Part A 1 The text says that Toyota has focused on quality as

Part A 1. The text says that Toyota has focused on quality as its operations capability. Describe two (2) ways that Toyota\'s operations might have changed if it had focused on low cost instead of quality. 2. FedEx and the U.S. Postal Service compete for many of the same customers. Describe two (2) ways that their strategies for attracting customers are different. Part B Mary Ann has always loved to cook and is interested in starting a catering business. Being aware of the failure rate of new businesses, she is considering buying an existing catering business that is up for sale. The current owners claim that the business is highly profitable, but Mary Ann has her doubts. She wonders why the owners would be so interested in selling the business if it is such a money maker. Furthermore, the price that they are asking seems high to Mary Ann. Without any formal training in accounting, Mary Ann asks a friend, Rolanda, for advice. 1. Rolanda suggests that Mary Ann may benefit from the services of a noncertified public accountant. Describe two (2) types of services that could be provided. 2. The auditor\'s report has come back and Mary Ann is reviewing the financial statements. The current balance sheet shows that the business has more liabilities than assets. Why would this explain the need to sell the business? Provide two (2) supporting facts. 3. Rolanda suggests that, even with the negative owners\' equity, this business might still be worth buying. Describe one (1) other indicator, a financial term found within the auditor\'s report that they should consider for this decision.

Solution

PART A

Explanation (1)

(a) Toyota Focuses on various cost cutting methods by following and consistently improving these methods like lean strategies, Effective decision, Vendor management, Distribution management. Toyota also follow kaizen. In kaizen, all the employees are incuded who are goes through training to work systematically and with improvement in order gain more efficiency and quality. Toyota also focus on implementimg various quality principles in organisation also.

(b) Toyota has highly adaptable, Efficient, quality production and supply network which helps toyota in solving issues more easilty with proper identification. This helps in controllimg the cost and forsee opportunities.

Toyota has implemented various control which helps in detecting various vulnerabilities

Explanation (2)

Fedex attract customers through product differentiation. It attracts through technology and reliability and featurea of product. There is a system of package tracking also which attract business customers also.

Fedex also uses the promotion strategy which attracts customers through placing large billboards in public area.

U.S. Postal service attract customers through pricing strategy. This is known as \'flat rate\' service. It will be the set price of the product regardless of the size of product.

U.S. Postal service also uses the place strategy. It gives services like pick and drop from customers homes and also offers various location which are close to customer homes.