Game Shop Inc.
Memorandum
To: David McDonald, Financial Analyst at Game Shop Inc.
From:
Date:
Re: Improvement on Billing Process
We have received the request to evaluate the current management system and practices of Game Shop Inc. We have taken actions to identify problems and the areas of improvement based on the information provided. Our team has concluded maintaining a good reputation in the industry is a critical success factor for Game Shop Inc. because this industry is an oligopoly and anything that affects your reputation would affect your reputation with all members of the video game industry. We began by analyzing the current billing system. Past errors in the billing process have negatively affected your reputation and this could critically harm your future success in this industry. Then, we narrowed the potential causes of the problem down to the project managers lacking financial management skills, their compressed schedule, the deviation between the company policies regarding the purchase order system, and the current practice by the project managers, and the technical difficulties in the billing system. To satisfy the desired objectives, we have come up with three possible solutions: offer ongoing education to project managers to be capable of performing financial management, have a specialized billing system customized for Game Shop Inc., or integrate a new role under each PM to focus exclusively on the financial aspects of each project. Game Shop Inc. can expect to earn a good reputation by delivering high quality service to its customers. Therefore, this reports provides the in-depth recommendation on implementing changes to Game Shop Inc.
Billing Improvement Effort The billing improvements that you have implemented recently have had a positive effect in the accuracy of the billing however the timeliness still could benefit from further improvements. P-Cars, which focus on software
To: David McDonald, Financial Analyst at Game Shop Inc.
From:
Date:
Re: Improvement on Billing Process
We have received the request to evaluate the current management system and practices of Game Shop Inc. We have taken actions to identify problems and the areas of improvement based on the information provided. Our team has concluded maintaining a good reputation in the industry is a critical success factor for Game Shop Inc. because this industry is an oligopoly and anything that affects your reputation would affect your reputation with all members of the video game industry. We began by analyzing the current billing system. Past errors in the billing process have negatively affected your reputation and this could critically harm your future success in this industry. Then, we narrowed the potential causes of the problem down to the project managers lacking financial management skills, their compressed schedule, the deviation between the company policies regarding the purchase order system, and the current practice by the project managers, and the technical difficulties in the billing system. To satisfy the desired objectives, we have come up with three possible solutions: offer ongoing education to project managers to be capable of performing financial management, have a specialized billing system customized for Game Shop Inc., or integrate a new role under each PM to focus exclusively on the financial aspects of each project. Game Shop Inc. can expect to earn a good reputation by delivering high quality service to its customers. Therefore, this reports provides the in-depth recommendation on implementing changes to Game Shop Inc.
Billing Improvement Effort The billing improvements that you have implemented recently have had a positive effect in the accuracy of the billing however the timeliness still could benefit from further improvements. P-Cars, which focus on software
Bibliography: Merchant, Kenneth A., and Wim A. Van Der Stede. "Case Study Game Shop, Inc."Management Control Systems: Performance Measurement, Evaluation and Incentives. 3rd ed. Harlow: Financial Times Prentice Hall, 2012. 229-38. Print.