Question:
Discuss About The Financial And Managerial Accounting Mason?
This study deals with four type of information that every company need for competing with other companies (Williams, 2014). This information includes external drivers, strategy, performance as well as resources and relationships. Each of the information is composed of different specific elements in the PWC Value Framework that guides management for analyzing the organizational health as well as organizational performance. In addition, each of the 17 elements had been evaluated in terms of comprehensiveness as well as accessibility for finding organizational health and organizational performance of Akzonobel in Netherlands (Akzonobel.com, 2017).
Akzonobel is one of the Dutch Multinational Company that helps in creating everyday essentials (Akzonobel.com, 2017). This particular company operates in the chemicals industry and leads as a global paints as well as performance Coatings Company that supplies essential ingredients, essential color to industries and consumers in and across the world. Akzonobel was founded in the year 1994 and headquartered in Netherlands. Akzonobel operates in three main business areas and corporate functions that have equal business responsibility and autonomy in action.
On analysis, it is found out that the major strategic objective of Akzonobel is to carry the supportable progress in form of earnings that takes place from expanded selection as it is comprised by layouts and products. The company had set out list of comprehensive targets that will be achieved by the year 2030 as it covers main three areas such as economic, environmental as well as social that complies with sustainable development. The main goals of Akzonobel is to achieve strategic advantages by taking into account the capabilities or in other term production of the business for developing good business residency in a challenging, safe and pleasing setting for their personnel as well as enhancing the valuation of stakeholders of business enterprise (Wild, Shaw and Chiappetta, 2012).
It is important to understand the fact that the strategic objectives of the company named as Akzonobel can be easily accessed by looking at the integrated report of the business for the year 2016. Here, the main objectives are already mentioned in the form of list that aligns with the objectives where the company has to face any risks or challenges for attainment of future objectives of the firm. However, the strategic objectives of Akzonobel can be easily accessed for analyzing the organizational healthcare. It is understood that the quality of organizational health information for the element named as tactical objectives that are mention in the PWC Value Framework is considered to be good and simply accessible in the integrated report that is well-formatted and easy for considerate purpose (Wild and Shaw, 2012).
At Akzonobel, future sustainability developments are already planned by the World Business Council where they will attain sustainability development by the year 2050. This can be attained where customer durables are predictable to last longer as well as reprocessing of packing will be done that are clearly mentioned in the business models (Whitecotton, Libby and Phillips, 2012). By the year 2050, the World Business Council had forecasted that people will only use five tons of non-renewable materials down as compared to today that is 85 tons. Akzonobel build on strong chemical platforms that aim at delivering profitable growth in some of the selected markets. There are several challenges present in the Brazilian economy that Akzonobel had to face. The Unique Chemical Island business model aims at delivering a healthy presentation from both costs as well as sustainability perspective. Most of the innovative companies of today are acceptance ever-evolving business models that aim at offering a clear link to longer-term financial achievement as a whole.
The business model of Akzonobel can be easily retrieved from the annual report of the business for the year 2016. There is clear mention of the business models in the annual report of Akzonobel and this help in understanding the business model in easier way. It is important to highlight the fact that information relating to business model can be easily manageable from the annual report of Akzonobel where it is clearly formatted and easy accessible (Weygandt, Kimmel & Kieso, 2015). However, it can be decided by saying that quality of the society health for the element business model in the PWV Value Framework is good.
At Akzonobel, they believe in performing business inherently that involves risk-taking activities. They believe in seeking help from balanced risks where the company strive to become successful as well as respectful company. Here, risk management is one of the essential element in the corporate governance as well as strategy development activities.
At Akzonobel, they aspire to be become highest standards of corporate governance as well as seek to constantly improve and improving corporate governance enactment that emphasizes transparency and surrounding a maintainable philosophy of long-standing worth formation (Warren, Reeve & Duchac, 2013).
The corporate governance of Akzonobel can be easily retrieved from the annual report of the company. The data is certainly accessible from the annual report of Akzonobel and it is well-formatted and easy to understand as well. It is thereby noted that the data about the element Corporate Governance has been mentioned and concise properly under different sub headings. There is clear representation of governance in the report and determined that the quality of the organization health for the element governance in the Value Framework is good.
The risk management framework of Akzonobel seeks to deliver sensible declaration where the corporate objectives can be attained in accordance to the customer obligations (Sowmya & Mounika, 2016). The framework is aligned with the Enterprise Risk Management that controls the systems as well as major business risks that is constantly reviewed by the Audit Committee as well as Supervisory Board. Akzonobel constantly attempt to nurture a high awareness of corporate risks as well as internal regulator that gears up towards presenting risk appetite and rendering a transparency in the business processes as a whole. Furthermore, the Executive Committee of Akzonobel are mainly accountable for managing the associated risks with the activities and establishes satisfactory operational of suitable risk administration as well as regulator schemes.
