final business stratagy
TRANSCRIPT
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BUSINESS STRATAGIES AND MANAGEMENT CONTROL TO MEASURE SUCCESS
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PADMASHREE ANNASAHEB JADHAV BHARATIYA SAMAJ UNNATI MANDALS
B.N.N. COLLEGE, BHIWANDI
DIST. THANE 421 305
UNIERSITY OF MUMBAI
A PROJECT ON
BUSINESS STRATAGY AND
MANAGEMENT CONTROL TO
MEASURE SUCCESSSUBMITTED BY
NEELAM EKNATH PATIL
ROLL NO. 120
IN PARTIAL FULFILMENT OF
THE REQUIRMENT FOR
THE AWARD OF THE DEGREE OF
M.COM IN MANAGEMENT
UNIVERSITY OF MUMBAI
UNDER GUIDENCE OF
PROF.AMEERUL HASAN
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PADMASHREE ANNASAHEB JADHAV BHARATIYA SAMAJ UNNATI MANDALS
B.N.N. COLLEGE, BHIWANDI
DIST. THANE 421 305
CERTIFICATE
This is to certify that, NEELAM EKNATH PATIL.ROLL NO.120 of
M.COM IN MANAGEMENT (Academic Year 2013-2014) has
successfully completed the project on BUSINESS STRATAGY
AND MANAGEMENT CONTROL TO MEASURE SUCCESS
and submitted the project report in partial fulfillment of the
requirement for the award of the M.COM(MANAGEMENT)
students of University of Mumbai.
Signature
I/C Principal Prof. U.D.KADAM
Course Co-coordinators Prof. Suwarna Rawal
Project Guide Prof.AMEERUL HASAN
External Examiner
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ACKNOWLEDGEMENT
I,MISS PATIL NEELAM (Roll No. 120)of MASTER OF COMMERCE,
studying in B.N.N COLLEGE, Bhiwandi, hereby that declare that the
information contained in the project titledBUSINESS STRATAGY AND
MANAGEMENT CONTROL TO MEASUR SUCCESS is true and
correct to the best of my knowledge & belief.
( NEELAM PATIL)
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DECLARATION
I am indebted to my project guide Prof. SHAH AMEERUL
HASAN for helping me out in the successful completion of my project report
,on BUSINESS STRATAGY AND MANAGEMENT CONTROL TO
MEASURE SUCCESS I am thankful to my other teacher for providing me
the information as and when required.
I am extremely thankful to my family members for their constant
support.
Last, but not least, came my friends who discussed with me the
various issues in my project finally; I want to thank one and all who helped me
directly or indirectly through the project work.
(NEELAM PATIL)
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INDEXSR.NO TOPIC NAME PAGE NO.
1 INTRODUCTION OF BUSINESS
STRATAGY
6-8
2 BUSINESS STRATEGIC
ANALYSIS
9-11
3 BUSINESS STRATAGY MODEL
BUSINESS STRATAGY
TECHNIQUES
I.
SWOTII. 5&6 FORCES
III. PEST
IV. PESTEL
V. MOST
VI. DBONOS 6 THINKING
HATS
12-14
15-24
4 CRITICAL SUCCESS FACTOR 25-27
5 RESEARCH METHODOLOGY
OBJECTIVES OF STUDY
SOURCES OF DATA
LIMITATIONS OF STUDY
28-29
6 GUIDE TO INTERNAL
CONTROL-
(CAMPES PHILOSOPHY ON
FISCAL MANAGEMENT)
31
7 COMPONENTS OF INTERNAL
CONTROL
32-43
8 ROLE OF INTERNAL AUDIT 44
9 CONCLUSION 45
10 REFERENCE 46
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PROJECT ON
BUSINESS STRATAGIES AND MANAGEMENT
CONTROL TO MEASURE SUCCESS
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INTRODUCTION OF BUSINESS STRATEGY
MEANING OF STRATEGY
Author:Jim Riley Last updated: Sunday 23 September, 2012
Overall Definition:
Johnson and Scholes (Exploring Corporate Strategy) define strategy as follows:
"Strategy is the direction and scopeof an organization over the long-
term:which achieves advantage for the organization through its configuration
of resourceswithin a challenging environment, to meet the needs
of marketsand to fulfill stakeholderexpectations".
In other words, strategy is about:
* Where is the business trying to get to in the long-term (direction)
* Which markets should a business compete in and what kind of activities are
involved in such markets? (markets; scope)
* How can the business perform better than the competition in those markets? (
advantage )?
