Page 1of 18Individual Written CasesPart 2(50 Marks)DueThursday April 10thInstructions:?A Hard copy of the report should be submitted at the beginning of the class.?You are required to complete both of the followingcases:Quality Treats, Inc.Case (24Marks)Milton University Bookstore Case(26Marks)?Font type should be Arial and the font size should be12points.?Line spacing should be 1.5lines.?Follow the required page limits as stated for each requirement.?Marks for professional presentation are integrated with the marksof each requirement.?The assignment should be done independently by each student. ?It is the student’s responsibility to ensure that the assignment is completed when due.?The Business Faculty requires the Harvard style of referencing for academic papers.Please see Quote, Unquote Referencing, and a Speedy Guide to Harvard Referencing at http://www.viu.ca/business/resources.asp.?Errors happen in the real life every day, so if you see an errorin the cases. Note the error in your report and use your best judgment to continue your analysis.Quality Treats, Inc.Case (24Marks) INTRODUCTIONNicoleMolsonis the manager of Strategic Marketing Unit Two (SMU2) at Quality Treats, Inc., a provider of branded, high quality food products. Molsonis unhappy with what she perceives to be unfair and inappropriate product costing for her unit, especially for what Quality Treatsconsiders to be special orders. Molson’s education, experience, and expertise as a food scientist and process engineer have earned her considerable respect at Quality Treats, but she has limited accounting knowledge, which holds her back from expressing her serious concerns. Therefore, Molsonasked you, soon to be anaccounting graduate, to develop a memorandumand a glossary of terms to help her make her case more forcefully to top management.QUALITY TREATS, INC.Quality Treats, Inc., rooted in the upper Midwest United States, produces a wide range of food products in a competitiveindustry. Almost all of its products are sold under the Fine ’n’ Fast brand name, which is
Page 2of 18widely recognized for its high quality and has a loyal customer following. Most products are packaged in sizes for end consumption and are sold through supermarkets, convenience shops, and similar outlets. Depending on the nature of the product and consumer preferences, products are sold frozen, refrigerated, canned, boxed, or packaged in other ways. Some items, such as individual packets of ketchup, mayonnaise, and mustard, are sold to fast food restaurants and similar outlets. The company also sells half gallon containers—branded with the company logo—of salad dressings, ketchup, mustard, and similar items with a plastic pump so that restaurant customers can serve themselves at salad bars and similar places. Other products are sold, often in bulk, to institutional users, such as large food service groups, caterers, and the like. These products may or may not be branded. A small portion of sales is made to other food producers, for example, salad dressing packets are sold to producers of packaged fresh salad greens; Quality Treatsdoes not deal with fresh products. Quality Treatsis owned by Jordan Meadows Group, a private equity firm. Jordan Meadows Groupgives Quality Treatsalmost complete freedom and control over management, product selection, performance evaluation, and so forth. Because it is privately owned, external financial reporting is not mandatory, nor is there any obligation to use any set of financial accounting standards for internal reporting. Any external financial reporting is on a group or consolidated basis and performed by Jordan Meadows Group.Jordan Meadows Groupalso owns Quality TreatsCanada, Ltd., which sells products almost exclusively in Canada, with primary operations nearby in the prairie provinces. There is no mutual ownership or management connection between Quality Treatsand Quality TreatsCanada. Because the two companies produce many identical products using the Fine ’n’ Fast brand, they do share recipes and process technology. Quality Treatsalso produces some products for Quality TreatsCanada that do not have sufficient market size in Canada to justify separate production. Jordan Meadows Groupalso owns smaller companies with the Fine ’n’ Fast name that are mostly importers of Fine ’n’ Fast products in countries outside of the U.S. and Canada where high quality, branded North American food products have niche markets. These products are produced by Quality Treats.Quality Treatsis organized into three Strategic Marketing Units (SMUs) based on the markets they serve. SMU1 serves supermarkets and similar outlets. SMU2 serves mostly institutional customers who order in large volumes and often in bulk quantities. SMU2 also sells specialorders from time to time that involve unbranded bulk products that are exported. SMU3 serves affiliated Quality Treatscompanies in other countries, mostly for import into those countries; governmental organizations that sell food and have food service facilities, such as military organizations; and similar customers that have special contracting requirements.Products sold by all three SMUs are manufactured by the same production facilities, including warehouses, food preparation and cooking facilities, and packaging facilities. The SMUs also share most headquarters activities, such as information technology, accounting and other administration, human resources, and similar activities. SMU1 and SMU2 have their own marketing and sales departments, while SMU3 does not have separate departments for these tasks. Figure 1 shows an organizational chart for Quality Treats.
