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ACC 206 Week 4 Assignment The balance sheet of Watson Company as of December 31, 20X1, follows Answer

CC 206 Week 4 Assignment
Please complete the following exercises below in either Excel or a word document (but must be single document). You must show your work where appropriate (leaving the calculations within Excel cells is acceptable). Save the document, and submit it in the appropriate week using the Assignment Submission button. Actual Manufacturing Variable Overheads Expenditure      508400
1. Comprehensive budgeting
The balance sheet of Watson Company as of December 31, 20X1, follows. Actual hours   x   Standard Variable Overhead Rate per hour –      359800
WATSON COMPANY      148600
Balance Sheet
December 31, 12X1 Idle Capacity
Assets   359800
Cash $4,595   1800000
Accounts receivable 10,000
Finished goods (575 units x $7.00) 4,025
Direct materials (2,760 units x $0.50) 1,380
Plant & equipment $50,000
Less: Accumulated depreciation 10,000 40,000    359,800
Total assets $60,000    150,000   150000
Liabilities & Stockholders’ Equity    509,800
Accounts payable to suppliers $14,000    508,400
Common stock $25,000    1,400  Favorable
Retained earnings 21,000 46,000
Total liabilities &. stockholders’ equity $60,000    (21,500) Unfav
The following information has been extracted from the firm’s accounting records:
1. All sales are made on account at $20 per unit. Sixty percent of the sales are collected in the month of sale; the remaining 40% are collected in the following month. Forecasted sales for the first five months of 20X2 are: January, 1,500 units,- February, 1,600 units; March, 1,800 units; April, 2,000 units; May, 2,100 units.
2. Management wants to maintain the finished goods inventory at 30% of the following month’s sales.   5700 Favorbale
3. Watson uses four units of direct material in each finished unit. The direct material price has been stable and is expected to remain so over the next six months. Management wants to maintain the ending direct materials inventory at 60% of the following month’s production needs.
4. Seventy percent of all purchases are paid in the month of purchase; the remaining 30% are paid in the subsequent month.
5. Watson’s product requires 30 minutes of direct labor time. Each hour of direct labor costs $7.
Instructions: -14400 Unfav
a. Rounding computations to the nearest dollar, prepare the following for January through March:
1) Sales budget
2) Schedule of cash collections
3) Production budget
4) Direct material purchases budget
5) Schedule of cash disbursements for material purchases
6) Direct labor budget
b. Determine the balances in the following accounts as of March 31:
1) Accounts Receivable
2) Direct Materials
3) Accounts Payable
2. Basic flexible budgeting
Centron, Inc., has the following budgeted production costs:
Direct materials $0.40 per unit
Direct labor 1.80 per unit
Variable factory overhead 2.20 per unit
Fixed factory overhead
Supervision $24,000
Maintenance 18,000
Other 12,000
The company normally manufactures between 20,000 and 25,000 units each quarter. Should output exceed 25,000 units, maintenance and other fixed costs are expected to increase by $6,000 and $4,500, respectively.
During the recent quarter ended March 31, Centron produced 25,500 units and incurred the following costs:
Direct Materials $10,710
Direct Labor 47,175
Variable factory overhead 51,940
Fixed factory overhead
Supervision 24,500
Maintenance 23,700
Other 16,800
Total production costs $174,825
a. Prepare a flexible budget for 20,000, 22,500, and 25,000 units of activity.
b. Was Centron’s experience in the quarter cited better or worse than anticipated? Prepare an appropriate performance report and explain your answer.
c. Explain the benefit of using flexible budgets (as opposed to static budgets) in the measurement of performance.
3. Straightforward variance analysis
Arrow Enterprises uses a standard costing system. The standard cost sheet for product no. 549 follows.
Direct materials: 4 units @ $6.50 $26.00
Direct labor: 8 hours @ $8.50 68
Variable factory overhead: 8 hours @ $7.00 56
Fixed factory overhead: 8 hours @ 2.5 20
Total standard cost per unit $170.00
The following information pertains to activity for December:
1. Direct materials acquired during the month amounted to 26,350 units at $6.40 per unit. All materials were consumed in operations.
2. Arrow incurred an average wage rate of $8.75 for 51,400 hours of activity.
3. Total overhead incurred amounted to $508,400. Budgeted fixed overhead totals $1.8 million and is spread evenly throughout the year.
4. Actual production amounted to 6,500 completed units.
a. Compute Arrow’s direct material variances.
b. Compute Arrow’s direct labor variances.
c. Compute Arrow’s variances for factory overhead.

