II.

CASE PROBLEM-Group Work

ABC Corporation wants to hire you as a consulting team to do a study of how it can improve
its management information system. The existing system is so old that it does not have
modern ways offered by technological advancement and modern management
philosophies. Financial information does not possess the qualities of being relevant, faithful
representation and other qualitative characteristics in order to enhance their value for
decision making purposes. General purpose financial statements make the stakeholders of
the company at a lost who are always confuse on the contents thereof.

Required: How do you negotiate your proposal on this professional engagement? What is
the process you have to consider in the preparation of an engagement proposal? What are
the things you must include in your engagement proposal?

PROBLEM STATEMENT

A. How can management system information be improved?

a. Existing system is so old that it does not have modern ways offered by
technological advancement and modern management philosophies.
b. Financial information does not possess the qualities of being relevant,
faithful representation and other qualitative characteristics in order to
enhance their value for decision making purposes.
c. General purpose financial statements make the stakeholders of the
company at a lost who are always confuse on the contents thereof.

OBJECTIVES

 To improve management information system of ABC corporation

 To develop a system wherein applicable in today’s technological enhancement
 To change or enhance the modern management philosophies of the corporation
 To provide financial statement that possess qualitative characteristics
 To provide a reliable and useful financial information to user
POINT OF VIEW:

Consulting Team of Management- are contracted for specific projects and tasks. Although some get
more involved, a consultant’s primary purpose is to evaluate and advise. Client organizations can then
choose whether to take advantage of consultants’ expert opinions and suggestions.

SOLUTION

As a hired consulting team the solutions that we can give is to advice ABC corporation to upgrade
their Management Information System to the modern one. Look for an information system expert that
can make a program wherein their data information about their company is stored and organize. They
may opt to use the Enterprise Resource Planning (ERP): This discipline ensures that all departmental
systems are integrated. MIS uses those connected systems to access data to create reports. Or
otherwise they may use Kaizen is based on the philosophical belief that everything can be improved:
some organizations look at a process and see that it's running fine; organizations that follow the
principle of Kaizen see a process that can be improved. This means that nothing is ever seen as a status
quo – there are continuous efforts to improve which result in small, often imperceptible, changes over
time. These incremental changes add up to substantial changes over the longer term, without having to
go through any radical innovation. It can be a much gentler and employee-friendly way to institute the
changes that must occur as a business grows and adapts to its changing environment.

ALTERNATIVE COURSE OF ACTION

1. Acquire an upgraded version of operating system that can run all their
programs needed.
2. Look for a software developer that can create the program that is suit to
their issue.
3. Apply the principle of enterprise resource planning so that all their
programs are integrated to each department.
4. Train all employees how to utilize such program
5. Use the KAIZEN cycle for continues improvement of both program and
employees that uses the software.
Required:

1. How do you negotiate your proposal on this professional engagement?

As a hired consulting team the ways to negotiate to them in order to improve their management
information system and modern management philosophies is to convince ABC corporation to
use the ERP or Enterprise Resource Planning and Kaizen to continuous improvement of the
program. By setting an objective that is in favor to them and guide them as they run through.

2. What is the process you have to consider in the preparation of an engagement

proposal?