* What resources (skills, assets, finance, relationships, technical competence,
facilities are required in order to be able to compete? (resources )?
* What external, environmental factors affect the businesses' ability to compete?
(environment)?
* What are the values and expectations of those who have power in and around
the business? (stakeholders)
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STRATEGY AT DIFFERENT LEVELS OF A BUSINESS
STRATEGY
Strategy is also a hierarchical conceptit takes place at three different
levels: corporate, business, and functional. These levels correspond with theactivities of managers in different parts of the organization.
o Corporate strategy is the set of explicit or implicit decision rules
that determines what business(es) a firm will be in and not be in,
and how it will allocate resources among them.
o
Business strategy is how a firm develops and sustains acompetitive advantage within an industry.
o Functional strategy is the set of decisions made in marketing,
operations, finance, research and development, and human
resources that supports the business strategy.
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Corporate Strategy- Corporate strategy, typically located at
headquarters, determines which industries the firm will compete in and which
ones it will exit.
Business Strategy. Business strategy, typically located at the business
unit or division level, determines how a company will compete within a given
industry.
Functional Strategy. Functional strategies are typically the responsibility of
the heads (often vice presidents) of the various functions within a product
division or business unit.
BUSINESS STRATEGY ANALYSIS
To many managers, and most strategic planners, the idea of thinking about
and influencing the futures of their firms is an exciting one. Most managers are
eager to set corporate goals and then to start formulating strategies that will help
achieve those goals. However, two fundamental problems are inherent in
approaching the strategic management task this way. First, most businesses are
ongoing concerns and have set in motion certain activities that are a reflection
of decisions made in the past. To think about the future without a thorough
understanding of what is actually taking place may lead managers to formulate
strategies that are either unrealistic or impossible to implement. Second,
managers sometimes are tempted to engage in a strategic redirection of their
firms without a thorough understanding of the healthyparts of their existing
strategy. This tendency to throw the baby out with the bathwater can be
thwarted only by making sure that management thoroughly understands the
basis and the results of its present strategy.
All firms have a realized strategy, whether or not management has made
that strategy explicit in advance. As we have seen, a firms actual strategy can
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be quite different from what management thinks it is or from what it was
intended to be. The process of delineating the realized strategy is
called strategy identification.
This section will describe how to identify a business strategy. After this
identification process is complete, then a manager can assess the quality of that
strategy in order to ascertain which aspects of strategy might be candidates for
change and which are certain candidates for retention. (Note that a perfectly
acceptable outcome is for management to conclude that no changes are
necessary. This process then results in validating an already sound strategy.)
IDENTIFYING YOUR FIRMS BUSINESS STRATEGY
Strategy identification at the business level is a straightforward process. In
essence, a business strategy is built on a set of functional strategies, representing
the competitive weapons that a company employs to compete in a given
industry. The way to identify a business strategy is simply to first go through
each of the functional areas and identify what pattern of decisions have been
made in each, as follows.
Marketing Strategy. Marketing strategy consulting firms price their
services at a multiple closer to five times the consultants hourly salary rate.
Therefore, Sigma would be considered a standard-rate price, whereas some of
the specialized strategy consultants would be considered premium-rate
consulting firms.
Operations Strategy. Here, management should consider the question of
how it transforms inputs into outputs for the marketplace. For example, what
kinds of facilities does the company use? Are they concentrated in one location,
or are they dispersed over a broader area? What is the companys capacity
strategy.
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Financial Strategy. Although many firms are fairly explicit about the
marketing and production strategies that they follow, some of these same firms
are vague when it comes to articulating their financial strategies.
Research-and-Development Strategy. Firms vary considerably in the ex-
tent to which they include research and development as a salient component of
their business strategies.
Human Resources Strategy. The types of people hired to operate a company
is not only a reflection of the other functional strategies, but they also determine
what kinds of future strategies can be pursued. Why? Because the human assets
represent the capability set of the firm.
EVALUATING YOUR FIRMS BUSINESS STRATEGY
Disciplining oneself to go through the strategy evaluation process is
important because only after gaining a thorough understanding of the strategys
quality can one know what elements of strategy should be changed and, equally
important, which elements of strategy are sound and should not be altered. In
addition, the evaluation process itself will suggest strategic alternatives.
The complexity of a corporation defies its being evaluated in any single
dimension. As any security analyst knows, the quality of a companys stock
must be judged on more than the historical performance of the firm; equallyimportant are the firms plan for the future, the quality of its internal resources,
and its management.
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BUSINESS STRATAGY
A Definition of Business Strategy
The definition of business strategy is a long term plan of action designed to
achieve a particular goal or set ofgoals or objectives.