The risk management of Akzonobel can be easily retrieved from the annual report of the company. The data is definitely accessible from the annual report of Akzonobel and it is well-formatted and easy to understand as well. It is thereby noted that the information about the element risk management has been mentioned and summarized properly under different sub headings (Shim and Siegel, 2012). There is clear representation of risk management in the report and determined that the quality of the organization health for the element risk management in the Value Framework is good.
The remuneration report of Akzonobel highlights the remuneration policy as well as remuneration paid to members of the Board of Management for the year 2016. In addition, the remuneration and separate contracts of the Board members of the Board Management as resolute by the Supervisory Board. The remuneration policies take into account all structures and policies that relates to the remuneration as well as employment contracts of the Board members management that aligns with the Dutch Corporate Governance Code. The remuneration policies of Akzonobel has the objective to provide remuneration in a firm so that there is retention and engagement of members of the Board Management as top managers of main intercontinental business enterprise at the time of protecting and promoting objectives of Akzonobel. The remuneration structure design of Akzonobel supports both short-term as well as long-term objectives. Furthermore, the remuneration policies of Akzonobel align properly with the Board that works well to provide market with a competitive remuneration that uses medium levels of the peripheral marketplace as an orientation point (Shiller, 2012).
The remuneration report of Akzonobel can be easily retrieved from the annual report of the company. The data is easily accessible from the annual report of Akzonobel and it is well-formatted and easy to understand as well. It is thereby noted that the information about the element remuneration has been mentioned and summarized properly under different sub headings. There is clear representation of remuneration in the report and determined that the quality of the organization health for the element remuneration in the Value Framework is good.
At Akzonobel, the tangible assets are treated as financial assets of the firm. From the balance sheet figures of Akzonobel, it can be noted about the financial position of the company as a whole (Pretorius & Ronan, 2015). The current assets are shown in the balance sheet of Akzonobel for the year 2015 and 2016. The current assets of Akzonobel are treated as tangible assets that are actually financial assets for the company. From the information gathered from the annual report of Akzonobel, it is noted that the financial assets takes into account inventories, current tax assets, trade receivables as well as cash and cash equivalents. There is constant increase in the total financial assets of Akzonobel from the year 2015 to 2015 and it shows that the company has strong financial condition during this period.
After evaluating the annual report of Akzonobel for the year 2016, there was nowhere mentioned about financial assets. This leads to confusion among the financial users when they face difficulty to identify the financial assets from the balance sheet of Akzonobel. It is recommended to Akzonobel that they should include the terminology of financial assets in the annual reports so that the users can easily track the information and data for research purpose. To that, there was clear mention about current assets in the balance sheet but financial assets lack proper information and data (Otley & Emmanuel, 2013). However, it is noted that the accessibility of financial assets is not easy and determined that the quality of health for the element financial assets in the Value Framework is bad.
The non-current assets are treated as intangible assets for Akzonobel where the non-current assets are intangible assets are the physical assets. From the annual report of Akzonobel, it is noted the balance sheet values as well as list of non-current assets are easily accessible (Noreen, Brewer and Garrison, 2012). This takes into account Property, Plant and Equipment, deferred tax assets, investments in associates and joint ventures, other financial non-current assets and intangible assets. From the balance sheet of Akzonobel, the total non-current assets increased from 2015 to 2016.
After evaluating the annual report of Akzonobel for the year 2016, there was nowhere mentioned about physical assets. This leads to confusion among the financial users when they face difficulty to identify the physical assets from the balance sheet of Akzonobel. It is recommended to Akzonobel that they should include the terminology of physical assets in the annual reports so that the users can easily track the information and data for research purpose. To that, there was clear mention about non-current assets in the balance sheet but physical assets lack proper information and data (Needles, Powers & Crosson, 2013). However, it is noted that the accessibility of financial assets is not easy and determined that the quality of health for the element physical assets in the Value Framework is bad.
The customer of Akzonobel includes consumers, paint distributors in and across the world and has large retail outlets like B & Q, OBI and Leroy Merlin. Akzonobel leads as a supplier for performance of coatings with strong product technologies as well as brands (Needles & Crosson, 2013). The high quality products of Akzonobel are used by the clienteles in and across the world for protecting and enhancing everything from ships, aircraft, cars, architectural components like building products, operational steel and flowing and consumer goods like appliances, furniture and beverage cans. Akzonobel believes in providing value to their customers, employees, investors as well as society so that the company is in better position and aims at achieving tactical idea of foremost market positions that delivers foremost presentation.
