Note:
This report is far more comprehensive than would be expected from a candidate in exam conditions.
It is more detailed for teaching purposes.
T4 Part B – Case Study
Jot – toy case – March 2012
REPORT To: Jon Grun, Managing Director, Jot
From: Management Accountant
Date: 28 February 2012
Contents
Review of issues facing Jot
1.0
Introduction
2.0 Terms of reference
3.0 Prioritisation of the issues facing Jot
4.0 Discussion of the issues facing Jot
5.0 Ethical issues and recommendations on ethical issues
6.0 Recommendations
7.0
Conclusions
Appendice s Appendix 1 SWOT analysis
Appendix 2 PEST analysis
Appendix 3 Selection of new outsourced manufacturer for products YY and ZZ
Appendix 4 VP “own brand” proposal
Appendix 5 Inventory valuation
Appendix 6 Calculations for outsourced manufacturers P and Q for licensed action figures
Appendix 7 Email on the key criteria for the selection of outsourced manufacturers
1.0
Introduction
Jot is a small unlisted company which designs and outsources the manufacture of a range of children’s toys. It has grown rapidly since it was established in 1998.
It is currently experiencing manufacturing problems due to an earthquake affecting 2 of its outsourced manufacturers and also quality problems with another outsourced manufacturer. The quality of the company’s products, upon which its reputation is based, must not be compromised.
The Jot brand name is known for quality toys but it is important that its products appeal to cost conscious retailers and price sensitive customers. Jot can use the costleadership strategy, using Porter’s generic strategy framework, to select the minimum cost in its choice of manufacturers for products YY and ZZ.
2.0 Terms of reference I am the Management