Strategy is management's game plan for strengthening the performance of the
enterprise.
It states how business should be conduct to achieve the desired goals. Without a
strategy management has no roadmap to guide them.
Creating a business strategy is a core management function .It must be said that
having a good strategy and executing the strategy well, does not guarantee
success. Organizations can face unforeseen circumstances and adverse
conditions through no fault of their own.
The strategy needs to be frequently reviewed against prevailing
external and internal environment (SWOT analysis ).This is wherebusiness
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intelligence comes in where you need to constantly monitor how the strategy
and the objectives are being executed.
Business (or Strategic) management is the art, science, and craft offormulating, implementing and evaluating cross-functional decisions that will
enable an organization to achieve its long-term objectives. It is the process of
specifying the organization's mission, vision and objectives, developing policies
and plans, often in terms of projects and programs, which are designed to
achieve these objectives, and then allocating resources to implement the policies
and plans, projects and programs. Strategic management seeks to coordinate and
integrate the activities of the various functional areas of a business in order to
achieve long-term organizational objectives. A balanced scorecard is often used
to evaluate the overall performance of the business and its progress towards
objectives.
The Business Architecture Model
Business Architecture Model. Where a framework is a higher level
basic conceptual structure of related things, the model is a pattern of things that
can be repeated to achieve a desired result. In other words, the model simply
represents an actionable approach, or pattern, for delivering on the conceptual
framework.
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BUSINESS STRATAGY TECHNIQUES
While operating at business level to get success in business
operations businessman have to adopt business strategies. There are many
business strategies some of them discussed below,
I. SWOT ANALYSIS
Strengths:What are the productstrengths that differentiate it from the
competition? What organizational strengths do we bring to the table?
Weaknesses:Where are features lacking or underdeveloped? Are there
alliances or organizational weaknesses that erode market share?
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Opportunities:Where can we differentiate the product? What strategies can we
put in place to gain greater market share?
Threats:How could this product fail? What factors in the market or the
roadmap can bring it to obsolescence or lose market share?
In my opinion, SWOT tends to primarily focus on your product and the
competitors around it. This framework is a bit too close when looking purely at
how an organization can meet objectives set for a product and narrow when
looking only at your product vs. the competition. Often market research is
sought in determining the objectives themselves, and this is where it can be
limited. Often the organization looks to the product to set the objectives of the
productor at least recommend them. SWOT will not help you set the product
objectives because it assumes they have already been set.
Example SWOT Analysis,
A start-up small consultancy business might draw up the following SWOT
Analysis:
Strengths:
We are able to respond very quickly as we have no red tape, and no need
for higher management approval.
We are able to give really good customer care, as the current small
amount of work means we have plenty of time to devote to customers.
Our lead consultant has strong reputation in the market.
We can change direction quickly if we find that our marketing is not
working.
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We have low overheads, so we can offer good value to customers.
Weaknesses:
Our company has little market presence or reputation.
We have a small staff, with a shallow skills base in many areas.
We are vulnerable to vital staff being sick, and leaving.
Our cash flow will be unreliable in the early stages.
Opportunities:
Our business sector is expanding, with many future opportunities for
success.
Local government wants to encourage local businesses.
Our competitors may be slow to adopt new technologies.
Threats:
Developments in technology may change this market beyond our ability
to adapt.
A small change in the focus of a large competitor might wipe out any
market position we achieve.
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II. THE 5 AND 6 FORCES MODEL
The 5 and 6 Forces Model
The 5 and 6 Forces Model look at product as 5 (or 6) key forces that shape
a business strategy .This framework goes deeper into the market dynamics of
where you are investigating a product .Each of the forces evaluates the
competitive intensity of a market. If there is intense competition, there is both
strong interest from potential buyers to purchase a product, and business
model(s) that ensure companies make a profit to meet this demand.
The forces include:1) Competition for your product.
2) New entrants that would compete in your space, often with new business
models.
3) End users/Buyers and their bargaining power on influencing price,
integration, and concentration.
4) Suppliers of raw materials, components and services for your product andtheir bargaining power on business strategy.
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5) Substitute products and those factors that influence it (cost of product,
perceived value, cost to switch, etc).
6) Complementary products/ The government/ The public. This 6th factor takes
into account strategic alliances and how the government or public can influence
business strategy for a particular product
III. PORTERS FIVE FORCES MODEL
The Porter's Five Forces tool is a simple but powerful tool for
understanding where power lies in a business situation. This is useful, because it
helps you understand both the strength of your current competitive position, and
the strength of a position you're considering moving into.