After evaluating the annual report of Akzonobel for the year 2016, there was nowhere mentioned about customers in clear ways. In order have clear information and data about customers of the company, the financial user need to go through the annual report again. However, it is noted that the accessibility of customers is not easy and concluded that the quality of health for the element customers in the Value Framework is bad.
From the annual report of Akzonobel for the year 2016, it is noted that people means employees, trade unions, work councils as well as bargaining councils and educational institutions (Mowen, Hansen and Heitger, 2012). Akzonobel recognizes the benefits of maintaining as well as fostering the strong relations with the stakeholders through transparent communication. In addition, the continuing incorporation of the workforces is openly transferred from recent learned business to Akzonobel. The management of Akzonobel is of the opinion that employees are the real assets of the business and that will help in attainment of future success that nurtures the services, aptitude and capability of the overall workforces working for the firm.
The data about people and culture of Akzonobel can be easily retrieved from the annual report of the company. The data is easily accessible from the annual report of Akzonobel and it is well-formatted and easy to understand as well. It is thereby noted that the information about the element people and culture has been mentioned and summarized properly under different sub headings (Miller-Nobles, Mattison & Matsumura, 2017). There is clear representation of people and culture in the report and determined that the quality of the organization health for the element people and culture in the Value Framework is good.
The strategic focus of Akzonobel is to drive innovation for supporting organic growth that is gathered momentum. The company had launched a series of products that offers various profits in terms of sustainability outline. For instance, Akzonobel presented an ingredient for detergent makers that allows in meeting severe conservational guidelines and accepted by the US Food and Drug Administration. The company had given major emphasis upon digital innovation as it is the main area of attention and plays major role in product development as well as how the company works with the customers (Kensinger, 2013).
The information about innovation of Akzonobel can be easily retrieved from the annual report of the company (Eilifsen, et al., 2013). The information is easily accessible from the annual report of Akzonobel and it is well-formatted and easy to understand as well. It is thereby noted that the information about the element innovation has been mentioned and summarized properly under different sub headings. There is clear representation of innovation in the report and decided that the quality of the organization health for the element innovation in the Value Framework is good.
Akzonobel aims at continue building brands as well as using the product and margin management approaches so that they can achieve adequate profitability levels. The mitigating actions employed by Akzonobel will be build strong brand strategy for their employees (Edmonds, Tsay and Olds, 2012). Akzonobel occupies the topmost position in the decorative paints in and across the world. Akzonobel continues to drive brands with consumer tested communication as well as better rights in the required way. Akzonobel continues to build ways for strengthening the regional professional brands after clearly defining product offer, clear benefit claims as well as improved packaging. The brands of Akzonobel are fully aligns with the Planet Possible sustainability agenda.
The information about brands of Akzonobel can be easily retrieved from the annual report of the company. The information is easily accessible from the annual report of Akzonobel and it is well-formatted and easy to understand as well. It is thereby noted that the information about the element brands has been mentioned and summarized properly under different sub headings. There is clear representation of brands in the report and resolved that the quality of the organization health for the element brands in the Value Framework is good.
The main focus of Akzonobel is to increase the level of productivity as well as efficiency in and across the business in terms of supply chain and operations. In addition, a large scale alteration is done on the combined on the supply chain that was intended to make more effectual in production, supply, and logistics as well as enables cost lessening and increase in the level of productivity (Edmonds et al., 2016).
The information about process and supply chain of Akzonobel can be easily retrieved from the annual report of the company. The data is easily accessible from the annual report of Akzonobel and it is well-formatted and easy to understand as well. It is thereby noted that the information about the element process and supply chain has been mentioned and summarized properly under different sub headings. There is clear representation of process and supply chain in the report and determined that the quality of the organization health for the element process and supply chain in the Value Framework is good.
At Akzonobel, there is 28% reduction on operational eco-efficiency footprint from the year 2009. Akzonobel believes in continuous building on solid foundation of operational excellence for driving growth as well as sharpening focus on delivering more value for people, customers and shareholders (Demski, 2013). Akzonobel have stronger operational as well as monetary groundwork for adapting to marketplace challenges as well as grasping development chances after closing adjustments as well as working capital requirements. Akzonobel is now a stronger as well as agile business with superior brands that has worldwide existence and solid operative and monetary groundwork. In order to drive at operational level, Akzonobel work with main key process that is reinforced by a series of actions that help the company to endure on planned path as well as taking performance in to next level.