Page 1of 18Individual Written CasesPart 2(50 Marks)DueThursday April 10thInstructions:?A Hard copy of the report should be submitted at the beginning of the class.?You are required to complete both of the followingcases:Quality Treats, Inc.Case (24Marks)Milton University Bookstore Case(26Marks)?Font type should be Arial and the font size should be12points.?Line spacing should be 1.5lines.?Follow the required page limits as stated for each requirement.?Marks for professional presentation are integrated with the marksof each requirement.?The assignment should be done independently by each student. ?It is the student’s responsibility to ensure that the assignment is completed when due.?The Business Faculty requires the Harvard style of referencing for academic papers.Please see Quote, Unquote Referencing, and a Speedy Guide to Harvard Referencing at http://www.viu.ca/business/resources.asp.?Errors happen in the real life every day, so if you see an errorin the cases. Note the error in your report and use your best judgment to continue your analysis.Quality Treats, Inc.Case (24Marks) INTRODUCTIONNicoleMolsonis the manager of Strategic Marketing Unit Two (SMU2) at Quality Treats, Inc., a provider of branded, high quality food products. Molsonis unhappy with what she perceives to be unfair and inappropriate product costing for her unit, especially for what Quality Treatsconsiders to be special orders. Molson’s education, experience, and expertise as a food scientist and process engineer have earned her considerable respect at Quality Treats, but she has limited accounting knowledge, which holds her back from expressing her serious concerns. Therefore, Molsonasked you, soon to be anaccounting graduate, to develop a memorandumand a glossary of terms to help her make her case more forcefully to top management.QUALITY TREATS, INC.Quality Treats, Inc., rooted in the upper Midwest United States, produces a wide range of food products in a competitiveindustry. Almost all of its products are sold under the Fine ’n’ Fast brand name, which is
Page 2of 18widely recognized for its high quality and has a loyal customer following. Most products are packaged in sizes for end consumption and are sold through supermarkets, convenience shops, and similar outlets. Depending on the nature of the product and consumer preferences, products are sold frozen, refrigerated, canned, boxed, or packaged in other ways. Some items, such as individual packets of ketchup, mayonnaise, and mustard, are sold to fast food restaurants and similar outlets. The company also sells half gallon containers—branded with the company logo—of salad dressings, ketchup, mustard, and similar items with a plastic pump so that restaurant customers can serve themselves at salad bars and similar places. Other products are sold, often in bulk, to institutional users, such as large food service groups, caterers, and the like. These products may or may not be branded. A small portion of sales is made to other food producers, for example, salad dressing packets are sold to producers of packaged fresh salad greens; Quality Treatsdoes not deal with fresh products. Quality Treatsis owned by Jordan Meadows Group, a private equity firm. Jordan Meadows Groupgives Quality Treatsalmost complete freedom and control over management, product selection, performance evaluation, and so forth. Because it is privately owned, external financial reporting is not mandatory, nor is there any obligation to use any set of financial accounting standards for internal reporting. Any external financial reporting is on a group or consolidated basis and performed by Jordan Meadows Group.Jordan Meadows Groupalso owns Quality TreatsCanada, Ltd., which sells products almost exclusively in Canada, with primary operations nearby in the prairie provinces. There is no mutual ownership or management connection between Quality Treatsand Quality TreatsCanada. Because the two companies produce many identical products using the Fine ’n’ Fast brand, they do share recipes and process technology. Quality Treatsalso produces some products for Quality TreatsCanada that do not have sufficient market size in Canada to justify separate production. Jordan Meadows Groupalso owns smaller companies with the Fine ’n’ Fast name that are mostly importers of Fine ’n’ Fast products in countries outside of the U.S. and Canada where high quality, branded North American food products have niche markets. These products are produced by Quality Treats.Quality Treatsis organized into three Strategic Marketing Units (SMUs) based on the markets they serve. SMU1 serves supermarkets and similar outlets. SMU2 serves mostly institutional customers who order in large volumes and often in bulk quantities. SMU2 also sells specialorders from time to time that involve unbranded bulk products that are exported. SMU3 serves affiliated Quality Treatscompanies in other countries, mostly for import into those countries; governmental organizations that sell food and have food service facilities, such as military organizations; and similar customers that have special contracting requirements.Products sold by all three SMUs are manufactured by the same production facilities, including warehouses, food preparation and cooking facilities, and packaging facilities. The SMUs also share most headquarters activities, such as information technology, accounting and other administration, human resources, and similar activities. SMU1 and SMU2 have their own marketing and sales departments, while SMU3 does not have separate departments for these tasks. Figure 1 shows an organizational chart for Quality Treats.
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