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With a clear understanding of where power lies, you can take fair advantage of a
situation of strength, improve a situation of weakness, and avoid taking wrong
steps. This makes it an important part of your planning toolkit.
Conventionally, the tool is used to identify whether new products, services or
businesses have the potential to be profitable. However it can be very
illuminating when used to understand the balance of power in other situations.
Five Forces Analysis assumes that there are five important forces that determine
competitive power in a business situation. These are:
Supplier Power
Buyer Power
Competitive Rivalry
Threat of Substitution
Threat of New Entry
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IV. PEST ANALYSIS
PEST analysis is a strategic business measurement tool.
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PEST is an acronym for Political, Economic, Social and Technological
factors.These factors are primarily external factors which are used prior to doing
a SWOT analysis (which is used to assess both internal and external factors).
PEST is used to assess business/strategy planning, marketing positioning,
business and product development, product introduction, new idea, business
diversification or to review the strategy or position of a organization.There are
variations to the PEST analysis like the PESTLE (includes Legal and
Ecological/Environmental)
There are many situations where systematic PEST analysis gives clarity
about the external factors which can affect the decisions such as :
Brand in relation to a market
Product Launch
Merger and Acquisition
Entering a new market
Potential Partnership
Investment opportunity
Company assessing the market conditions
Product versus competition
I. PESTLE
This is used to perform an external environmental analysis by
examining the many different external factors affecting an organization.
The six attributes ofPESTLE:
Political (current and potential influences from political pressures)
Economic (the local, national and world economy impact)
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Sociological (the ways in which a society can affect an organization)
Technological (the effect of new and emerging technology)
Legal (the effect of national and world legislation)
Environmental (the local, national and world environmental issues)
II. HEPTALYSIS
This is used to perform an in-depth analysis of early stage
businesses/ventures on seven important categories.
Market opportunity
Product/solution
Execution plan
Financial engine
Human capital
Potential return Margin of safety
III. MOST
This is used to perform an internal environmental analysis by
defining the attributes of MOST to ensure that the project you are working on is
aligned to each of the four attributes.
The four attributes of MOST.
Mission (where the business intends to go)
Objectives (the key goals which will help achieve the mission)
Strategies (options for moving forward)
Tactics (how strategies are put into action
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IV. DE BONO'S SIX THINKING HATS
This is often used in a brainstorming session to generate and
analyze ideas and options. It is useful to encourage specific types of thinking
and can be a convenient and symbolic way to request someone to switch
gears". It involves restricting the group to only thinking in specific ways -
giving ideas & analysis in the mood of the time. Also known as theSix
Thinking Hats.
White: Pure facts, logical.
Green: Creative.
Yellow: Bright, optimistic, positive.
Black: Negative, devils advocate.
Red: Emotional.
Blue: Cold, control.
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CRITICAL SUCCESS FACTORS
Identifying the Things That Really Matter for Success
How will you measure success?
So many important matters can compete for your attention in business
that it's often difficult to see the "wood for the trees". What's more, it can be
extremely difficult to get everyone in the team pulling in the same direction and
focusing on the true essentials .That's where Critical Success Factors (CSFs) can
help. CSFs, also known as Key Results Areas (KRAs), are the essential areas of
activity that must be performed well if you are to achieve the mission,
objectives or goals for your business or project.
The idea of CSFs was first presented by D. Ronald Daniel in the 1960s. It
was then built on and popularized a decade later by John F. Rockart, of MIT's
Sloan School of Management, and has since been used extensively to help
businesses implement their strategies and projects.
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Inevitably, the CSF concept has evolved, and you may have seen it
implemented in different ways. This article provides a simple definition and
approach based on Rockart's original ideas.
Rockart defined CSFs as:
"The limited number of areas in which results, if they are satisfactory, will
ensure successful competitive performance for the organization. They are
the few key areas where things must go right for the business to flourish. If
results in these areas are not adequate, the organization's efforts for the
period will be less than desired."
He also concluded that CSFs are "areas of activity that should
receive constant and careful attention from management."Critical Success
Factors are strongly related to the mission and strategic goals of your business
or project. Whereas the mission and goals focus on the aims and what is to be
achieved, Critical Success Factors focus on the most important areas and get to
the very heart of both what is to be achieved and how you will achieve it.
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RESEARCH METHODOLOGY
Research methodology is a careful investigation for inquiring in a
systematic method and finding solution of a problem. It comprises the defining
and redefining of problem collection and evaluating data, making detection and
reaching conclusion. This research consists of following element.
