HO CHI MINH UNIVERSITY OF BANKING

SAIGONISB

EXAM PAPER
Module: Management Accounting
Fundamentals
Student’s full name:
Phạm Ngọc Thiện - 110321220169
Nguyễn Hà Thu Huyền - 110321220232
Vương Khải Tường - 110321220209
Phạm Nguyễn - 110321220120
Lưu Huỳnh Kim Ngân - 110321220106
Phạm Tuyết Như - 110321220140
Nguyễn Lê Ngọc Ánh - 110321220015
Class: IBP22D01-01

Ho Chi Minh City, March 30th, 2024

Mark (by number) Mark (by word) Examiner 1 Examiner 2
 Ho Chi Minh city

30th March, 2024

To The Esteemed Board of Directors

Subject: Proposal for Hiring Management Accountants to Enhance Business Operations

Dear Esteemed Board of Directors,

I hope this letter finds you well. In my capacity as CEO of Biti’s Company, I am writing to you
today to champion a strategic initiative that will propel our company towards long-term success:
the crucial need for a dedicated management accounting team. While Biti's Company has a rich
history and commendable achievements, navigating the complexities of the contemporary
footwear market demands a shift towards data-driven decision-making.
Management accountants play a pivotal role in the success and growth of any organization. Their
proficiency in financial analysis, forecasting, budgeting, and performance evaluation is essential
for guiding strategic objectives and helping to make well-informed decisions.

