MBA: Accounting & Finance Y1S2

Session 1 (Online) 05.03.2022

Part 1: Introduction
Part 2: Part 2: Unit 1: Managing the Organisation

Part 1: Introduction
 General
 Assignment

General
Congratulations to all of you on taking up the challenge on this journey and going strong.
Introduction & background of cohort
Happy learning and enjoy the journey; count on your positive attitude towards the learning
process. Challenges of online sessions. Interactions.
How we shall proceed: self-learning; I shall prepare/ present brief notes; expect you to
participate; practice questions & solutions; highlighting & emphasis on important parts. Short
breaks.
Recorded session link to be posted on Moodle, as well as notes & documents. One link only.
Use same recurring link for online sessions.
Take a look at the Module Specification Sheet (to be posted on Moodle)
18 units, 7 modules in the Manual; how to cover?
No hard rules to follow! I may post, in advance on Moodle, the topics to be covered.
Read the Units in advance to have an overview of the topics
Exam paper structure
Class representative?
Assignment
Show the assignment
Assignment, to be posted on Moodle; already approved by Progamme Manager. Shall discuss the
content briefly at Part 2 of session.
Assignment submission: 09.04.2022, for Session 2

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Send soft copy to me by email (on MSS), with copy to [email protected].
I shall acknowledge by return email; if not received any acknowledgement from me within 3
days, please send me a reminder with copy to PM.
Refresher: Learning the basics: what do we look for in an assignment? 30 marks
Marking scheme: presentation & style, visible feature; evidence of reading/application of theory;
Logical development/discussion of the topic; Development of insight; Introduction, Conclusion
Emphasis on presentation: Table of content, Introduction, Conclusion, formatting, small
paragraphs, automatic numbering? Refer to OU Guide to writing assignments
Cover page: title of assignment; module; name of tutor, Learner name and ID, submission date.
Table of content (ToC): in enough detail, different paragraphs heading, sub paragraphs; avoid
showing a ToC in a few lines.
Main body: numbering, main paragraphs, sub paragraphs, diagrams, figures, tables; write short
concise paragraphs; avoid bullet points and lengthy prose paragraphs, use numbering; automatic
numbering?
Reference: comprises two components:
• In-text referencing, i.e. acknowledging the parts that you cite from other sources within the
body of your work.
• A Reference List or Bibliography at the end of your work, i.e. a list of all the sources cited in
your text, as well as all other sources you consulted and found helpful during your research.
There are different referencing conventions that are favoured across different fields of study and
educational institutions. At the Open University of Mauritius, the Harvard System is
recommended. Table 2.3 , page 10 ( of OU guide ) provides examples, both for compiling the
Reference List or Bibliography and in-text referencing, of the different kinds of sources that you
could use.
in text (Author and year of publication)
Reference list: Author, year of publication, title of publication(italics) , press , place, page
numbers

Some examples of most commonly used sources by Learners.

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 In-Text Reference List/ Bibliography Example
Material Example
Type
Book: Single (Holt 1997) Holt, DH 1997, Management principles and practices, Prentice-Hall,
author or Holt Sydney.
(1997) wrote
that...
Book: (Australian Australian Bureau of Agricultural and Resource Economics 2001,
Organisation Bureau of Aquaculture development in Australia: a review of key economic
as Author Agricultural issues, ABARE, Canberra.
and
Resource
Economics
2001)
E-book (Aghion & Aghion, P & Durlauf, S (eds.) 2005, Handbook of economic growth,
Durlauf Elsevier, Amsterdam. Available from: Elsevier books. [accessed 4
2005) November 2004].
Journal (Liveris Liveris, A 2011, 'Ethics as a strategy', Leadership Excellence, vol.
Article: 2011) 28, no. 2, pp.17-18. Available from: Proquest [accessed on 23 June
Electronic 2011].
Database
Web (Department Department of Industry, Tourism and Resources 2006, Being
Document of Prepared for an Influenza Pandemic: a Kit for Small Businesses,
Industry, Government of Australia, Available from:
Tourism and <http://www.innovation.gov.au> [accessed on 28 February 2009].
Resources
2006)
Website (Australian Australian Securities Exchange 2009, Market Information. Available
Securities from: http://www.asx.com.au/professionals/market_information/index.
Exchange htm> [accessed on 5 July 2009].
2009)

Just a website as a reference?