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FIN 515 Managerial Finance Week 6 Second Course Project Answer

Second Project
The purpose of this project is for you to have some practice working with financial concepts in the real world. This will involve integrating some material from throughout the course. The project will also involve the development of your own approach to doing the work. The project does not provide a step-by-step procedure for you to follow.
Your task is to determine the WACC for a given firm using what you know about WACC as well as data you can find through research. Your deliverable is to be a brief report in which you state your determination of WACC, describe and justify how you determined the number, and provide relevant information as to the sources of your data.
As you recall, the formula for WACC is
rWACC = (E/E+D) rE + D/(E+D) rD (1-TC)
The formula for the required return on a given equity investment is
ri= rf + βi * (RMkt-rf)
RMkt-rf is the Market Risk Premium. For this project, you may assume the Market Risk Premium is 4% unless you can develop a better number.
rf is the risk free rate. The YTM on 10 year US Treasury securities is a good approximation.
You may assume a corporate tax rate of 40%.
One good source for financial data for companies as well as data about their equity is By looking around this site, you should be able to find the market capitalization (E) as well as the β for any publicly traded company.
There are not many places left where data about corporate bonds is still available. One of them is To find data for a particular company’s bonds, find the Quick Search feature, then be sure to specify corporate bonds and type in the name of the issuing company. This should give you a list of all of the company’s outstanding bond issues. Clicking on the symbol for a given bond issue will lead you to the current amount outstanding and the yield to maturity. You are interested in both. The total of all bonds outstanding is D in the above formula.
If you like, you can use the YTM on a bond issue that is not callable as the pre-tax cost of debt for the company.
Write a two or three page report that contains the following elements:
1. Your calculated WACC.
2. How data was used to calculate WACC. This would be the formula and the formula with your values substituted.
3. Sources for your data.
4. A discussion of how much confidence you have in your answer. What were the limiting assumptions that you made, if any.


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On January 1, 2011, John Doe Enterprise (JDE) bought a 55% interest in Bubba Manufacturing, Inc. (BMI) Answer

On January 1, 2011, John Doe Enterprise (JDE) bought a 55% interest in Bubba Manufacturing, Inc. (BMI). JDE paid for the transaction with 1,371,276 cash and 228,546 shares of JDE common stock (par value $1.00 per share). At the time of the acquisition, BMI’s book value was 7,756,849.
On January 1, JDE stock had a market value of $14.90 per share and there was no control premium in this transaction. Any unidentifiable consideration transferred over book value is assigned to good will. BMI had the following balances on January 1, 2011.
Book Value Fair Value
Land 777,056 1,165,584
Buildings (seven-year remaining life) 1,234,148 1,554,112
Equipment (five-year remaining life) 1,691,240 1,508,403
For internal reporting purposes, JDE employed the equity method to account for this investment.
a. Prepare a schedule to determine goodwill and the amortization and allocation amounts.
b. Verify (show calculation) that the Investment in Bubba account balance on 12/


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Provide a synopsis of the Trophy Project case study. Highlight your observations about the project Answer

The Trophy Project (Chapter 5, pp 264 – 266)

  • Provide a synopsis of the Trophy Project case study. Highlight your observations about the project.


