MBA504: You have just been appointed to the newly created post of Senior Management Accountant with Bia Folláin plc, trading as Healthy Foods: Managing For Financial Accountability Case Study, ACD, Ireland

Case Study

You have just been appointed to the newly created post of Senior Management Accountant with Bia Folláin plc, trading as “Healthy Foods”, Ireland’s largest manufacturer of a health food products. This is your first post since attaining your MBA in Managing for Financial Accountability.

The health food products are produced under the company’s own label and are produced in single container sizes and have very similar costs and revenue streams. The products are sold to both supermarket chains and small retail outlets throughout the Ireland. The company’s strategy follows the “cost leadership” business-level strategy as the Managing Director is very pragmatic. As such, he feels that cost is a very important factor when people buy the products. However, this has lead to an increase in the number of quality issues in the manufacturing plant, “bottlenecks” during production, staffing problems, and increased customer complaints over the last number of years. Overall the company’s profitability has been static in previous years despite attempts to expand the company’s market share and strict cost control.