Company: Curragh (metallurgical coal producer and supplier)
Drivers of change | Resulting organizational challenges | Implications for management accountant’s role |
Economic, environmental & geopolitical volatility | - As a worldwide coal trading company, the organization have to monitor on the price of coal in different country as well as the different currency exchange rate to ensure have the best deals always
- Pursue/show consumers/customers that the organization is environmental friendly and bring no harm to the society/environment and aware of any changes in environmental regulations
- Aware of the political issue between countries ex. annexation issues due to breaking laws
| - According to Ansoff strategic accounting system (Keith & Frans), organization in an expanding environment turbulence level should have run competitors analysis, strategic variances report and capabilities analysis frequently
- Take the role to measure the environment cost. Ex welfare/campaign cost, recoverable cost and et cetera
- Consult with agent or solicitors before take any trade
|
Technological advancements and Breakthroughs | - New mining equipment that help boost the efficiency or quality of coal
| - Calculating the opportunity cost between cost of acquire the machine and level of efficiency/quality/profitability the machine can bring
|
Demographic Shift | - As a coal exporter, it involve trading/hiring different people from different countries and speaking different languages
| - Manage to consolidate the business process. Using same system with different language available
|
| |
|
Company: Insurance Australia Group (IAG)
Drivers of change | Resulting organizational challenges | Implications for management accountant’s role |
Economic, environmental & geopolitical volatility | - Select high potential customers that can afford for the insurance fee payment(usually developed countries)
- High competition business as there are so many brands, how to be the most extraordinary ones?
- Challenges when setting regulation comply to different countries regulation
| - Customers analysis – sell insurance to country that pay high fees
- Competitors analysis – always aware of any new packages/services in the market
- Consult with professional
- Scenario planning as any surprising event occurs ex, high demand for claims
|
Technological advancements and Breakthroughs | - More convenient fees payment method
- In touch with client portfolio through monthly service call
- Provide self-auto login system to simplified the claim system (Bank In Directly)
| - Record and analysis the preference of customers help improve customer relationship management and bring economic value
|
Demographic Shift | - It is obvious that the mostly vulnerable persons will buy but should try to target other different segment of people
| - Identify the best value option for other different segment of people
|
| | |
Both of them are significantly differences organization as one is selling products and another is selling services. In my personally view, I think Curragh will be more concern with the environmental factor as in nowadays consumers start to concern about business sustainability and environmental protection issues especially in mining industry as it always gives the impression of gaining high profitability without “paying” back to society. However, for IAG consumers will concern more on Technological advancements and Breakthroughs factor that help enhance the Technological advancements and Breakthroughs service quality by keep the contacts with clients easily and convenient.