Answer – The Trophy Project was project that was contracted out by a customer to a company. There was a project manager assigned to the project, with resources assigned to work on the project. However the project was always behind schedule due to work not being completed as assigned, due to project resources working on other projects. Even though the project manager had ownership and was responsible for the Trophy Project he did not have sufficient authority of control over people assigned to the project who were reporting to and hence worked as per directions of the functional manager. Six months into the project, the customer realized that the project was behind schedule and tried to intervene and solve the project by bringing additional resources to work on a project that would help identify issues on the project. This project was not only unsuccessful but also diverted the focus of the project manager from the Trophy Project that was behind schedule further more. There were many things attempted to bring the project back on track, managing it more closely, the customer having their representative onsite etc, however non of them helped as the functional managers till did not provide the resources that were required for the project. All this led to the project manager being blamed for the project debacle, being replaced and the project being completed a year behind schedule with a cost overrun of forty percent.


  • Did the project appear to be planned correctly? Why or why not? Relate your answers to the expected documents for proper project planning.


Answer – In my opinion, the project was not planned correctly and could have been managed much better had there been a good plan. Given that resources were needed from various departments to complete the project, there must have been expectations right from the start on how much of their time and involvement is needed for the project and ensuring that they are working full time on the project. In regards to expected documents, there seems to be no project charter and project plan against which the project was being tracked, along with regular weekly review meetings until six months into the project. Presence of these documents would have ensured that there is proper planning in place, with issues being identified and resolved proactively, the absence of which lead to project failure.


  • Citing evidence from the case, do you think functional management teams were committed to the project? What evidence do you have from the case study to substantiate your views?


Answer – The functional management teams were not committed to the project and were not interested in ensuring that the project objectives were accomplished as planned. Right from the start, the functional managers were diverting the project resources to other project that led to the project being delayed. Even when it was known to everyone that the project is behind schedule, they did not help contribute positively and continued to divert resources to other tasks that led to the project slipping even further.


  • Citing evidence from the case, do you think senior management managers were supportive and committed? What evidence do you have from the case study to substantiate your views?


Answer – In my opinion, the senior management managers were not supportive and committed to the project, to the extent they should have been to ensure that the project is a success. There was no proper senior management involvement for six months into the project, and even after that they came up with solutions that were not effective or directly addressed the problem. The senior management should have tracked the project closely, and should have ensured that there is functional manager support and dedicated resources to work on the project, the absence of which led to project failure.


  • What would you have done differently?


Answer – If I were the project manager, I would have spoken to the project sponsor and the functional managers’ right at the start and also during the project to ensure that the resources are working full time and dedicatedly on the project. I would have weekly status review right from the project start that would ensure that problems can be addressed as soon as they come up rather than when they become big. I would also use the project plan, Gantt charts and other tools to track the project on a regular basis that would show the health on a regular basis that can be used for tracking the project. If functional managers were unsupportive, I would approach the management help them ensure that resources are available for the project. All this would have helped increase the project visibility, highlight and address issues proactively that could have led to better project execution

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Let’s talk about the performance review Nick received from Warren. Would you accept the review if you were Nick? What would you want to be different and why Answer

Let’s talk about the performance review Nick received from Warren. Would you accept the review if you were Nick? What would you want to be different and why?


Warren used a performance appraisal system primarily based on casual observation and impressions rather than on hard performance criteria using both subjective and objective criteria’s. Warren should have reviewed all aspects of Nick’s performance over the past year so that he was aware of areas where Nick was doing well and areas where he needs to improve. It would have been very helpful if Warren had written a list of issues he wanted to discuss with Nick in order to add structure to the interview. He could also have included some concrete examples of areas where Nick was doing well and areas where he needs to improve. Warren should have identified specific areas for improvement accompanied by a set of goals and a timeline for meeting them. This approach would have given Nick a correct assessment of his abilities and areas needing for improvement. A good supervisor will give feedback all along and help an employee develop along the way.

Nick should not accept the review, because that review did give accurate information regarding his performance. If I were Nick I would have asked what could I make improvements on. Warren didn’t provide any feedback. Nick knew before going into the meeting that he had not performed to the best of his ability. He admitted to Gail that he would sometimes ignore work issues due to being bored and preoccupied with something else. Warren should have had work documents that Nick had done within the past year to show him what he was good at and the areas that needed improvement. Nick will not be able to improve because he doesn’t know where he needs improvement. Warren is not an effective manager and is definitely not setting the company up for growth by allowing employees to think they are succeeding.