The footwear industry is currently undergoing a significant transformation. The impact of the
COVID-19 pandemic has permanently changed supply chains and consumer habits. The
emergence of new trends in athleisure wear and an increased emphasis on sustainability are
influencing market preferences. For these reasons, Biti's, like many other well-established
brands, is now at a critical juncture, facing both challenges and promising opportunities.
Consumers are becoming more discerning in their choices. Recognized global brands such as
Nike and Adidas, as well as luxury powerhouses like Louis Vuitton and Gucci, are gaining
substantial market share. Establishing brand loyalty in this rapidly changing landscape
necessitates a strategic approach that transcends mere intuition. This is where data-driven
insights play a vital role. Thus, Biti's must delve deeper into understanding customer needs and
preferences. Furthermore, management accountants possess the necessary skills to analyze
market research and consumer behavior data, uncovering valuable insights to tailor marketing
strategies and create products that resonate with the evolving consumer base. Emerging markets
and unexplored customer segments present exciting growth prospects for Biti's. Nevertheless,
successfully navigating these new territories requires a nuanced comprehension of local
economies and cultural inclinations. As a result, adopting a one-size-fits-all strategy will not be
adequate.
Furthermore, the inclusion of management accountants in Biti's expansion plans is crucial due to
their exceptional analytical abilities and proficiency in interpreting financial data. These
professionals can play a pivotal role in various aspects of the company's growth strategy. Firstly,
they can evaluate the economic feasibility of entering new markets, ensuring that Biti's makes
informed decisions. Additionally, they can identify areas within the organization where cost
optimization is possible, contributing to overall efficiency. Lastly, management accountants can
provide data-driven recommendations that will guarantee successful market penetration. By
embracing a data-driven approach facilitated by these experts, Biti's can effectively navigate the
challenges and capitalize on the opportunities presented by the evolving footwear industry. There
are several ways in which this can be achieved. Firstly, management accountants can analyze
data to gain insights into customer preferences, enabling Biti's to tailor its product development
and marketing strategies accordingly. Secondly, their expertise can be utilized to optimize
operations for global expansion, streamlining production processes and ensuring cost-
effectiveness and competitiveness in emerging markets. Lastly, management accountants can
contribute to data-driven risk management by forecasting potential challenges in new markets
and developing strategies to mitigate them, safeguarding Biti's during its expansion efforts.
Investing in management accountants is not solely about numbers; it signifies a commitment to
embracing change. Their expertise empowers Biti's to navigate the dynamic footwear landscape,
solidify its position in established markets, and unlock its full potential in new ones. Ultimately,
this paves the way for sustainable growth and continued success in the future.
Biti's Company faces both challenges and opportunities in this ever-changing landscape. In order
to capitalize on this situation, it is crucial to harness the potential of financial analysis and
strategic planning. This is where a committed management accounting team plays a vital role.
Management accountants play a crucial role in organizations by not only keeping track of
financial records but also by providing valuable insights and strategic guidance. Their ability to
analyze data and trends enables companies to make informed decisions that can drive success.
So, how can Biti's Company specifically leverage the benefits of management accounting? Let's
explore further:
Enhanced Decision-Making: The footwear sector is a fiercely competitive environment.
Making well-informed decisions based on data is essential for achieving success. Due to,by
conducting thorough cost analyses, management accountants can pinpoint opportunities for
improvement in product development, marketing initiatives, and pricing tactics. Moreover,
predictions on market trends guide decisions on product development, guaranteeing that we meet
the changing preferences of consumers. Consequently, this data-centric method guarantees that
our strategic decisions give us a competitive advantage.
Cost Control and Efficiency: Management accountants possess the skill to identify areas where
resources can be utilized more effectively. By thoroughly examining production processes,
sourcing materials, and evaluating overhead expenditures, they are able to identify opportunities
for reducing costs. By implementing targeted strategies, we can enhance manufacturing
processes, negotiate more favorable supplier contracts, and streamline administrative functions.
As a result, this leads to substantial cost savings, improved operational efficiency, and
heightened profitability.
Performance Evaluation: Management accountants play a crucial role in developing metrics
that assess the effectiveness of our strategies, campaigns, and departments. These metrics enable
us to pinpoint areas that require improvement, monitor our progress towards goals, and optimize
our investments. Moreover, they possess the ability to evaluate competitors' performance,
providing valuable insights into market trends and potential advantages. By ensuring Biti's
Company remains on track towards achieving its strategic objectives, management accountants
establish clear performance benchmarks and consistently monitor progress against them. They
can be likened to meticulous navigators, constantly observing our position in relation to the
planned course and making necessary adjustments to ensure we successfully reach our
destination.
Strategic Budgeting and Forecasting: Management accountants play a crucial role in helping
the board establish practical and attainable Key Performance Indicators (KPIs). They develop
precise budgets that efficiently distribute resources and support financial planning for the long
term. Besides that, their proficiency in predicting future trends enables them to prepare for
potential challenges or opportunities in advance. Consequently, this proactive strategy provides
us with a notable competitive advantage.
Bitis’s can optimize its management accounting by maximizing production costs, efficiently
managing capital, evaluating operational performance, and enhancing decision-making
strategies. These efforts contribute to financial risk management, business planning, industrial
process optimization, and increased profitability, ultimately bolstering its capital structure and
market competitiveness.
While hiring management accountants may appear as an additional line item on the budget, it's a
strategic investment in Biti's long-term success. Their specialized skills will be the cornerstones
for building a stronger foundation for the future, which are:
Fortified Financial Bulwark: Management accountants are going to keep Bitis stable for years
to come by proactively detecting and managing financial risks. They will withstand unforeseen
financial difficulties by serving as a bulwark for the company. Management accountants are also
architects of financial safeguards. Besides that, they establish robust financial controls and
procedures, ensuring the accuracy of financial reporting and safeguarding Biti's valuable assets.
This meticulous approach strengthens the company's financial hull, making it more resilient in
the face of unforeseen challenges. As a result, think of them as skilled shipbuilders, reinforcing
Biti's financial structure with robust internal controls that prevent leaks and ensure the ship stays
afloat.
Data-Driven Decisions, Greater Success: These specialists will ensure our business plans are
grounded in accurate data and realistic projections.Thus, This data-driven approach will lead to
more successful strategies, propelling Biti's growth.
In today's ever-changing business landscape, relying solely on intuition can lead to stagnation.
Biti's recognizes the importance of a data-driven approach to decision-making, which is where
management accountants play a crucial role. They act as data detectives, harnessing the power of
information to unlock valuable insights. By transforming raw data into actionable insights,
management accountants possess the expertise to analyze vast amounts of data, identifying
trends and patterns that may go unnoticed by others. This enables them to translate complex
financial data into actionable recommendations, empowering data-driven decisions that drive
growth. Additionally, they have the ability to identify profitable market segments, optimize
marketing campaigns based on customer behavior, and ensure resource allocation aligns with the
most promising opportunities. By leveraging data-driven insights, Biti's can mitigate risks,
maximize returns, and propel itself towards sustainable growth. Management accountants are not
simply number crunchers; they are the key to unlocking Biti's future success as data detectives.
Optimizing the Production Engine: Management accountants will provide insights that
pinpoint areas for improvement in operations. This will act as a tune-up for Biti's production
engine, resulting in increased efficiency and cost savings. A well-oiled production engine is the
lifeblood of any manufacturing company. But even the most efficient engine can benefit from a
tune-up. This is where management accountants step in, acting as Biti's resident efficiency
experts. Their keen eye for detail and analytical prowess can identify areas for improvement,
leading to significant cost savings and a more streamlined production process.
Enhanced Profitability, Secured Edge: The benefits of management accounting extend beyond
immediate financial gains. The best part about managing financial risks is that we can solidify
our company's financial structure. This, coupled with strategic planning based on accurate data,
allows us to optimize operations, expand into new markets, and solidify Biti's Company as a
leading competitor in the global footwear market.
While the initial cost of hiring management accountants might seem like a hurdle, the long-term
risks of not having them on board can be significant for Biti's. Here are some key areas where
Biti's could face challenges:
Missed Opportunities: Biti's may lose out on profitable prospects if a thorough financial study
isn't done. Potential markets may be found, profitability can be evaluated, and data-driven
insights for strategic expansion can be obtained from management accountants. They identify the
optimal resource allocation strategies, develop financial forecasts, and create data-driven
marketing plans that ensure Biti's expansion is not just successful, but sustainable in the long
term.
Poor Decision-Making: Decisions based on intuition or incomplete data can be detrimental.
Management accountants analyze market trends, customer behavior, and internal performance,
ensuring data-driven decision-making that maximizes returns. As a result, this data-driven
approach significantly increases the probability of success, ensuring Biti's resources are invested
wisely and deliver the greatest possible return on investment (ROI).
Financial Blind Spots: Complexities in the financial landscape can be easily overlooked
without expert guidance. Management accountants look for hidden problems, like rising costs or
unexpected changes in the market. This way, Biti's Company can avoid these dangers before they
cause trouble.
For example, if they see a material cost going up, they can help find a cheaper supplier. This
saves Biti's money and keeps the company healthy.

