P30897: You have Been Engaged by the Company as a Business Consultant to Provide Advice on How to Overcome this Difficult Period: Strategic Management Accounting (SMA) Report, UoP, Singapore

Case study:

ABC Limited is an established manufacturer of a line of electric fans targeting both the household and industrial markets. It has experienced sales growth over the last 7 years. The company has implemented several automated systems in its assembly plant and has a team of professional managers heading the following functions: sales, production, quality control, technical engineering, procurement, cost and others.

However, during early 2020, ABC Limited experienced a major dislocation of its operations due to the Covid-19 pandemic across the globe. Throughout the Covid-19 lockdown period, the company suffered major issues such as production disruption, a decline in sales and profit margin.

You have been engaged by the company as a business consultant to provide advice on how to overcome this difficult period and to transform the company if necessary to better manage its operation post-Covid-19. Below are the Income Statement, Balance Sheet and some trend information of ABC Limited:

ABC LIMITED
CONSOLIDATED INCOME STATEMENT
For the year ended 31 March 2020

Required:

Write a business report to discuss and advise the company in the following areas:-

1) Discuss and advise ABC Limited on how to manage its operations during the Covid-19 period. You have to recommend a ‘survival strategy during the lockdown period with cost implications.

2) Has the lockdown during the Covid-19 period affected ABC Limited’s need for strategic management accounting information?

3) Discuss and advise ABC Limited on a ‘recovery strategy’ after the pandemic is over.