There’s nothing worse than being evaluated by a supervisor who doesn’t actually observe your work. A slack performance review is not doing anyone any favors. As long as the supervisor is good at giving constructive criticism, and the employee is accepting of this criticism, then improvements can be made. Any manager appreciates when an employee listens to their recommendations and tries to improve. Even if the improvement doesn’t go as far as the manager was hoping for, it shows that the employee is taking the job seriously and trying to do better. During the review process warren didn’t have an outlined for the peer review process. Warren should have been prepared with some notes on what things were accomplished by nick as well as what has not been completed. He also needed to point out areas where he did well and areas that he could have been doing better. List the areas where he needed improvement as well as to focus on, added with some deadlines. Warren should have given Nick an outline of what he needs to work on before the next review.


To be completely honest if I was in Nick’s position I would accept the performance appraisal without any hesitation. The biggest thing that was missing in this example of an performance review was a formal structure process so everyone knows what to expect. Feedback with regards to performance should be a continual conversation between supervisor and subordinates to ensure everyone working together. I would have like to see Warren address his concerns with Nick performance in a Mid-year review outlining a list of things that needed improvement and some target goals. A lot can happen in a year so it is important to record your own individual success,accomplishments or any challenges in preparation for a performance review. After watching the video of Nicks’ review I would have to think that Warren is either really bad at business, is bias to Nick and has shown some favoritism ( we have not seen anyone else’s review), or simply doesn’t know how to appropriately discipline his employee for making huge mistakes. Nick didn’t just come in late too many times, he let the server crash, that is big and not only once but twice that the video speaks of. I would suggest Warren go to a class on management and learn some new techniques to manage all his employees.

There were two issues in this situation. Warren was not honest or ethical with Nick in his evaluation. Warren presented Nick with a halo evaluation because he did not want to risk having Nick become upset with him. This showed weakness on Warren’s part as a manager. I agree with my classmates there was no structure within the evaluation to give Nick a true evaluation of his job skills which was not fair to Nick or his fellow employees. Nick accepted the evaluation with pleasure, but true fully knew that he was undeserving of a review of that nature. I feel Nick should have spoke up indicating he had not performed his best this past year but he would put forth an effort to be more diligent going forward. Instead Warren handed Nick a license to be non productive for another year by agreeing with his performance. Warren should have given Nick a more detailed review explaining his strengthens as well as weakness. Without this information Nick won’t be able to make improvements. Nick also should have asked questions because without Warren explaining and Nick not asking any questions that gives off the impression that he accepts and understands everything.

Researchers have long known that any successful team is focused on performance. The team has a well-defined set of goals and agreed-upon methods for achieving them. What’s more, members hold one another accountable for the performance of the whole group. These characteristics distinguish a true team from a conventional department.

First of all that was a poorly given review. I have not been given many in my life but that is not at all how they should be given. Warren gave absolutely no feedback and even continued to joke with Nick when it was not a joking matter. Warren should have been completely honest with Nick to make sure he was given the chance to fix those things he is not doing appropriately. He should be given a chance to fix things but should be placed on a probationary time to get them fixed or he would have to be let go. Nick is so distracted at work and very unorganized and like he said he made some big mistakes. I would have asked questions if I was Nick knowing I had made such mistakes. I also would want to know what the numbers were based on and the scale in which was being measured. The way Warren gave the review you could tell he wanted to tell Nick like it is but did not want to hurt his feelings. This is a huge problem in that it is important to have productive employees working for a company to succeed and if they are not carrying out their job duties fully then they should be terminated and new individuals hired who are willing to get the job done and done right.

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What role has technology had in order processing? What are some of the key technology element Answer

What role has technology had in order processing? What are some of the key technology elements that you see in your daily shopping? What do you think will be the next big technology development in order processing?