Information about organizational performance is easily accessible from the annual report of Akzonobel. The information is related to operational factors that are presented in a well-formatted way in the annual report of Akzonobel. The information is properly mentioned in bullet points that make the financial user easy to understand and interpret. However, it can be determined that the quality of performance for the element operational in the Value Framework is good.
At Akzonobel, they build the capability as well as engagement with the employees and partners for delivering the performance and growth that contributes to economic development as well as health and well-being (Davis and Davis, 2012). The sustainability agenda mainly explains improvement of well-being of the employees and others that are present in the value chain by rendering innovative products as well as processes. Some of the economic and political uncertainty can be noted where the market trends in the second part of 2016 includes for the marine as well as oil and gas industries that are predictable to continue in the first half of 2017. Akzonobel has physically enhanced their ability to retort for growths in the market as well as taking measures for dealing with higher raw materials prices in an inflationary setting (Bhimani et al., 2017).
Information about organizational performance is easily accessible from the annual report of Akzonobel. The information is related to economic factors that are presented in a well-formatted way in the annual report of Akzonobel. The information is properly mentioned in bullet points that make the financial user easy to understand and interpret. However, it can be determined that the quality of performance for the element economic in the Value Framework is good.
For the year 2016, Akzonobel employs total of 46,000 people. There is increase in the number of employees because of new hires in developing regions as well as people joining from the learned BASF Industrial Coatings business (Bloomfield, 2015). There is an urgent need to listen as well as involve with an ever-widening field of stakeholders in terms of communal accountability that need an extra courtesy to transparency, social impact assessment of activities as well as concern regarding fair trade and tax avoidance by large multinational corporations. The main aim of Akzonobel is to benefit the creation of more social value. Here, it is understood that social value can be enhanced by constant focus on safety as well as aptitude expansion and influence towards different communal accomplishments (Crosson & Needles, 2013).
Information about organizational performance is easily accessible from the annual report of Akzonobel. The information is related to social factors that are presented in a well-formatted way in the annual report of Akzonobel. The information is properly mentioned in bullet points that make the financial user easy to understand and interpret. However, it can be determined that the quality of performance for the element social in the Value Framework is good.
Akzonobel had announced relocation as well as development of large organic peroxides factory in the Tianjin region. The company utilizes state of the art technology as it help in meeting new as well as strict safety and conservational values that was presented by the Chinese Government (Braun et al., 2014). The company prioritizes carbon footprint administration through the value chain and leverages conservational values formation for driving financial performance in the most appropriate way. Akzonobel confronts with substantial costs that arise from environmental laws as well as regulations that take into account obligations for eliminating or limiting the effects on the setting of the disposal or releasing of certain wastes or substances at different sites. The conservational matter includes alleged discharge of chemicals or waste materials in different countries (Clark and Baker, 2012).
Information about organizational performance is easily accessible from the annual report of Akzonobel. The information is related to environmental factors that are presented in a well-formatted way in the annual report of Akzonobel. The information is properly mentioned in bullet points that make the financial user easy to understand and interpret. However, it can be determined that the quality of performance for the element environmental in the Value Framework is good.
Akzonobel aims at securing a leadership position in all the market that the company actually serves. In the year 2016, Akzonobel continues to implement commercial excellence programs and these programs had been incorporated by the company by using the tools such as better understanding all customer segments, developing appropriate go to market models as well as enhancing sakes force efficiency and efficiency (Cherneva, 2012).
Information about organizational performance is easily accessible from the annual report of Akzonobel. The information is related to segmental that are presented in a well-formatted way in the annual report of Akzonobel (Breuer, 2013). The information is properly mentioned in bullet points that make the financial user easy to understand and interpret. However, it can be determined that the quality of performance for the element segmental in the Value Framework is good.
At the time of determining level of materiality, Akzonobel actually consider the issues that relates to material that has the capability to influence the capability of the company by creating as well as sustaining value for the stakeholders of the firm in an adequate way. The Board Management of Akzonobel had agreed and measured that the tactical objectives of the company Akzonobel and highlights the Key Performance Indicators that are clearly mentioned in the annual report of Akzonobel. The company needs to constitute the material issues of Akzonobel. Therefore, material issues are clearly aligned with the approach of Akzonobel for managing the risks in the most appropriate way (Brewer, Garrison and Noreen, 2013).
Conclusion
From the above study, it is concluded that annual report as well as integrated report of Akzonobel plays major role in getting information regarding the company. After that, detailed analysis of Akzonobel help in getting insights of information about the financial condition of Akzonobel based on PWC Model. Therefore, the model properly explains different aspects such as organizational health and organizational performance of Akzonobel. After close evaluation of several elements in PWC Value Framework, it can be stated that both the health and performance of Akzonobel is in better position.
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