Objectives of study
Sources of data
Research design
Sample design
Objectives of study
To analysis overview of Business stratagy.
To understand the various business strategies measures to success.
To study strategies and internal controls.
To analysis business strategies.
Sources of data
a. Primary data
b. Secondary data-
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Secondary data are those, which have already been collected by some
other purpose and published. Secondary data are the shape of finished products.
External Data, was generated from magazines ,research books and internet .In
this study secondary data is collected .it is collected through internet ,magazines
and books.
Limitations of the study
The following limitations have been found,
The research study has been done from a selective material on the
internet.
Only selective journals, papers and articles have been put to use because
of the time factor.
There is the possibility of further updating of this research paper because
of limited sources.
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GUIDE TO INTERNAL CONTROL
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CAMPUS PHILOSOPHY ON FISCAL RESPONSIBILITY
(Shared Responsibility for Maintaining Internal Controls)
Every individual within the University has some role in effecting
internal control, including each employee, manager, and supervisor, department
head, dean, director, senior executive, President and Curator. Roles vary with
responsibility. Managers are ultimately responsible for the appropriate use and
control of the funds entrusted to them. Management is accountable to the Board
of Curators, which provides governance, guidance and oversight, and is also at
times accountable to the IRS and funding agencies of federal, state and private
grants and contract.
KEY CONCEPTS OF INTERNAL CONTROL
Internal control is a process. It is a mea ns to an end, not an end in
itself. The goal is reliable financial reporting, effective and efficientoperations, and compliance with laws and regulations.
Internal control is affected by people. It's not merely policy manuals
and forms, but people's actions at every level of the organization.
COMPONENTS OF INTERNAL CONTROL
Key steps taken to achieve internal control are:
Preventative control activities
Preventive controls attempt to prevent or deter undesirable acts from occurring.
They are proactive controls, designed to prevent a loss, error, or omission.
Examples of preventive controls are:
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separation of duties
proper authorizations
adequate documentation
physical securityover cash and other assets
Detective control activities (Monitoring)
Detectivecontrols attempt to detect undesirable acts that have occurred. They
provide evidence after-the-fact that a loss or error has occurred, but do not
prevent them from occurring.
Regular supervisory reviewof account activity, reports, reconciliations.
Routine spot-checkingof transactions, records and reconciliations (do
things make sense and look reasonable)
Variance analysis, including budget to actual comparisons
Physical inventories
Control self assessment(such as this Guide and related Self-assessment
Questionnaire)
Internal auditreview of business units controls
Information and communications
Administrative information systems that provide necessary information to
the appropriate people, at the necessary level of detail, on a timely basis
Channels for employees to communicate suspected improprieties
upstream through other than a direct supervisor
Risk assessment-Management is responsible for assessing risks that could
undermine these objectives of financial statements:
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Establishing the existence/ownership of assets and liabilities
Proper valuation of assets and liabilities
Contain all transactions of the reporting period
Proper presentation and disclosure
Control environment
A control-conscious environmentis also necessary. It is an environment that
supports ethical values and business practices. Management is responsible for
"setting the tone" for their areas and encouraging the highest levels of integrity
and ethical behavior, as well as exhibiting leadership behavior that promotes
internal control and accountability.
The following steps are examples of this leadership behavior:
Communicate to employees that fraud and conflicts of interest will
not be tolerated.
Communicate to employees that University policies and procedures
are important and will be followed.
Make employees fully aware of their responsibilities, including
internal controls.
Monitor the internal controls system on an on-going basis.
SUSPECTED THEFT OR MISUSE OF ASSETS
SeeBusiness Policy and Procedure Manual Section 8:010 for procedures that
should be followed to report the loss of money, securities and property. A
written report is required, and in certain cases a telephone report.
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SEGREGATION OF DUTIES
No single person should:
o
record transactions and reconcile balances.
o handle cash and verify deposits.
o handle assets and reconcile perpetual records to physical
counts.
o enter or approve a check request and have the check returned
to themselves.
Segregation of duties is essential to effective internal control. It reduces the risk
of both erroneous and inappropriate actions. It is a deterrent to fraud. Key
functions that must be adequately separated are described above. When it is
extremely difficult to separate these functions, a detailed supervisory review of
related activities or transactions is required as a compensating control activity.
To ensure proper separation of duties, a person should never approve atransaction for which they are the payee.
REVIEWS BY MANAGEMENT
Perform budget to actual expense comparisons and investigate significant
differences. Routinely spot-check transactions, records, and reconciliations to ensure
expectations are met as to timeliness, completeness, segregation of duties,
propriety of the transaction, etc.