Advances in technology have allowed most firms to computerize many aspects of their order processing systems. Order forms can be designed so that the use of computers by both the customer and the vendor is greatly facilitated. Similarly, the billing of customers is increasingly done through computerized and electronic networks. Technology can be used to reduce the order cycle time by removing some of the steps involved in order checking. Companies can adopt technology which can have important implications on order cycle effectiveness and efficiency as well as on customer satisfaction. Incomplete or inaccurate orders can negatively affect customer satisfaction and increase costs. However, checking all orders for completeness and accuracy adds costs and time to the order cycle. EDI orders are allowed to bypass checking for completeness and accuracy Companies can use the information technology to expedite order checking process. Order picking and assembly has been greatly affected by advances in technology such as handheld scanners, radio-frequency identification (RFID), and voice-based order picking. Another order picking technique that has grown in popularity in recent years is pick-to-light technology, in which orders to be picked are identified by lights placed on shelves or racks. Advances in picking technology, such as pick to light, generally result in higher pick rates and fewer picking errors, along with reduced training time and reduced levels of employee turnover.



Murphy, R. & Wood, F. (2008). Contemporary Logistics (9th ed.). Upper Saddle River, NJ: Pearson Prentice Hall.



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Discuss the concept of managing utilization. Incorporate into your discussion the role of the provider Answer

Discuss the concept of managing utilization. Incorporate into your discussion the role of the provider and case management. Describe the differences in managing the utilization for acute-care patients versus chronic-care patients.

There are two(2) primary means of measuring utilization are:

  1. Physician-Utilization Data – with this type of data, there are no set standards for reporting data on referral utilization. Unfortunately, the process of counting only the initial referral or authorization often results in the omission of a large portion of actual utilization. When using hospital-utilization data, a choice must be made as to what will be measured, and that measurement must be precise.
  2. Hospital-Utilization Data – this data may vary by geography and by practice.

“Hospital utilization has been decreasing for many years, though there has been a rise in the admission rate for individuals over the age of 65. Much of this is a result of the effect of managed care over the past few decades as well as advances in medical technology that enable care that once required an inpatient stay to be delivered in the outpatient setting. Furthermore, decreasing hospital capacity also has a strong effect because fewer beds mean tighter criteria for admission. In all events, the net result is that when patients are admitted to the hospital, they are considerably sicker than they were 20 years ago, and they require concomitantly higher levels of clinical resources.”

(Kongstvedt, p. 137)

PCP plays a key role in the utilization-management system. For example, if a member wants to be seen by a physician, he or she may visit a PCP without any barriers to access. However, if the patient requires the expertise of a specialist, the member must obtain authorization from the PCP before scheduling any specialty-care appointments. If the member does not obtain authorization, the plan has the right to deny payment for unauthorized services (an HMO plan), or it may offer a lower level of payment (a POS plan). The process of authorization is specific to each managed-care program. For example, some systems allow only one visit per authorization. These systems, called single-visit authorization systems, provide the highest degree of utilization management. Patients with a chronic disease may be better served by the specialist versus the PCP. In these circumstances, the specialist may act as a PCP.”

Utilization management is the “evaluation of the appropriateness, medical need and efficiency of health care services procedures and facilities according to established criteria or guidelines and under the provisions of an applicable health benefits plan,” according to Wikipedia source. This type of review involves case analysis and a follow up of procedural recommendations.


Utilization management describes proactive procedures, including discharge planning, concurrent planning, pre-certification and clinical case appeals. It also covers pre-emptive processes, such as concurrent clinical reviews and peer reviews, as well as appeals introduced by the provider, payer or patient. Utilization management is prospective and intends to manage health care cases efficiently and cost effectively before and during health care administration, as opposed to utilization review that are more retrospective and consider whether health care was appropriately applied after it was provided.

