TAILIEUCHUNG - Cost Accounting Traditions And Innovations - Chapter 17

CHAPTER 17 Emerging Management Practices After reading this chapter, you should be able to answer the following questions: Why does business process reengineering cause radical changes in how firms execute processes? What competitive forces are driving decisions to downsize and restructure operations? | CHAPTER Emerging Management Practices 7 LEARNING OBJECTIVES After reading this chapter you should be able to answer the following questions 0 Why does business process reengineering cause radical changes in how firms execute processes 0 What competitive forces are driving decisions to downsize and restructure operations 0 Why are the operations of many firms becoming more diverse and how does the increasing diversity affect the roles of the firms accounting systems s What benefits do firms hope to attain by adopting enterprise resource planning systems 0 Why are firms increasing their use of strategic alliances 0 What is open-book management and why does its adoption require changes in accounting methods and practices 0 What are the three generic approaches firms can take in controlling environmental costs INTRODUCING CarPoint Ford Motor Co. and Microsoft Corp. in a move that could transform the auto factory are creating a strategic alliance to develop an online build-to-order system that will let consumers customize their cars and order them on the Internet. The two companies announced a joint venture in which Ford will take a significant minority interest in CarPoint Microsoft s car-buying site. Financial details weren t disclosed. The popular Web site is being made independent of Microsoft but won t be spun off from the software company. While other automakers are being offered stakes in the new site Ford will be the lead partner and Microsoft will retain a majority interest in CarPoint. Lindsay Sparks general manager of CarPoint will be the chief executive officer of the new entity. http This isn t just a communication tool Jacques Nasser chief executive of Ford based in Dearborn Mich. said at a press conference. It s a different way of running our business. Mr. Nasser expects that coupling the virtual world to the physical world will cut costs and time out of what is still an inefficient manufacturing and distribution system. Until .

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