Strategic allocation of financial resources.

 

 

Examining the relationship between the Activity-based costing, balanced scorecard and strategic allocation of financial resources. Then,
use the Bible, Keller textbook, and other sources to provide biblical application of the concepts.
Support by citing at least 4 peer-reviewed journal/scholarly articles.

Sample Solution

Strategic allocation of financial resources

Finance is that human activity whereby we allocate or exchange resources with respect time. The history of finance is the history of human creativity and social cooperation applied to make the earths God given resources more productive. Activity-based costing (ABC) is a costing method that assigns overhead and indirect costs to related products and services. This accounting method of costing recognizes the relationship between costs, overhead activities, and manufactured products, assigning indirect costs to products less arbitrarily than traditional costing method. A balanced scorecard is a performance metric used to identify, improve, and control a business`s various functions and resulting outcomes.

oses. Here is how Krave performs with respect to its competitors’ products comprising Nestle Nesquik, Nestle Choco Shreddies, Tesco Choco Pillows and Weetabix Chocolate. (Figure 4) (Media, 2020). Figure 4 An interesting side note, we observed that Tesco, while a major market retailer for distribution of Kellogg’s Krave also houses a product that is near equal in terms of taste and design of product called Tesco’s Choco Pillows. Even the price is 50 % of the Krave brand. While there was insufficient data to find the user consumption in the UK, it is important to point out possible in-store competition within Tesco Stores for Krave. Krave is distributed in the UK, US, France, Germany, Ireland, Italy and India. It was introduced in the UK and Ireland in 2010. It was introduced in France and Germany as ‘Tresor’ in 2010. It was introduced in the US in 2012. It was introduced in India as ‘Kellogg’s Choco Fills” in 2017. Figure 5 Figure 5 is a graph about the penetration of Krave across various markets. An interesting point to note was that even within the European market, Krave was very popular in France. A possible approach was to discern the reasons behind this and deconstruct what we could adapt for the UK/I market. Consumer Trends A significant impact of Covid 19 on the breakfast cereal industry within the UK are a diversification of consumer consumption patterns into two broad categories. One segment has prioritized healthier breakfasts (Ex. Kellogg’s Fruit & Fibre) while the other has doubled down on more indulgent and unhealthier options for breakfast (Ex. Kellogg’s Crunchy Nut). (Weinbren, 2020). Some significant statistics from a 2019 survey among the UK population shows their current attitudes towards food. (Statista, 2019) 1. 27.48% of respondents prioritize the nutritional information while 26.79% prioritize the ingredients involved in their cereals. 2. 40.42% of respondents eat a healthy and balanced diet “very often”, while 10.1% eat it “always”, thus showing a huge preference for healthy food. Also, on looking at the data supplied by Kellogg’s on Krave (Figure 6) we segmented the current Krave consumers into the following. Table 1 Precautions: Though children cover a huge part of the market, we have to take major precautions to not advertise to children below 12 years as it violates Kellogg’s policies. In essence, the major players who influence the purchasing of Krave cereals is teenagers (15+) and parents (20 – 34). Further on we shall be designing our marketing efforts to increase purchase behaviour among both these segments.

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