Evidence demonstrates that a high degree of unwarranted variation exists in the practice of medicine: patients may be overtreated, undertreated, or treated with the wrong interventions. This unwarranted care can be further categorized into three situations:

  • Use or lack of use of evidence-based medicine: In this situation, a care plan is proven to be effective, and there are no significant “trade-offs.” For example, use of a beta blocker for patients post heart attack varies widely,1 although it should be nearly 100% because clinical contraindications are rare.
  • Preference—sensitive care: In this situation, a choice is involved (trade-offs) because at least two valid alternative treatments are available. For example, in southern California, a patient is six times more likely to have back surgery for a herniated disk than in New York.*
  • Supply—sensitive care: In this situation, the more available a treatment is, the more often it is used. For example, per capita spending per Medicare enrollee in Florida is more than twice that seen in Minnesota.2

Managing utilization involves managing the processes of care, which requires a system approach that coordinates services, eliminates redundancy in care delivery, and makes use of alternatives to traditional methods of meeting healthcare needs. On the caregiving level, internally developed benchmarks illuminate efficient or unneeded practice patterns, hospitalist programs help contain inpatient costs, and standard protocols and disease state management help to maintain expected measurable outcomes. Wisely managing patient access to care, relying upon case managers to oversee catastrophic care, assessing high-risk senior citizens and promoting their and other patients’ relationships with social service agencies, and implementing patient education and prevention programs all can be coordinated within the managed care system. There for chronic-care patient require more day to day care where acute is more immediate assistance.

Utilization Management is one of those areas were everyone thinks they know exactly what it is but really can’t give a full description. UM managers generally have a very stressful job and can vary based on where they work.

Discuss the concept of managing utilization. Incorporate into your discussion the role of the provider and case management. Describe the differences in managing the utilization for acute-care patients versus chronic-care patients.

Management utilization is a program that is focused on reducing the number of inpatient admissions, eliminating unnecessary hospital days, reducing unnecessary procedures, and reducing the need for specialist referral. The role of the provider can be anywhere from collecting data regarding diagnosis, required services, test results, review of those criteria’s, comparison of medical records, physician referrals, needs, and the critical nature of the patients. The role of the case management is to allow divergent healthcare professionals to manage and resolve issues surrounding patients. These tasks include assessment, planning, facilitation, advocacy, and recommendations.

The difference in managing the utilization for acute-care patients versus chronic-care patients is in acute-care, the issue is immediate and triage, or management of resources, takes a second step of the urgency and critical care nature of the patient. With chronic-care patients, utilization management is directed more at the appropriateness of quality care without the overuse or overspending of unnecessary resources.

Management of care is very important in the hospital setting due to abuse of services that end of being billed to insurance companies. Often times patients are kept as inpatient or as an observation patient with no just cause for keeping them there. This could be poor case management on behalf of the hospital and the physician. Utlization review is definitely the department along with case management that is suppose to help to eliminate this type of mistake from happening. Often times when a patient is admitted into a facility and precert is done or there is an authorization for services or an extended stay, progress has to be called into the insurance company as to the patients status in order to grant them additional days of stay within the hospital or to have an additional procedure approve prior to the insurance company agreeing to pay for services being rendered.

Utilization management benefits the patients and the health care providers by helping patients receiving the most appropriate care. Utilization management is the collection, assessment of monitored data that permits patients services and treatment. Utilization management aspects are patient care; meaning the timeless of service, the number of hospital bed used in a day, amount of medication prescribed and recovery time of patients.

Acute care patients require managing based upon sudden illnesses and they are severe. There may be a illness that is sharp pain and results is symptoms appear and then, change to get worse. There is a need for managing care to respond quickly because it could mean death soon and usually it is a severe situation. Managing this type of illnesses usually not long term. The chronic care patients is based upon long terms and what areas of problems to focus disease or issue of more than a year and it is ongoing medical disease. These type of patients require less time and many hours of less skilled workers and the doctor does not have to spend a lot of time with them. It seems that managing utlization focus on decision making based upon the appropriate healthcare and service needed and what type of coverage the patient has or need as per the two articles I reviewed below. Also, it is important the managing utilization evaluate, review all aspects of the health issues to determine the most efficient and logical procedures for the patient health care.

Utilization management is an organizational, multidisciplinary approach to balancing the quality, the risk, and the cost issues that can affect patient care. Utilization management is a structured process of assessing and evaluating the healthcare needs, quality, safety, and effectiveness of health care services that are provided. The overall goal of utilization management is ensure that a sense of quality and effective health care is maintained and provided to all patients based on the appropriate level of care. This helps to ensure that appropriate care is coordinated for patients, and that it is cost effective and it meets their health care benefits.