Follow up on unexpected results or unusual transactions. They might be
indications of theft or fraud. Ask for explanations of unexpected results
and ask for reasons for unusual transactions. Question the explanationsand reasons if they dont seem right, ask to see the items that were
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purchased, etc. (See Suspected Theft or Misuse of Assets section in this
Guide.)
Document your reviews of reports and reconciliations by initialing and
dating them and briefly indicating the resolution of any follow-up you
performed on unexpected results or unusual transactions.
RECONCILIATIONS
Broadly defined, reconciliationis a comparison of different sets of data in order
to ensure the accuracy and completeness of transactions. Integral parts of the
reconciliation process include identifying and investigating differences, and
taking corrective action, when necessary, to resolve differences.
To ensure proper separation of duties, the person who enters or approves
transactions or handles cash receipts should not be the person who performs the
related reconciliations.
Reconciliations should be performed timely, documented, and approved by
management.
Examples of important reconciliations that should be performed are:
Reconciling the dollar amount of cash and checks received per
original records (not per the receipt vouchers) to the dollar amount
actually deposited.
Reconciling actual payroll expenses to expected payroll expenses.
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APPROVALS
Approval authority should only be given to individuals with sufficient
authority and knowledge to recognize and challenge unusual transactions.
Control authority to approve with limits on both transaction amount
and number of employees granted authority
Review supporting documentation
Compliance with University policies and procedures
Question unusual items
Determine if budget exists
Determine if charges to grants are allowable
No "rubber stamps" or "blind" approvals
No sharing of passwords
No splitting of transactions to avoid higher approval levels
To ensure proper separation of duties, a person should never approve a
transaction for which they are the payee.If the reviewer notes any transaction(s)
that, after his/her investigation, is not a legitimate department expense, he/she
should contact his/her supervisor.Password security should be adjusted upon an
employee's termination, transfer, or change in responsibilities.
ASSETS
In addition to cash and inventory, all equipment and supplies, irregardless of
original cost, are consideredassetsof the University.
Physically secure your areas assets.
Cash, inventory, equipment, and supplies must be safeguarded from
unauthorized access, use or theft. Examples of access controls to safeguard
assets are locked doors, filing cabinets, and drawers, and safes. The number
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of individuals with access to the keys or lock combinations should be as few
as possible. Locks should be changed when employees who had keys to
significant amounts of assets terminate.
Conduct periodic counts of inventories.
Compare inventory counts to your departments perpetual inventory
book records and investigate differences.
Departments with significant inventories should maintain inventory
controls over the items. Inventory items received and issued should be recorded,
so that a current "book" balance is always known. Periodically, a person who is
independent of the inventory purchasing and inventory custody functions should
physically count the inventory items. The counts should be compared to the
"book" balances. Missing items should be investigated, resolved, and analyzed
for possible control deficiencies. Book records should be adjusted to the
physically counted quantities if missing items cannot be located.
Update the fixed asset information distributed to you bi-annually.
Record asset disposals and transfers between areas timely.
Fixed asset listings should be periodically reviewed and compared to assets
physically on-hand. Missing items should be investigated, resolved, and
analyzed for possible control deficiencies. Fixed asset listings should be updated
accordingly.
BANK ACCOUNTS
Individual schools, departments, and divisions cannot establish bank
accounts without the approval of MU Administrative Services.
PETTY CASH
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There are a limited number of petty cash funds on campus. The following
guidelines are for those departments with a petty cash fund.
Keep the petty cash fund in a locked, secure place.
Access to the petty cash fund should be restricted to the custodian and a
back-up person.
Petty cash should be disbursed only by the custodian (or a back-up person
in the custodian's absence).
Require original receipts in order to disburse petty cash. Maintain the
receipts in the petty cash fund box for reconciling.
The person to be reimbursed should indicate on the original receipt what
was purchased (if not obvious on the receipt), the business purpose, and
account and fund to be charged.
The original receipts should be approved and signed by an appropriate,
authorized individual, such as the supervisor of the person to be
reimbursed.
The petty cash fund should not be used for personal expenses, personal
loans, or the cashing of personal checks.
The Custodian is responsible for regularly reconciling the petty cash
fund. (The sum of cash plus original receipts plus any outstanding
reimbursements should equal the full, original amount of the fund.)
Periodic, surprise counts of the petty cash fund should be performed by
someone other than the custodian, such as a supervisor.
A petty cash fund remains open on the records of the Accounting
Services Department until you request that it be closed. The Accounting
Services Department performs an annual written confirmation of the petty
cash account balances.
