2hooward Street Jewelers Case

The control structure is the means used to ensure that organization members are doing what they are supposed to do; it describes the nature of and methods for communication in an organization. Due to lack of a structural job design and absence of coordination within departments and lack of autonomy employees are irresponsible and do not perform the task to

1. To have a strong internal control system, a business must have good administrative controls. Administrative controls include: A. B. C. D. the reconciliation of the bank statement. the accuracy of the recording procedures. assessing compliance with company policies. maintenance of accurate inventory records.

Internal control is one of the integral parts of an organization. It is a system which controls different types of risks,

Bed, Bath and Beyond (BBBY) currently has $400 million more in cash than they need for ongoing growth and operations requirements. While the company is financially sound analysts and investors worry about the company’s capital structure decisions. Investors do not want to see that much cash on the books and worry that the current capital structure is not the most effective for the future. They prefer that BBBY change their capital structure by paying out excess cash and issuing debt. This could allow BBBY to improve their return on equity and raise earnings per share. Given the low interest rates available it seems like the perfect time for BBBY to add debt to its capital structure. Until now they

Overall Strength: in general, the article provides structure to a concept that is very intangible by: (a) describing the nature and the functions of control; (b) segregating the MCS into categories: core control system, organizational structure, and organizational culture; (c) illustrating how to apply the control model (satisfied my approach) (d) provides a basis for designing and evaluating the system. The manner, in which the model is presented, with its use of figures, further emphasizes the structure of the model. See below on further emphasis on parts (a) -(c).

The objective of the fair and square strategy was to simplify JC Penney’s pricing structure by dropping the current high-low pricing strategy and changing it for an “every day low price” strategy. In theory, this would make pricing simple both for JC Penney and the consumer, with less sales and promotions and the associated costs.

During this paper we will analyze how the department store industry has evolved and more important how companies are managing new strategies to remain competitive. Moreover we will use the case of JCPenney as a main focus to see how successful their strategies are. To provide a good analysis, we first need to understand how the industry has evolving and what the major companies like JCPenney are doing to continue in the industry.

The alternatives highlighted above will likely put an end to JCP’s managerial and technological issues. These alternatives are recommended based on the company’s strengths and opportunities, and in large part, based on the specific issues affecting the retailer. All these alternatives are could be realized at little or no cost. The alternatives however require that JCP starts thinking out of the box. For example, it will cost little or no money for this giant to hunt for a an experienced CEO. Instead of shopping around for a ‘ready made’ CEO, if JC Penny has it own standards of doing business, it only need to promote one of its top experienced managers to run the company.

Sunbeam is an old established brand of appliance-maker. Their growth was too slow and they want to increase their profit, so they hired Al Dunlap as their leader to be the savior. Aggressive Reconstructive plan is Al Dunlap style. He put shareholder in the first place and emphasized the cost cut-cutting in the company’s operation. Under his leadership and management, Sunbeams’ strategy is increasing their profit and rapid their growth through cutting the exceed cost. At the same time, focused core business, develop new products and expanding overseas markets.

Duty segregation prevents fraud by avoiding interest conflict. Employees, for example handling both Accounts Receivable and Accounts Payable, face an ethical dilemma between personal benefit and company interest. They could pay personal bills with company account by manipulating fake transactions. Segregating duties limits employees’ access to company asset. However, without segregation, you could lose the sight of cash flow and suffer a large

Inward administration control is for the most part characterized as the procedure affected by the an element's administration, top managerial staff and other top faculty, intended to give discerning confirmation as to the accomplishment of goals in productivity and adequacy of operations, consistence with relevant arrangements, laws and directions and unwavering quality of budgetary reporting. Inward control can help an element accomplish its execution and gainfulness targets and avoid loss of assets (Cheng, Dhaliwal and Zhang, 2013). It goes far in guaranteeing trustworthy budgetary reporting consequently evading harm to an element's notoriety and different results and helping a substance to achieve its objectives and stay away from undesirable

Tiffany should go public since an IPO would be able to bring in fresh equity to fund growth, and to establish a relatively liquid and efficient market for the company 's shares.

As the authors Garrison, Noreen, and Brewer pointed out in the textbook, for managers, in this case a coach, is important to understand the concept of internal control as is the process that provide a reasonable surety that the goals of the company or team are being achieved. (p.24). Within the internal controls are two types of controls, such as: preventive control and detective control.

The framework describes internal control as a process designed to provide reasonable assurance regarding the achievement of objectives in the following categories:

“The control environment sets the tone of an organization, influencing the control consciousness of its people. It is the foundation for all other components of internal control, providing discipline and structure.” The Committee of Sponsoring Organizations of the Treadway Commission (COSO) published the Internal Control–Integrated Framework in 1992. As summarized above one can see the importance of the implementation of an effective control environment, as it sets the foundation for the other 4 components of internal control. The control environment is made up fundamental smaller components. The ones that were particularly relevant to BMIS are the use of board of directors and audit committee, management philosophy and operating style, and human resource policies and practices. If management doesn’t prioritize control, then the rest of the organization will not put precedence on following policies and procedures either. This was clearly evident at Bernard L. Madoff Investment Securities LLC (BMIS), and ultimately led to their downfall.