Case Study Of Kitchen Best Appliance Company

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To: Mr. Henry Chan, Chief Executive of Kitchen Best Appliance Company Ltd
From: KC Lam, Senior Consultant at Deloitte Consulting
Date: 30 November, 2017
Subject: Recommendations for Kitchen Best
1. Introduction
This report proposes recommendations to raise Kitchen Best’s competitiveness. It identifies the root causes of the problems that Kitchen Best Appliance Company Ltd is facing and will suggest actions to take with management system and quality control policy.
Due to fierce competition and increase number of new entrants, you are concerned about the effectiveness of the existing management system and quality control policy, as these can result in losing current and potential customers. Therefore, you invited my team to investigate the
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Findings and Analyses
Over the past years, Kitchen Best had expanded the headcount at the company from 80 to 1500. As the company is becoming larger and larger, company become more complex, procedures and system controls need to be reviewed periodically. Unlike how procedures may be based on personal preference when Kitchen Best is still a start-up. The absence of guidelines and policies on customer relationship leads to increase in unnecessary expenses.
Employees use kickbacks and gift-giving to help facilitate and generate new business. They were able to use fake invoices to claim reimbursement of entertainment expenses from wining and dining expenses or entertainment fee provided to suppliers and customers. It is difficult to adjust and estimate expenditure with no maximum control on gifts. Which reflects Kitchen Best flaws in accounting control system. Meanwhile, company allowed the inappropriate behaviour as you turned a blind eye to these practices, employees could easily have had the false impression that the company took no stance on such actions. This will increase the unnecessary expenses for the company, money may be used to maintain small profit margin business rather than investing into core business, inhibiting business from growing into a competitive
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