Decide if you really need a petty cash fund. If not, contact the Accounting
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Services Department to close the fund. Deposit the petty cash fund
money, indicating on the receipt voucher that it is the closing of the petty
cash fund.
In the event of an unexplained petty cash shortage, see the section on
Suspected Theft or Misuse of Assets
CASH,CHECK, CREDIT CARD RECEIPTS
Procedures should be followed for depositing cash as follows:
o
Locations that deposit directly to the bank should follow the
procedures described in theCash Receipts Manual
o Locations that deposit with campus Cashiers should follow the
procedures described inBusiness Policy and Procedure Manual
Section 2.060.
Maintain a manual or electronic log of all cash, checks, and credit card
payments received (include check numbers). This log should list the
amount received, its form (cash, check, or credit card), the payor, and the
purpose of the payment.
Provide numbered receipts for all payments received, regardless of
payment type (cash, check, or credit card). Two-part forms should be
used, with one copy being kept and one copy provided to the payor.
All receipts should be properly accounted for and should agree with thelog used to record monies received.
Immediately restrictively endorse checks received with a stamp as
described inCash Receipts Manual.
Keep cash, checks, and credit card forms in a locked, secure, and
restricted facility, such as a drawer or safe, until they are deposited. Limit
who has access and keys/combinations to the locked facility.
http://www.umsystem.edu/ums/departments/fa/treasurer/manual/http://bppm.missouri.edu/chapter2/2_060.htmlhttp://bppm.missouri.edu/chapter2/2_060.htmlhttp://www.umsystem.edu/ums/departments/fa/treasurer/manual/crm204.shtmlhttp://www.umsystem.edu/ums/departments/fa/treasurer/manual/crm204.shtmlhttp://www.umsystem.edu/ums/departments/fa/treasurer/manual/crm204.shtmlhttp://www.umsystem.edu/ums/departments/fa/treasurer/manual/crm204.shtmlhttp://bppm.missouri.edu/chapter2/2_060.htmlhttp://bppm.missouri.edu/chapter2/2_060.htmlhttp://www.umsystem.edu/ums/departments/fa/treasurer/manual/ -
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Deposits must be made at least once daily unless otherwise authorized in
writing by Campus Administrative Services. If minimal dollar amounts
are received, deposits should be made when amounts total $100 or at least
weekly.
Prepare on-line receipt entries (CRRs) to the general ledger for each
deposit.
Require an employee with no cash handling responsibilities to verify that
the amounts actually deposited equal the amounts from the log or
receipts, not from the receipt voucher.
GIFTS
Restrictively endorse checks upon receipt by stamping as described in
Cash Receipts Manual.
Make a record of all incoming gift and endowment checks and cash.
Deposit the endorsed checks and cash with other types of cash receipts
immediately, using the Gift CRR application.
Reconcile your record of incoming gift and endowment checks and cash
to the Universitys gift system (ADIS) to ensure all amounts have been
received and deposited.
Notify the campus Development office upon receipt of non-cash gifts.
Appraisals of non-cash gifts must be made by an outside appraiser and
must be paid for by the donor.
(See Business Policy and Procedure Manual Section 2:130)
PAYROLL/PERSONNEL
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Non-exempt employees (employees eligible for overtime pay) must
complete timesheets of the number of hours they worked each day. This
is a federal requirement.
Timesheets must be approved and signed by appropriate supervisors.
Overtime requires the advance approval of a supervisor, i.e., before it is
worked.
Track each employee's sick leave and vacation time.
Access to payroll information should be very limited.
Direct deposit of paychecks is required for all new employees.
Do not release wage information externally without the written consent of
the employee (or a subpoena).
Question whether any independent contractors in your area should instead
be classified as employees. The U.S. Internal Revenue Service has rules
defining independent contractors versus employees. For more information
contact Administrative Services, 882-7254.
ACCOUNTS PAYABLE
Do not request checks to parties outside the University to be returned to
departments or employees.
Original invoices should be sent directly to Accounts Payable by vendors.
Don't request a rush check or an online (hand-drawn) check if the
issuance of the check is not critical.
Keep supporting documentation for auto-approved (recurring) check
requests in the departments.
Review invoices related to blanket purchase orders for reasonableness.
An employee should not also be paid as an independent contractor.
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TRAVEL
Spouse or guest travel is unallowable as a charge to federal grants and
usually unallowable as a University expense - look at meal and hotel
receipts for evidence of multiple travelers.
Alcohol is unallowable as a charge to federal grants - look at meal and
hotel receipts.