By having management accountants, Biti's Company can see the financial road ahead clearly and
avoid unexpected bumps.

Inefficiency and Waste: Hidden inefficiencies within production workflows can result in
resource depletion and diminished earnings. By scrutinizing production metrics, management
accountants identify critical inefficiencies, propose strategies for cost reduction, and suggest
enhancements to streamline processes.
Eroding Profitability: A combination of missed opportunities, poor decisions, and
inefficiencies can significantly impact Biti's profitability. Management accountants work to
optimize operations, minimize risks, and maximize profit margins.
Reactive Crisis Management: Without risk mitigation strategies, Biti's might be caught off
guard by unexpected financial challenges. Management accountants help anticipate potential
risks and develop proactive solutions, minimizing damage and ensuring smoother crisis
navigation.
Loss of Competitive Edge: Competitors who leverage data-driven decision making and
optimized operations can gain a significant advantage. Management accountants empower Biti's
to make informed choices, streamline processes, and remain competitive in the market.
By forgoing the expertise of management accountants, Biti's opens itself up to a multitude of
risks that could hinder its growth and long-term success. Investing in these professionals is a
proactive measure towards safeguarding the company's financial health and securing its future
With all due respect, I implore the Board of Directors to rethink their hesitation and provide
approval for the hiring of management accountants. Their assistance will improve our decision-
making and propel our business to new heights of success.

I appreciate you taking the time to consider this. With your help, I have no doubt that we can
maximize the abilities of our gifted group and advance Biti’s Company to new heights of
performance.

Best regarding,

CEO, Biti’s Company

References
Van Helden, G. J. (2005). Researching public sector transformation: the role of management
accounting. Financial Accountability & Management, 21(1), 99-133.
Angelakis, G., Theriou, N., & Floropoulos, I. (2010). Adoption and benefits of management
accounting practices: Evidence from Greece and Finland. Advances in accounting, 26(1), 87-96.