Kongstvedt, P. (2007). Essentials of Managed Health Care (5th ed). Jones & Bartlett Publishers.

Retrieved from

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Review the Force Field Analysis model and relate it to an issue in your organization or your associations outside of work Answer

The Force Field Analysis Model is one of the most famous in change management. It was originally developed by Kurt Lewin and can be found in Chapter 5 at the end of the chapter (printed page 151). Review this model and relate it to an issue in your organization or your associations outside of work. Define how understanding the “forces for” and the “forces against” inter-relate. What insights did you get from the analysis?

Class: In previous discussions, we have been exploring the pressures (forces) driving change, and also the barriers that hold change back. In this discussion, we will look at a model that combines both forces for change, and the barriers that hold back change (the “Force Field” model), originally developed by Lewin. Let’s being with practical application: Review the model and relate it to an issue in your organization or your associations outside of work. Define how understanding the “forces for” and the “forces against” inter-relate. What insights did you get from the analysis?


The Force Field analysis method does not just identify a list of driving forces and restraining forces. Sometimes the list can get rather lengthy, and can seem overwhelming. The Force Field model is useful in helping to sort all of this out, by identifying and ranking all of the driving and restraining forces, and helping managers to focus on the forces that are having the greatest impact on the business. The real power of this tool is in the focus that it can provide, instead of trying to change too many things at one time.


In terms of the illustration of driving and restraining force, it is crucial for an organization to evaluate each pros and cons in terms of the driving and restraining force. I state this because analyzing the pros and cons effective strategies can become efficient in terms of decreasing the affect of the opposing force and bolster the supporting force. Forces to remember in terms of organizational interaction, attitudes of individuals, organization structure and relationships.


The Force-Field Analysis Model identifies the driving forces (“forces for”) and restraining forces (“forces against”) of change to implement change (Palmer, Dunford, and Akin, 2009). This method helps the organization look at the big picture, evaluate the pros and cons of the change, and then identify opportunities to strength the driving forces while weakening the restraining forces (Iowa State University, 2014). Therefore, the driving forces and restraining forces interrelate because they are both factors that impact the overall implementation of change.


One change that was recently implemented at my organization was the relocation of our retail store in July 2013. The driving forces of our store’s relocation, rated on a 1 – 10 scale, with 10 having the most influence on the change, included: central location (10), increased brand awareness (10), more space for inventory and product (5), logistics (7), revenue generated from the sale of the previous store building (6). The restraining forces of our store’s relocation, rated on the same 1 – 10 scale included: inconvenience of moving (4), employee dissatisfaction (8), employee turnover (4), increased costs for rent, supplies, new equipment, etc. (8), regulation in regards to higher taxes, lease agreements, etc. (9).

This Force-Field Analysis concluded the driving forces outweighed our restraining forces, by a score of 38 to 33, respectively. This means the driving factors for the relocation of our retail store had more influence on the implementation of change, which supported our management’s decision to relocate the store in July 2013. Since this change, our store has generated a significant increase in sales and brand awareness from being more centrally located, which has offset our costs of paying higher rent and taxes. While we did experience some employee turnover as a result of the relocation, we have since created more Sales Associate positions, increased employee morale, and streamlined our logistics.

Palmer, I., Dunford, R., & Akin, G. (2009). Managing organizational change: A multiple perspectives approach. (2nd ed.). New York: McGraw-Hill Irwin.

Iowa State University (2014). Force Field Analysis. Retrieved from

My understanding of the force field analysis is that, in every organization there are forces that are for change and those that are against the changes. The Force Field Analysis Model suggests that modifying the forces which maintain the status quo may be easier than increasing the forces for change. Lewin’s change model has 3 steps:

1) Unfreezing which means that organization reduces strength of forces which maintain current equilibrium

2) Moving is developing new organizational values, attitudes and behaviors to help move the organization forward

3) The third stage is refreezing which is nothing but stabilizing after the changes have been made and there is a new equilibrium.

