Acct102 Managerial Accounting Paper Editing Services

Acct102 Managerial Accounting Oz Assignments

Acct102 Managerial Accounting Paper Editing Services


The Aluminium Industries was found in the year 1996 and is largely driven by a futuristic vision and long term strategic planning. The firm is engaged in in various product brands and service departments and aims to engage in the high quality service for the different customers. Each of the company`s brand is a market leader which thereby goes a long way in assisting the firm to attain long term success ( 2018). The report will be concentrating on one of the five brands named AiFAB. The firm is a services and systems supplier for the different fabrication needs of the organization behaviour and is engaged in a die design and the supply of aluminium extrusion so as to engage in surface finishing, assembling, packaging and shipping.

The main aim of the report is to analyse the manner in which AiFAB makes use of various performance management as well as management accounting techniques so as to help their managers in the procedure of decision making. The report has been divided into two parts with the first part concentrating on the industry analysis using the tool of Porter`s Five force model. This shall assist in the identification of the competitive strategy of Priceline. The second half of the report will be discussing the different tools of management accounting using product costing, balanced scorecard, cost volume analysis, budgeting, sustainability and other tools to analyse the standing of AiFAB. Lastly, certain recommendations in order to assist the organization will also be provided.

Part A

Overview of the Aluminium Industry

The Global Aluminium market is highly competitive with well-resourced players who have been applying various techniques and growth strategies in order to compete with various firms in the market. Strategic Alliances can be deemed to be a common strategy which assists the different firms to perform simultaneously and engage in various competitive gains. The construction segment has expanded considerably and due to this, it has become one of the key economic drivers of the aluminium industry and resulted in its considerable growth.

One of the markets which has highly benefited from this growth is the Asia Pacific market as it is a considerably emerging economy and thus the demand for the construction of various commercial as well as the residential buildings has increased considerably ( 2018). Moreover, with the power of the different economies have been increasing considerably the use of aluminium in the automobile industry has also increased and has been benefitting the particular industry at large. According to (2018), the global aluminium market has been displaying a CAGR of approximately 6.4% between the years 2017 to 2025. Hence, it is understood that if it’s progressing at this rate, the market will be valued at around US$249.29 bn by the end of 2025 which is almost a 100 bn difference from the year 2016

Figure 1: The Aluminum Market revenue

( Source: 2018).

Moreover, in order to analyse the global aluminium market, it can be studied on the basis of a few parameters which shall assist in the analysis of the growth drivers of the particular industry. The different segments into which the global market has been divided into is dependent on the products such as plates, foils, ingots, sheets and wires.

In order to figure out the success of the market, the Aluminium market can be classified into the major markets of North America, Asia Pacific, Europe, Latin America as well as Africa. Although the aluminium market has been expanding in all these countries, the growth in the Asia- Pacific industry can be taken to be the largest ( 2018). This can be said to be a result of the growth in the industries of India, Malaysia, China, Vietnam and other industrialized countries. The quality of Aluminium as a contributor to the construction industry can be stated to be the primary reason why the aluminium industry has been performing well.

Analysis through the five forces Analysis

The five forces can be stated to the primary tool which assists in the analysis of the different competitive forces which tend to operate in a specific industry and go a long way in helping the firm to ensure that they are reasonably aware of these forces and based on this they form their decisions considerably with respect to the particular strategy which they will be making use of in order to attain success ( 2018). This tool was developed by Michael Porters and analyses any industry with respect to the given five aspects:

1. Barriers to entry

2. Power of the buyers

3. Power of the Suppliers

4. Rivalry

5. Availability of Substitutes

The Aluminium Industry as stated previously has registered an enormous growth rate due to the increase in the construction industry as well as the automobile industry. However, in order to ensure that the industry is analysed with respect to all the related factors, the given section presents the analysis of the industry with respect to the five forces tool.

