Solution
Abhishek answered on
Dec 04 2021
Running Head: MANAGERIAL ACCOUNTING 1
MANAGERIAL ACCOUNTING 3
MANAGERIAL ACCOUNTING
Abstract
Discussion of this assignment analyses the managerial accounting issues, which is observed in the organizational operations of Walmart. This assignment shows that the management team of this
and is not making its global investment strategies with the proper format. It delivers issues to this
and to gain high rates of revenues from the business. On this note, Walmart is implementing Fisherian theory and supply-demand tools to manage its financial operations in the global business. Moreover, the management team should create awareness to manage its financial resources in the proper place. It will help them to allocate its budget in the business with developed contexts.
Table of Contents
Abstract 2
Introduction of the Topic and the Organization: Walmart 4
Issues Identified in the Organization 5
Factors Contributing to the Problem 6
Lack of Proper Planning 7
Lack of Execution of Resources 8
Lack of Strategic Decisions 8
Lack of Presence of Value Statement 9
Economic Theories, Tools and Methodologies to Analyze the Problem 10
Economic Theories 10
Fisherian Theory 10
Keynesian Theory 11
Economic Tools 11
Opportunity Cost 11
Supply-Demand 12
Economic Methodology 12
Identification of the Problem 12
Analysis of the Financial Data 13
Solutions to the Problem 13
Conclusion 14
References 15
Introduction of the Topic and the Organization: Walmart
Managerial accounting is the
anch of accounting activities, which is concerned with the identification, measurement and analysis of accounting information. Managerial accounting helps in the proper analysis of organizational accounting operations. On this note, managers in the companies can apply managerial accounting within their financial operations.
It will help managers of the companies to make necessary decisions for the successful accounting management of the business. The primary focus of managerial accounting is the proper management of the accounting operation of the company (Claussen, 2018). With this aspect, managers in the business can determine their plans to achieve success. It offers scope in front of the managers to allocate their resources in its exact places for the achievement of a destined success graph based on the high rates of earning revenues.
Discussion of this assignment is focusing on the issues that Walmart is facing at the time of performing its managerial accounting operations. Factors that lead towards these issues are also analyzed in the discussion part. This assignment also offers solutions for the reduction of these issues from Walmart with success.
Walmart is one of the American multinational retail corporations and it operates its hypermarkets and departmental stores in different places around the world. Headquarter of this retail company is situated in Bentonville, Arkansas. In 1962, this company was formed by Sam Walton. Walmart has approximately 11,510 stores as well as clubs in 27 countries in the world. Within the business market of different countries, this retail
and is operating its retail business under 56 different names (Mazouni, 2018).
In its departmental stores, this retail
and offers different products and services to its potential customers. Games, electronics, movies and music are offered to the customers in Walmart. Therefore, clothing, footwear, jewelry, toys, health and beauty products are also available in the stores of Walmart. Reports show that Walmart is one of the largest retail companies in the world and it acquires approximately US$514.405 revenues through its business.
Issues Identified in the Organization
With the overview of the overall business activities of Walmart, it is noticed that the decision of the global investment decision serves financial risks to this
and. In that case, Walmart cannot achieve its destined graph of revenues from the business activities that it performs in its global business.
Therefore, there is the presence of risk in Walmart of losing money based on its investment process (Phillips, 2019). The global investment strategy of this retail company lacks the proper planning and that failed organizational operations, presence of failure in organizational operations of Walmart caused major loss to this
and of the US.
Furthermore, due to the ineffective business plan, the investment of the company is going in vain and that serves issues in front of the management team to acquire revenues from its international business (Montag, Lachmann, He
lich & Zweig, 2019). Cu
ency risk is also noticed in Walmart due to the involvement of global extension strategy in business. With this respect, this company faced risks in case of an exchange of cu
ency that has earned through their business.
It offered a negative impact on the assets of this retail
and of America (Li & Liu, 2018). Through this process, the investments of the company could not offer its successful revenues to this
and. Related interests of the business assets are affected due to the presence of cu
ency risk in the global investment activities of Walmart. Moreover, the payment system of this company is divided into different streams due to the presence of cu
ency risk in the global business of Walmart.
Transaction risk is noted as the other risk factors that Walmart is faced in the case of performing its global business extension activities. Presence of changes in the valuation of cu
encies in different countries creates unpredictable losses to Walmart. This process resulted in the low gain in the profit rates of this retail company (Hasseler, Ramachandran, Tarpeh, Stadermann & Santiago, 2020).
Moreover, due to the presence of different risks related to the financial operations of the company, the management team of this company cannot achieve desired values through their business. Therefore, financial sources are also implemented in its exact places and that serves issues to offer values in business for achievement of its success.
Factors Contributing to the Problem
Financial risks that are observed in Walmart are allied with the presence of different factors in this company. Factors that...