We can take example from the automobile industry. Gas prices have steadily been on the rise in the last decade or so. US Automobile companies were producing automobiles that were not so fuel efficient till Foreign-made, fuel-efficient cars gained a stronger foothold in the American market. At this stage, American car companies e.g. Ford, GM and Chrysler were frozen and unwilling to change the types of automobiles they were designing. In 2008, when oil prices were above $140 a barrel, automobile dealers claimed that overnight people stopped buying larger automobiles. Instead, consumers wanted the cheaper and more fuel efficient cars. Foreign auto makers’ fuel efficiency car had already matured in terms of product life cycles and had the most desirable cars meeting the customer’s expectations in the marketplace. American automakers realized that they had to change their automobile design or face bankruptcy. Kurt Lewin would mark this as the end of the unfreezing and the beginning of the change process. Now, American automakers are in the middle of the change process hoping to avoid bankruptcy and are introducing new lines of fuel efficient automobiles that will compete in this auto market. As per Kurt Lewin model, we can say that once production stabilizes, hopefully the US Automobile companies will be in a new state of equilibrium.


Palmer, I, Dunford, R. Akin, G. (2009). Managing Organizational Change: A multiple perspectives approach. 2nd Edition. The McGraw-Hill Companies.

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You are writing procurement SOW for an RFP. What items are you likely to include in this SOW Answer

You are writing procurement SOW for an RFP. What items are you likely to include in this SOW? (Points : 12)


Procurement Statement of Work (SOW) is a legal document subject to legal reviews. Statement of work (SOW) is used to define the work of the project, the objectives, and a high-level overview of the deliverables. Statement of work (SOW) Contains the details of a procurement item in clear, concise terms and includes the project objectives, a description of the work of the project, concise specifications of the product or services required, and a project schedule. The statement of work (SOW) is a narrative description of products or services to be delivered by the project. For internal projects, the project initiator or sponsor provides the statement of work based on business needs, product, or service requirements. For external projects, the statement of work can be received from the customer as part of a bid document, for example, request for proposal, request for information, request for bid, or as part of a contract.

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Main ideas of the annual report and an explanation of how you might present these ideas to stakeholders Answer

ACC 230 Week 8 Presentation to Stakeholders Answer


Assignment: Presenting to Stakeholders

Resource:pp. 192-193 (Ch. 6) of Understanding Financial Statements

Read the scenario in Problem 6.9 on p. 234 (Ch. 6).

Compose a 350- to 500-word response that includes a paragraph about the main ideas of the annual report and an explanation of how you might present these ideas to stakeholders.

Refer to the questions in the Objectives of Analysis section on pp. 192-193 (Ch. 6) for guidance on tailoring ideas to present to stakeholders.


R.E.C’s accounting meeting with the Accountants, the CEO, Director of Investment Relations and Marketing and Art Department representatives is going to help design the annual report for the company through reviewing financial reports for 2007. There are an amount of ideas that can be looked at when working toward putting together R.E.C.’s annual financial report. The main idea should be about how the company did, why they did that good along with what areas within the company made things look that good. This would be presented by talking about quarterly totals, changes in quarters, what areas had made improvements in the company, what areas have gone downhill in the company and information about how the company did so well within the areas that they did well in and why they didn’t do well in others along with what changes can happen in the troublesome areas. This would be so that the CEO has a better understanding of how is company has done and an explanation as to what he and /or she has been seeing on paper. Another main idea would be an outlook on the investors’ behalf, something talking about how the company’s performance record is, what the investors should expect to see in the future and how their capital structure and competitive position are within their said industry. This would be presented as talking about some of the financial statements and where the company stands financially and if they should make any changes to how they are handling their debt and things of this nature. Ensure that no mistakes have been made in areas of the financial statements and be sure to make sure they understand where the downfalls were and where the company pulled through after minor changes to ensure that things were looking up. Also, be sure that marketing and art take notes as to if they need to work toward advancing how they are doing things depending on how the company is doing and what changes they decide to make. The annual report should be presentable and cover all areas of finances that any and all stakeholders and shareholders may have about the company and where things have been going within the last year. All stakeholders and shareholders will have a solid understanding of the company by the end of the annual report with all of these areas being covered.