Individual assignment Start Assignment • Points 40 • Submitting a file upload Background BNE Pty Ltd is a specialty frozen-food processor located on the outskirts of Melbourne. Since its founding in 2015, BNE has enjoyed a loyal clientele that is willing to pay premium prices for the high-quality frozen foods it prepares from specialized recipes. Over the past 12 months, the company has experienced a substantial increase in sales within Australia and has also started to field enquiries from overseas wholesalers. To manage this increase in activity, Nick Williamson, the company’s chief executive officer, has restructured its operations and created a more formal divisional structure with four divisions: • Purchasing • Processing • Sales • Administration In addition, because of his focus on the bottom line, he has streamlined the budget process to only include himself and the company’s chief financial officer, Lynette Reid in determining both company level and divisional targets (whether revenue or cost). Staff within each division would be paid bonuses based purely on the financial performance of their division against their divisional targets. Last month Judy Evans, originally purchasing manager, and now head of the Purchasing Division spoke to Nick and advised him that there was a general level of unrest from the other Divisional heads regarding the new budgetary process, and the lack of consultation taking place. She also indicated that concerns regarding the arrangements for bonuses. Required Assume you are an external consultant, and you have been engaged by Nick Williamson to write a report on BNE. In that report: 1. Identify the style of budgeting being used by BNE, the impact of this style of budgeting and provide options for other style(s) for Nick to consider. 2. Describe the pros and cons of having a reward system based purely on the performance of the division? How else could a reward system be structured? 3. Explain why a focus on financial performance measures can be negative. Identify one non-financial performance measure each of the divisions could include and describe why it be useful to do so. The report should be set out with the three sections (a), (b) and (c) clearly shown. You should carry out independent research to complete the assignment and cite any articles that support the material and views you present. Use Harvard style referencing. Your report must be typed using 12-point font, 1.5 line spacing and 2.5cm margins on all sides, with a maximum length of 1,000 words (excluding executive summary, references, appendices, tables, etc.). Refer to the UTS Business School Guide to Writing AssignmentsLinks to an external site. on recommendations and suggestions on how to structure your report. Marking notes Parts (a), (b) and (c) are each worth 10 marks. In addition, presentation and communication are worth 10 marks combined. This gives a total mark of 40 for the report. Your report should address each of the questions posed equally. Rubric Some Rubric Some Rubric Criteria Ratings Pts This criterion is linked to a Learning OutcomePresentation & Communication i.e. report body well structured, correct length, properly referenced, information flows logically, no grammar/spelling mistakes. 10 pts Well above acceptable 7.5 pts Above acceptable 5 pts Acceptable 2.5 pts Below acceptable 0 pts No Marks 10 pts This criterion is linked to a Learning OutcomePart A Identified budgeting styles; Discuss implications of budgeting styles 10 pts Well above acceptable 7.5 pts Above acceptable 5 pts Acceptable 2.5 pts Below acceptable 0 pts No Marks 10 pts This criterion is linked to a Learning OutcomePart B Discussed pros and cons of reward system; Provide alternative reward system structure 10 pts Well above acceptable 7.5 pts Above acceptable 5 pts Acceptable 2.5 pts Below acceptable 0 pts No Marks 10 pts This criterion is linked to a Learning OutcomePart C Negatives of focus on financial discussed; Identify and discuss 4*1 non-financial measures 10 pts Well above acceptable 7.5 pts Above acceptable 5 pts Acceptable 2.5 pts Below acceptable 0 pts No Marks 10 pts Total Points: 40
