BuyFindarrow_forward

Managerial Accounting: The Corners...

7th Edition
Maryanne M. Mowen + 2 others
ISBN: 9781337115773

Solutions

Chapter
Section
BuyFindarrow_forward

Managerial Accounting: The Corners...

7th Edition
Maryanne M. Mowen + 2 others
ISBN: 9781337115773
Textbook Problem
79 views

Princeville Paradise Ice Cream Shoppe manufactures and sells premium ice cream in a unique Hawaiian environment. Princeville Paradise’s management performed a stakeholder engagement exercise to identify its most important stakeholders, given its strategy to “Provide tourists and residents with the best ice cream experience in the islands.” The exercise revealed that Princeville Paradise’s top four stakeholders are customers, employees, local suppliers, and regulators.

Required:

  1. 1. CONCEPTUAL CONNECTION For each stakeholder, list and briefly describe a risk that the stakeholder poses to Princeville Paradise achieving its strategy.
  2. 2. CONCEPTUAL CONNECTION For each risk described in Requirement 1, list and briefly describe one nonfinancial performance metric that Princeville Paradise management should use to measure how effectively this associated risk is being managed.
  3. 3. CONCEPTUAL CONNECTION For each nonfinancial performance metric in Requirement 2, list and briefly describe one financial performance metric that Princeville Paradise management should use to measure in financial terms (i.e., to investors) how the management of the associated risk ultimately affects the company’s financial performance.

To determine

Provide a possible risk that the given stakeholders can cause, also provide financial and non-financial performance measure for assessment of such risk.

Explanation

Enterprise Risk Management:

Enterprise risk management is a process in which, business risks are maintained at a level decided by the management, so that the strategic plans of the organization are achieved. That is, risks are maintained at a level that satisfies both the risk category as well as objectives of the organization.

Possible risk and the financial and non-financial performance measure, for assessment of such risk in relation to the given stakeholders are provided as follows:

StakeholdersRiskNon-Financial Performance MeasureFinancial Performance Measure
CustomerWhether or not the product would be accepted by the tourists and residentsA survey that requires tourists to answer whether or not they recognize ABC as an ice cream brand. Percentage of tourists that answers affirmatively would be a non-financial performance measure for the acceptance of the brand in the island.Number of sale transactions per tourist visits. By comparing number of transactions with number of tourists in the island in a given period would provide details regarding popularity and acceptance of the product in the area...

Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Additional Business Solutions

Find more solutions based on key concepts

Show solutions add

Explain the relationship among saving, investment, and net capital outflow.

Brief Principles of Macroeconomics (MindTap Course List)

In the text, we discussed using the discounted dividend model to estimate a stocks intrinsic value. To keep thi...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)