Reference list/ Bibliography: Show in alphabetical order
Word limit: normally 3000 words, modified to 3000-3500 words, excess ??
Make it attractive and colourful, submitting online
Submit in PDF or word; save as Your surname, initials & A&F (ex: Moonisamy D, A&F)
Content: assignment: based on Unit 1 of the manual: (read Unit 1, do some additional research
before attempting the assignment; your input? Encourage critical thinking and analysis; read
references critically, think out of the box; finally pay attention to presentation features)
Show model assignment for you to consider the basics of formatting, features to include for a
good presentation, etc.
In 2 parts?
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Questions from the floor

Part 2 (theoretical topic)

Module 1: managing the organisation
Management functions: discussion
 Decision-making : good decisions can only result from diligent accumulation
and evaluation of information. This is where managerial accounting comes in – providing
the information needed to assist the decision making process.

 Planning: A business must plan for success. Planning is about thinking ahead, to decide
on a course of action to reach desired outcomes.
At different levels (operations, administrative, management)
Constraints?

 Strategy: Strategic planning ultimately defines the organisation. Specific strategy-setting

can take many forms, but generally includes elements relating to the definition of core
values, mission and objectives.

o Core values: An entity should clearly consider and define the rules by which it
will play. Core values can cover a broad spectrum involving concepts of fair play,
human dignity, ethics, employment, promotion, compensation, quality, customer
service, environmental awareness, etc.

o Mission : a mission statement provide a snapshot of the organization and provide

a focal point against which to match ideas and actions. They provide an important
planning element because they define the organisation’s purpose and direction.

3 essential components
Key market: the target audience.
Contribution: the product or service.
Distinction: what makes the product unique or why the audience should buy it over
another.

Mission of the Open University

Use technology and flexible mode of teaching to serve society, transform lives and make
high quality education, lifelong learning, and training accessible to everyone while
promoting excellence in research.

Mission of organisation of your choice?

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 o Objectives :must include delivery of goods or services while providing a return

 Positioning
An important part of the planning process is positioning the organization to achieve its goals.
Positioning is a broad concept and depends on gathering and evaluating accounting
information.

 Cost-volume-profit analysis
Nature of cost behaviour and how changes in volume impact profitability.
Managers call upon their internal accounting staff to pull together information and make
appropriate recommendations.
Break even analysis, achieve target income, etc.

 Global trade and transfer: consider laws about tariffs in foreign country, taxes and
shipping, conditions, constraints, etc

 Branding, pricing, sensitivity, competition

In positioning a company’s products and services, considerable thought must be given to
branding and its impact on the business.
Decisions about positioning a company’s products and services are quite complex. The
prudent manager will need considerable data to make good decisions. Management
accountants will be directly involved in providing such data. They will usually work side-
by-side with management in helping them correctly interpret and utilise the information.
Pricing: decisions must be balanced against costs and competitive market conditions
Competition: needed to determine how sales and costs will respond to changes in market
conditions.
 Budgets: outline the financial plans for an organisation.
Operating budgets: anticipated revenues and expenses of an organisation.
Capital budgets: relating to new facilities and equipment
Financial: assess financing needs, including an evaluation of potential cash shortages.
These tools enable companies to meet with lenders and demonstrate why and when
additional support may be needed.

 Directing: to realise a plan requires the initiation and direction of numerous actions. Well
co-ordinated and timed. Resources must be ready and authorisations in place to enable
people to act according to the plan.

 Costing (cost accounting; costing methods, job/process/ABC; costing concepts,

absorption/direct costing)

 Analysis: Certain business decisions have recurrent themes, for example whether to
outsource production and/or support functions, what level of production and pricing to
establish, whether to accept special orders with private label branding or special pricing.
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 To take decision, how? Why? What information?

 Controlling: Things rarely go exactly as planned, and management must be able to

monitor and adjust for deviations. Exploration of alternative corrective strategies to
remedy unfavourable situations.

 Monitoring: standard costs; variances; flexible tools; scorecard for measuring

performance, financial v/s relevant elements; balance between financial & performance

 Any other factors which you could mention regarding the company?