Barriers to entry

This factor can be defined as a force which has a huge impact on the performance of the current players in the industry. If the barriers to enter the industry is considered to be high then no new firms will be able to enter the industry easily and this is considered to be highly beneficial for the existing players. However, if there exists low barriers to entry then, the existing players face a continuous trend of increased competition. Hence, for the aluminium industry, the barriers to entry are considered to be relatively medium. This is because, the economies of scale can be deemed to be a relatively important factor for the particular industry and hence, if the economies of scale are better than lower costs are incurred and the bargaining power during the sourcing procedure of the raw materials increase considerably. In this case, if the different aluminium companies are integrated then, the barrier to entry becomes higher. Moreover, another factor why the particular factor becomes high is because the capital investments which are required in the particular industry are considerably high and thus it is not possible for all the different business to soundly invest in the particular field. In addition to this, the gestation period of the industry can be also considered to be quite high which makes the different businesses quite sceptical. However, a positive aspect is that the government policies in the particular segment are quite favourable in nature and thus this often encourages the new companies as well as the existent firms.

Bargaining power of the Suppliers

The Bargaining power of the suppliers can be considered to be considerably low in case of the fully integrated upstream suppliers as they tend to have their own resources for the same. However, for other semi- integrated products which are considered to be downstream in nature, the bargaining power becomes a bit higher ( 2018). Very often the bargaining power for the power purchase becomes limited because the government acts as a sole provider, the increased usage of the captive powers thereby assist the firm in ensuring that the companies tend to rationalize their costs to a great extent.

Bargaining Power of Customers

As the end product of the particular industry relatively acts as a commodity, the different customers in the industry tend to enjoy a relatively high power of bargaining as the different prices of the industry greatly depend on the demand as well as the supply. For this reason, the different companies tend to bargain and demand a price which is relatively based on their convenience. Moreover, the different aluminium firms are supposed to abide by this because very often the automobile as well as the construction firms have a relative sister concerned business which provides them with adequate raw materials and other resources.

Competitive Rivalry

The competitive rivalry can be considered to be quite high in the industry because there is an existent of various firms in the industry and their competition is largely a factor of the price charged and the quality of the product being provided ( 2018). In order to ensure that the different companies are being successfully able to combat against the particular competition, they engage in relative differentiation so as to ensure success.

Threat of substitutes

The threat of substitutes can be deemed to be lower based on the perspective that the usage of the aluminium in the automobile, as well as the construction industry, has been increasing considerably. However, in return steel tends to act as a considerable substitute for the particular organization in the segment. Moreover, with respect to the power sector, copper is being replaced by the aluminium due to its conductivity. Aluminium still holds a considerable position and its usage remains the highest but it can be stated there is a presence of various substitutes for the particular product.

It is predicted that in the future the demand will increase even more at a rate of six to eight percent per annum.

Competitive Strategy

Competition base

The organization is a profit business and thus it needs to engage in an adequate strategy to ensure that it is able to compete with the different competitive powers. The threats which the company has been facing from the new competitors can be deemed to be relatively high because not only the company faces extensive competition from the international companies but also with respect to the local manufacturers. The primary international competitors are the importers. In addition to this, the firm also has to combat against the competition as the customers have increasing power over the purchases. The main point of consideration for the firm can be taken to be that the rivalry companies have been increasing considerably.

Target market

The primary target market for the company can be stated to be the different large organizations who use the aluminium as a raw material for their operations and related projects. The company offers a wide range of products like the CNC Capabilities, Manufacturing Logistics, Digital Fabrication, Extrusion Design as well as related consultancy. Moreover, each of its product offerings tend to have exquisite Aluminium finish which is considered to be good for the firm at large ( 2018).

Hence, it targets old as well as new companies who would like to enable the latest trends in the aluminium industry and ensure that their products are the best. Moreover, it can be seen that the organization indulges in a niche marketing strategy for a selected group of organizations. This is considered to be good with respect to the unique offerings being made by the firm (Aluminium Industries. 2018).

In general it can be stated that the firm is employing differentiation strategy which will enable them to achieve success in the long run and ensure a competitive edge for the firm.

