective and link it with the case study so that proper measures can be taken for future attainment of goals as well as objectives in the most appropriate way. References Amcor.com. 2017.Amcor - Home. [online] Available at: https://www.amcor.com [Accessed 18 May 2017]. Butler, B. 2017.No compensation for Amcor in court case. [online] The Sydney Morning Herald. Available at: https://www.smh.com.au/business/no-compensation-for-amcor-in-court-case-20120320-1vgv4.html [Accessed 18 May 2017]. Coe, N. and Letza, S., 2014. 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