Corporate governance
 Introduction: set of processes, customs, laws; principal/agent v/s er/ee relationship
 Parties involved : Shareholders(owners), Board of Directors, Managers
 Corporate governance principles based on honesty, trust, integrity
 Common CG principles: rights & equitable treatment of shareholders; interests of other
stakeholders; role & responsibilities of the Board; integrity & ethical behaviour;
disclosure & transparency

National Code of Corporate Governance for Mauritius, revised November 2016

Generic Principles, page 17
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Principle 1: Governance Structure
All organisations should be headed by an effective Board. Responsibilities and accountabilities
within the organization should be clearly identified.
A Board Charter : A charter provides the terms of reference for the Board and describes how the
Board operates.
A Code of Ethics: The Code should lay out clear corporate values and standards of behaviour in
the organisation’s dealings.
Job Descriptions or Position Statements : There should be a written job description or position
statement for each senior governance position within an organisation (e.g., Chairperson, Chief
Executive, Chairperson for each Board Committee and Company Secretary) ,sub committees?
Organisational Chart and Statement of Accountabilities: There should be an organisational chart
(at a level of detail commensurate with the sophistication and scale of the organisation) and a
written description of the major accountabilities within the organisation.
Principle 2: The Structure of the Board and its Committees
Board Structure: both executive and non-executive directors
Board Size : the Board should be of sufficient size to meet the requirements of the business
Board Composition
Company Secretary
Board Diversity
Board Committees
Principle 3: Director Appointment Procedures
Appointment processes: election, reelection, nominations
Induction and Orientation
Professional Development
Succession Planning
Principle 4: Director Duties, Remuneration and Performance
Legal Duties: exercise degree of care, skill and diligence
Code of Ethics: consider developing one
Conflicts of Interest: Conflicts of interest inherent in related party transactions should be
addressed/avoided
Information, Information Technology and Information Security Governance
Board Information: ensuring that the directors receive accurate, timely and clear
information.
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Board Evaluation and Development
Remuneration : adequate remuneration is necessary for attracting, retaining and motivating high-
quality directors and senior executives.
Principle 5: Risk Governance and Internal Control
The Board should be responsible for risk governance and should ensure that the organization
develops and executes a comprehensive and robust system of risk management. The Board
should ensure the maintenance of a sound internal control system.
Principle 6: Reporting with Integrity
The Board should present a fair, balanced and understandable assessment of the organisation’s
financial, environmental, social and governance position, performance and outlook
in its annual report.
Brevity, Consistency, Exception, Simplicity, Relevance
Environmental Issues: managing their activities in a way that minimises any negative impact on
the environment.
Health and Safety Issues: develop and implement health and safety policies and practices at least
to comply with existing legislative and regulatory frameworks.
Social Issues: organisations in Mauritius play an important role in sustaining social harmony,
especially through their employment policies and their ownership structure
Corporate Social Responsibility
Charitable and Political Contributions
Principle 7: Audit
Internal Audit
External Audit and Audit Committee

Principle 8: Relations with Shareholders and Other Key Stakeholders

The Board should be responsible for ensuring that an appropriate dialogue takes place among
the organisation, its shareholders and other key stakeholders. The Board should respect the
interests of its shareholders and other key stakeholders within the context of its fundamental
purpose.
Responsiveness to Shareholder and Stakeholder Concerns
Shareholder Agreements
Shareholder Information
General Meetings

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Role of Business Ethics ( from internet sources)
Transparency: accurately representing facts, telling a truth in its entirety and communicating
clearly and openly about everything a company does and says.
Integrity: do what they believe is morally right based on equality and fairness can demonstrate
strength and commendable character.
Trustworthiness: keep promises and fulfill commitments to their employees, business partners
and customers
Loyalty: relationships a business has including those with staff, partners, investors and
consumers.
Equality /Fairness: use honorable methods to gain an advantage over the competition
Compassion: means accomplishing business goals with the intention of producing the most good
while causing the least amount of damage.
Respect: treat all humans with respect regardless of religion, sex, race, nationality or other
signifier are often reviewed positively in the public eye.
Lawfulness: abiding by legal regulations and obligations regarding their business activities like
taxes, worker safety and employment and labour laws.
Providing excellence: working to deliver the greatest quality of service or products to their
clients and customers.
Responsibility: lead with the values and mission of the organization in order to make logical
decisions that benefit everyone
Upholding reputation: engaging in conduct that uplifts the company.
Accountability: accept responsibility for all decisions made as a company and admit its mistakes
to all of those who may be affected by a misstep including shareholders, employees and the
public
Notes from Manual for self-reading
Questions from the floor