Part B

The Business Activities

The primary business activities of the chosen brand under the Aluminium Company, AiFAB will be extensively discussed in this section. The main activities of the firm are considered to be extrusion design and consultancy services. The main purpose of AiFAB is to provide the different customers with a full package which shall assist them in achieving their specific project needs. They tend to engage in innovation through some unique ways as the designers of the system tend to work in hand with the different machinists and the fabricators. The firm greatly relies on the following in order to ensure long term success:

1. The firm ensures suite compatibilities before engaging in the production stage which thereby goes a long way in ensuring that the organization tends to ensure good quality products and services.
2. The firm draws on checks for errors as well as intolerances.
3. Reduces manufacturing costs and increases the quality of the products
4. It engages in stock forecasting which provides tailored solution to consumer needs.
5. Engages in 3d printing
6. Helps the organization by consulting them for new ideas.
7. Extrusion Design

The AiFAB has one of the best design departments. The company has an access to various in house designers which then go a long way in ensuring that the firm tends to work in a close association with the fabrication teams to improve the designs. The firm tends to make use of the latest designs and 3d printings. The main key aspect of the firm in the given case lies in ensuring that the client companies tend to engage in extrusion of efficiencies and tend to improve their quality.

Consulting services

The brand tends to engage into the service of consulting as well as advice upon project management capacities. They manage the aluminium activities of the organization and tend to offer the stocking as well as forecasting services as a part of their package. The business cycle of the firm is reviewed along with ensuring that the stock of the firm is adequate with respect to the peak demand periods. By assisting the client companies with adequate product development facilities, the organization provides innovative solutions to the different consumers.

Digital Fabrication

The firm has availability of a wide array of advanced machinery and tooling options which then permits them to provide an intricately interconnected system. The firm has an access to various CNC Machines and therefore, their equipment’s can be used to design the aluminium products in the desired manner.

Value Chain

Figure 2: The Value chain of the company

(Source: As created by the author).

Balanced Scorecard

The balanced scorecard is a useful management tool which thereby goes a long way in helping any business enterprise to ensure that it is successfully able to engage in the meeting of its business objectives and goes a long way in ensuring that any business enterprise is successfully able to engage in taking long term as well short term decisions. The balanced scorecard is often used by the firm in order to ensure if AiFAB is being successfully able to achieve its long term objectives or not. The four different perspectives of the balanced scorecard are as follows:

1. Financial perspectives

2. Customer perspectives

3. Internal processes perspectives

4. Learning and growth perspectives

Financial perspective



Improving margins

Amount spent on aluminium raw materials

Expansion of the revenue opportunities

The increase in the income from new products

Reducing costs

Increase in the overall profit

In order to ensure that AiFAB is successfully able to ensure that it is able to achieve all its financial objectives, the organization takes considerable steps as to see to it that they successful. The firm ensures that it is successfully able to improve its profit margins by reducing inefficiencies. Moreover. In order to reduce costs they form direct relations with the various suppliers and the different parties which will then allow the organization to make use of discounts and decreased costs of middlemen. The cost of quality is not considered to be something which AiFAB is largely concerned about.

Customer perspective

The customer perspective of the organization looks out for the customer goals of the organization with respect to the increase in its customer base or an increase in the popularity of the firm in the designated market. The customer perspective of the organization can be stated to be as follows



Increasing the market share of the company

The number of customers and the increase in them.

Improving upon the customer satisfaction aspect

The number of consumer complaints index and the number of high ratings achieved.

Improving services with respect to after sales support

The time taken to deal with the different consumers.


Customer satisfaction is often considered to be an important aspect for AiFAB to consider. This is because the customer service aspect is deemed to be one of the most important aspects which a company needs to consider with respect to the management as well as the extra designing services. AiFAB ensures that it engages in successful feedback procedure for the firm and that a survey is undertaken to evaluate their experience at large. The increase in the market share of the company is often considered to be an indicator of the increase in consumers.