Encourage the use of the Universitys travel portal for information about
travel.
HUMAN RESOURCES
Ensure terminated employees are promptly removed from the Payroll
system.
Form I-9 (employment eligibility verification) data must be collected and
verified within three days of hire.
Any court-ordered garnishments, child support orders, and tax levies
should be forwarded immediately to your respective Human Resources
Office.
Employees must be paid at least minimum wage and be 16 years old.
PURCHASING
Do not permit purchases of personal items, even if employees will
reimburse.
Sales tax should not be incurred.
When purchasing products or services from employees and/or relatives of
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employees, follow conflict of interest and disclosure policies.
Competitive bids or sole source justifications must be obtained by the
Purchasing Department in advance of any purchase of $5,000 or more.
Encourage the use of the Universitys preferred suppliers in order to
receive special rates based on contracts the Universitys Purchasing
Services Department has negotiated.
Purchase Orders:
Obtain purchase orders in advance of purchases.
Procurement cards:
Procurement cards should be kept in a secure location.
The only person authorized to use a procurement card is the cardholder
whose name is on the front of the card.
Because of the potential personal use of procurement cards, the approvals
of such transactions should be serious and thorough. Any unusual items
or use of unusual vendors should be questioned. Personal use of
procurement cards is not permitted.
Original receipts, not copies of receipts, should be on file in
departments/schools for all procurement card transactions.
CONTACTS FOR ASSISTANCE
For assistance with any questions about internal control, please contact these
offices:
Cash, check, credit cards Cashiers Paul Toler 882-
4959
du
Payroll Payroll Amy
McKenzie
882-
6548
Mckenziea@missou
ri.edu
http://localhost/var/www/apps/conversion/tmp/scratch_5/[email protected]://localhost/var/www/apps/conversion/tmp/scratch_5/[email protected]:[email protected]:[email protected]:[email protected]:[email protected]://localhost/var/www/apps/conversion/tmp/scratch_5/[email protected]://localhost/var/www/apps/conversion/tmp/scratch_5/[email protected] -
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Accounts payable
disbursements
Accounti
ng
Rita Wells 882-
2483
u
Human resources HR Jatha
Sadowski
882-
4859
sadowskij@missour
i.edu
ROLE OF INTERNAL AUDIT
The UM Internal Auditing Department is responsible for performing internal
audits at the University. Internal audits assist management by providing
independent and objective analyses of activities and controls. Audit scopes can
range from a single process to all business activities in a division, department,
or school. Internal Auditing makes recommendations as a result of those
analyses. Internal Audit makes regular reports to the audit subcommittee of the
Board of Curators and the President on the results of internal audits and the
completion status of audit recommendations .The Administrative Services office
is responsible for coordinating the on-campus activities of all internal audits on
the Columbia campus and serves as liaison between internal auditors and
campus departments when appropriate. If your office is contacted by anyone
who represents themselves as internal auditors, contact Administrative Services
at 882-7348.
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CONCLUSION
BUSINESS Strategy perform a very important role to get success in ourbusiness. but it is necessary to put right strategy. Strategy is about making
choices. You should be able to see the impact of your strategic planning work
and how it will benefit the business through the following issues :Take one
analysis technique as an example,PEST Analysis.
As you work through the difficult categories of political, social, economic
and technological changes you may spot an opportunity or a threat much earlier
than you would have done normally.
This gives you a chance to think deeply about it, decide how it will
potentially impact on your business and then decide what you will do about it.
As you take action and watch the situation unfold, you see your competitors
scrambling to catch up.
How much of the full strategy process you need depends on your
situation, both the business and its competitive environment and also on the
time and resources you have .When Ive spoken to turnaround experts, they
believe in the strategy process but often there is only time for a limited amount
of work before the big decisions have to be made.
http://www.differentiateyourbusiness.co.uk/pest-analysis-the-way-to-understand-the-wider-environmenthttp://www.differentiateyourbusiness.co.uk/pest-analysis-the-way-to-understand-the-wider-environment -
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REFERENCE
BIBILIOGRAPHY-
STRATAGIC MANAGEMENT-M.COM
BUSINESS STRATAGY
WEBIOGRAPHY-
WWW.GOOGLE.COM
WWW.BUSINESSSTRATAGY.COM
WWW.STRATEGICMANAGEMENT.COM
http://www.google.com/http://www.google.com/http://www.business/http://www.business/http://www.strategicmanagement.com/http://www.strategicmanagement.com/http://www.strategicmanagement.com/http://www.business/http://www.google.com/ -
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