Saturday, November 6, 2010

Decision Support System and Example of Critical Reporting for SMU MB0036 Assignment

It is the solved assignment of – “What is a Decision Support System? Name one example of critical Reporting for each of the Production, Marketing and Finance departments of the Company.” You can see some other solved assignments of SMU MB0036 (Strategic Management & Business Policy) such as – KRA of CFO and List and explain the objectives of a Bankruptcy Law.

Many companies in developing countries have a very detailed reporting system going down to the level of a single product, a single supplier, a single day. However, these reports – which are normally provided to the General Manager – should not be used by them at all. They are too detailed and, thus, tend to obscure the true picture. He must be alerted to unusual happenings, disturbing financial data and other irregularities.

The first level is the annual budget of the company which is really a business plan. The budget allocates amounts of money to every activity and/or department of the firm.

The second tier of financial audit and control is when the finance department is able to produce pro forma financial statements monthly.

These financial statements, however inaccurate, provide a better sense of the dynamics of the operation and should be constructed on the basis of Western Accounting Principles.

The Manager should have access to continuously updated statements of income, cash flow, and a balance sheet. The most important statement is that of the cash flow. The manager should be able to know, at each and every stage, what his real cash situation is – as opposed to the theoretical cash situation which includes accounts payable and account receivable in the form of expenses and income.

The presentation to the Board an annual plan of sales and marketing including: market penetration targets, profiles of potential social and economic categories of clients, sales promotion methods, advertising strategic investor also implements these plans or supervises their implementation.

This strategic investor is usually possessed of a brand name recognized in many countries. It is the market leaders in certain territories. It has been providing goods and services to users for a long period of time, reliably. This is an important asset, which, if properly used, can attract users. The enhancement of the brand name, its recognition and market awareness, market penetration, co-branding, collaboration with other suppliers – are all the responsibilities of the strategic investor.

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