Internal business processes

The internal business processes perspectives seeks to ensure that the internal operations and related business processes which are carried out by AiFAB are successfully able to ensure the success of the firm in the long run. If a business is successfully able to manage its internal business processes, they can ensure the efficiency of operations.



Efficiency of the consultation provided

The satisfaction of customers

Efficiency of the projects handled

The outcome of the project

Efficient sales support

Time taken to deal with returns.

The AiFAB makes extensive use of the parent company`s management system. It engages in a large number of business activities which ensure that it is successful able to provide the customers with the best offering. In order to be able to achieve its long term vision AiFAB needs to see to it that it brings about an effective operations management procedure which will ultimate lead to the achievement of its business objectives like the achievement of the customer satisfaction, reduction in costs, better quality and other aspects. It considers the efficiency of the internal processes as an adequate aspect because the firm is highly connected to the vision it has set for itself.

Learning and growth

The fourth balanced scorecard perspective is the learning and growth aspect whereby it can be considered to be the most crucial aspect of the organization. This means that all the organizations in the long run aim to ensure that they are required to acquire the required rate of growth which is considerable for the particular industry and is also able to see to it that they adopt the model of a learning organization.



Achieve employee training

Employee turnover rate( The amount of time which the company will take in order to ensure that the staff team changes)

Enable employee satisfaction

This can be measured with the help of turnover rates.

Creation of a proactive work environment

The average tenure of the service achieved by the employees and employee satisfaction index.

The AiFAB runs with the primary objective that it is successfully able to foster a conducive work atmosphere which will then go a long way in ensuring that the business is successfully able to achieve its work objectives. The firm in order to maintain the quality of the work which it provides to the customer and in order to successfully ensure that it is able to engage in successful relationships with the different employees would be required to engage in a good learning and development program. For this reason, the management team at AiFAB ensures that it is able to provide the different employees with exquisite training facilities which shall then enable the firm to achieve long term success. As stated earlier, AiFAB understands the importance of a successful learning and growth program whereby the creation of a positive environment shall ensure greater customer as well as employee satisfaction.

Product and Service Costing

The organization AiFAB tends to adopt the pricing strategy of a value based pricing method which means that the price of the product and the services which the company tends to offer to the different customers is based on the value which it generates to the customers by making the particular offering. Hence, value is deemed to be a relevant component which is used to determine the price made by the firm. Secondly, the different direct cost considerations are required to be successfully considered for the costing method. The direct costs involved in the business of the firm can be primarily considered to be as follows:

1. The costs of the raw materials: The primary raw material is the aluminium products and other related products which are required to be engaged in to complete the business activities in which the firm is largely involved in.

2. The wages and the retail staff involved: The wages and the other costs involved can be considered to be the direct costs of the organization.

3. The utilities and cost of manufacturing products: The utilities and other related costs can also be considered to be the direct costs.

The services which they tend to provide are based on the equipment’s and other services they provide. Hence, this service is deemed to be free of cost for the different consumers whereby the firm tends to charge the consultancy fees for the different customers. The cost of the wages of the employees can be considered to be an essential aspect of the direct costs of the firm because they are the ones who are carrying out the various operations important. Furthermore, the difference in prices between the discounted price of the customers and the normal price of the customers can be considered to be as an indirect cost. Moreover, the indirect costs are considered to be the other selling costs of the organization and office maintenance costs of the firm.

Cost- Volume- Profit Analysis

The cost volume and profit analysis is a tool which is primarily used to analyse the number of units which is sold by the organization in order to earn a considerable share of the targeted revenue or the whole revenue as a whole. In the given scenario, there can be taken to be two major methods of identifying the estimated volume change. The first method is the number of clients which the organization serves and the other is the number of units sold by the firm. As stated previously, the fixed costs which are required of the firm are the different costs like the cost of the equipment’s, the fees of the different employees and the advertisement as well as utility costs. Moreover, the variable costs of the organization can be considered to be the costs engaged in each project, the office bills, the other additional costs incurred and other such sources.

