1 Flavours Fine Foods is a leading producer for the food industry, supplying many of Europe’s leading restaurants.

Started just five years ago by brothers Lee and Alan Jones, the organisation has grown from a small company employing five people to a multi-divisional organisation employing 120 people.

The organisation’s production facility is divided into three separate departments. Each department has a single manager with supervisors assisting on the production lines. The managers and supervisors, all of whom are aware of their roles, work well together. However, although the organisation has grown, the owners continue to involve themselves in day to day activities and this has led to friction between the owners, managers and supervisors.

As a result a problem arose last week. Alan Jones instructed a supervisor to repair a machine on the shop floor, which he refused to do without confirmation and instruction from his departmental manager. The supervisor’s manager,Dean Watkins, became involved and was annoyed at what he saw as interference in his department’s activities. Dean told Alan Jones that he “should have come to me first” because although the responsibility for the overall organisation was a matter for the brothers, action taken in the factory was his through powers that had been delegated to him and through his authority, as manager. In the argument that followed, Alan Jones was accused of failing to understand the way that the hierarchy in such a large organisation operates and that interference with operational decisions by senior management was not helpful.

As a consequence of this, Alan Jones has asked you to explain to him and his brother the issues behind the dispute to clarify the roles of managers and supervisors and to indicate how and why successful delegation might be achieved.

Required:

(a) Explain to Alan Jones the main differences between the work of a manager and that of a supervisor.

(13 marks)

(c) Discuss the factors that might influence whether the initial bid is likely to be accepted by the shareholders of Wragger plc.

Note: requirement (a) includes 4 professional marks.

A central feature of the performance measurement system at TSC is the widespread use of league tables that display

each depot’s performance relative to one another.

Required:

(b) Evaluate the potential benefits and problems associated with the use of ‘league tables’ as a means of

measuring performance. (6 marks)

(b) The management of Division C has identified the need to achieve cost savings in order to become more

competitive. They have decided that an analysis and investigation of quality costs into four sub-categories will

provide a focus for performance measurement and improvement.

Required:

Identify the FOUR sub-categories into which quality costs can be analysed and provide examples (which

must relate to Division C) of each of the four sub-categories of quality cost that can be investigated in order

that overall cost savings might be achieved and hence the performance improved. (8 marks)

(d) Corporate annual reports contain both mandatory and voluntary disclosures.

Required:

(i) Distinguish, using examples, between mandatory and voluntary disclosures in the annual reports of

public listed companies. (6 marks)

11 The following information is available for Orset, a sole trader who does not keep full accounting records:

$

Inventory 1 July 2004 138,600

30 June 2005 149,100

Purchases for year ended 30 June 2005 716,100

Orset makes a standard gross profit of 30 per cent on sales.

Based on these figures, what is Orset’s sales figure for the year ended 30 June 2005?

A $2,352,000

B $1,038,000

C $917,280

D $1,008,000

(b) Wallace Co; and (5 marks)