Hence, it can be rightfully stated that the main income of the firm can be taken to be the income from the customers like consultancy fees and the other related costs of designing and related extrusion.


The budgeting is often considered to be an essential aspect of the organization as it goes a long way in ensuring that the firm is successfully able to measure the manner in which it is able to align the expenses with the budgeted expenses. The budgets can be rightfully measured as the internal measurement tool which is used by the organizations in order to motivate the different managers and employees in the long term as well as in the short term perspective. The AiFAB tends to review its budget on a yearly basis whereby it engages in a forecast of the designated expenses of the organization as well as the income of the organizations in the long run. The long term budget of the brand is calculated on the basis of the number of projects to be taken in the long run. The primary budget comprises of the costs like the costs of the raw materials and other wages to be incurred and they also make use of the training costs.


The Sustainability can be considered to be an effective aspect of the organization and the firm believes that it is required to engage in sustainable works so as to ensure that the community benefits. Hence, the AiFAB organization tends to see to it that they engage in both issues relating to the social as well as the environmental aspects. The business tends to engage in the recycling as well as reuse of the different aluminium materials which it gets from the different suppliers as well as the inventory aspects. The organization in order to save paper tends to make use of computerized claiming whereby it submits online reports and other receipts. These measures have been largely taken in order to ensure that the business becomes environmental friendly. In addition to this, the social performance of the business tends to be measured in terms of the employee happiness and other aspects which exists in the organization and in terms of the quality of services provided to the different consumers.

However, there is one aspect which are required to be noted is that AiFAB is not sustainable in nature due to the materials involved as raw materials and other resources.


After the analysis, it can be stated that in order to achieve success in the long term of the organization, AiFAB has been performing considerably well at present, however, it is required to ensure that it needs to improve certain aspects of its operations so as to ensure that it is able to gain sustainable competitive advantage.

Improvement of the marketing strategy

Not much could be analysed about the marketing strategy which is adopted by the organization and hence, it can be largely recommended that AiFAB makes use of social media mediums as well as various business journals and other magazines in order to successfully advertise about the products and services. By engaging in a viable marketing strategy, the firm will be successfully able to ensure that it is able to engage in the right kind of business strategy for itself and also enable the different customers to be aware of the services being provided by the organization.

Financial performance

With respect to the financial performance of the organization, it can be stated that the organization has been adopting the correct strategy with respect to the performance of the firm and the other measures, however, it needs to ensure that it needs to adopt a rather strict strategy with respect to the different aspects of the organization. The organization will need to adopt a firm financial objective such as a target of achieving a growth of 10% every year or a target of achieving a customer base of around 5% every annum. Moreover, AiFAB needs to increase its alternate income strategies.

Employee recognition

AiFAB needs to ensure that it is able to engage in a good employee appraisal and employee recognition plan. With the help of this, the organization will be able to engage in a positive work place environment and this shall thereby go a long way in ensuring that the organization can successfully ensure that the turnover rate increases and moreover, the employees will get motivated and contribute towards the welfare of the firm at large ( 2018).

Customer management

The customer management can be stated to be an essential aspect of the organization. If an organization is not able to manage its customer base will then it will not be able to engage in a long term goal achievement. Hence, AiFAB can then use a customer relationship management information system so that the customer relationship with the firm can be successfully improved.


Therefore, from the given analysis it can be rightfully stated that the organization under Aluminium, named AiFAB has been performing considerably well and has created a considerable niche market for itself. The aluminium industry has been performing considerably well and hence, for this purpose, AiFAB has been making a good position for itself. However, the competitive forces as present in the industry are quite large in number and hence, AiFAB will be required to ensure that it is able to make the right decisions. The report highlighted the status of the Aluminium market in Australia and then highlighted the business activities of the organization. This was followed by the analysis of the balanced scorecard, costing techniques, Cost and revenue analysis along with the budgeting techniques. The latter half of the report presented certain suggestions for the same.


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