The Applied Management Review August 2017 Volume 1 No. 1
Determinants of Corporate Capital Structure in New Zealand
Masahiro Kanatani and Reza Yaghoubi
Substitution for Yves Saint Laurent Beauty
Onalia Hermiz and Dhammika Silva
Applying the Balanced Scorecard to Improve Student Satisfaction, Market Share and Profitability
Sunita Kerai and Ahmed Saleh
Accounts Payable: Improving a System for Better Efficiency
Tony Franz Einkamerer and Jannat Maqbool
Internal Controls in Small and Medium Size Enterprises: A Study of Matamata
Simon Germann and Sharon Manasseh
Work Life Balance in the Accounting Industry
Katie Jones and Beverly Taylor
Investigation of the Supply Chain Management
Jingliang Feng and Denise
Harnett
Determinants of Corporate Capital Structure in New Zealand
Masahiro Kanatani
Waikato Institute of Technology
Reza Yaghoubi
Waikato Institute of Technology
Abstract
Choosing the way to fund new projects would be one of the toughest tasks for top
management in the real business world. Among the long history of study in financial management, several theories have developed to explain corporate
capital structure such as net income approach, trade-off, agency costs and pecking order.
This paper identifies determinants of capital structure based on a sample of 155r 5-year financial statements of NZX 50 companies utilising statistical analysis: descriptive statistics, correlation and multiple regression. This study finds
that there is a positive relationship between leverage and company size measured as total assets, total revenue and EBIT. Four independent variables chosen for the regression analysis are: a ratio of income tax expense divided by total assets;
return on net assets (profit after tax divided by non-current assets plus working capital); aggregate of depreciation, amortisation, lease, occupancy and impairment expenses; and dividend pay-out ratio. Findings are consistent with the tax
shield effect arising from the use of debt, which is given by the trade-off theory while being inconsistent with the notion of non-debt tax shield. Moreover, findings are also consistent with pecking order theory. However, the four independent
variables only explain the leverage ratio at 46.76 percent.
Substitution for Yves Saint Laurent Beauty
Onalia Hermiz
Waikato Institute of Technology
Dhammika Silva
Waikato Institute of Technology
Abstract
After the downfall in sales for the Yves Saint Laurent counter, managers of Life Pharmacy
at The Base, Hamilton, made the decision to moderately discount products in order to prepare for discontinuation of the brand. In order to find a viable substitution for the brand, thorough research has been conducted of all the different
brands currently available and identified two potential substitution brands. After gathering all relevant information about the overview of Shiseido and Cailyn Cosmetics it has become possible to write up a marketing mix analysis for both
brands in order to compare one brand to the other and choose the most feasible one. An overview of the beauty industry has also been included within the research in order to gain an understanding of the current and future of the beauty market
so that the decision can be based on the overall
position of the beauty industry. From the results and discussion, it has been possible to conclude and make recommendations to Life Pharmacy.
Applying the Balanced Scorecard to Improve Student Satisfaction, Market Share and Profitability
Sunita Kerai
Waikato Institute of Technology
Ahmed Saleh
Waikato Institute of Technology
Abstract
Student satisfaction is considered a major focus for educational institutions around the
globe. As students are the major stakeholder in this sector their expectations from the institution should be met. This focuses on the balanced scorecard framework developed by Kaplan and Norton. This framework, which is widely used by profit
and non-profit organisation is here used to assess student satisfaction, which in turn improves performance and leads to profitability. The focus of this paper is on the implementation of the framework into an educational system. In this
study, students were interviewed
to collect their views on their level of satisfaction, and a staff member was interviewed to gain understanding of their knowledge of the balanced scorecard framework, and their opinion on student satisfaction.
The conclusions derived were that senior level staff lack knowledge of the balanced scorecard and require appropriate training on its use and
implementation. A slightly modified balanced scorecard framework is recommended for the centre
to practice.
Accounts Payable: Improving a System for Better Efficiency
Tony Franz Einkamerer
Waikato Institute of Technology
Jannat Maqbool
Waikato Institute of Technology
Abstract
The function of accounts payable has seen a great increase of information that
the function has to process. This is true even for smaller organisations and research has proven that there is a great cost involved in processing an invoice. This increased cost has lead organisation to look at the accounts payable process
and make changes to the processes, systems and technology to help create efficiencies in the accounts payable department to reduce the cost involved with processing invoices as well as become more compliant to recent changes in reporting
standards. Changes to improve
systems are required in almost any organisation; effective management of this change will ensure the successfulness and longevity that particular change can offer.
Internal Controls in Small and Medium Size
Enterprises: A Study of Matamata
Simon Germann
Waikato Institute of Technology
Shannon Manasseh
Waikato Institute of Technology
Abstract
This paper reports key findings from a study
of the internal control systems of 27 small to medium enterprises (SMEs) in Matamata, New Zealand. There are several well-known problems experienced by SMEs. Inferior internal control procedures due to their small number of employees ranks
high as a major concern. Difficulty in obtaining adequate segregation of duties, and a tendency for owners to be aware only of external threats is problematic. A review of relevant literature reveals that this is a global problem. Several
studies also sought to link internal control to organisational culture
and to the perceptions of internal control within the SME ownership and their employees. This research seeks to establish if there is a relationship between an entities
size/age and their level of implemented internal controls. To achieve this, a 22-question survey, asking SME owners about their internal controls was distributed. Analysis of the survey results revealed that the average SME has about 50%
of the most basic internal controls implemented. While the smaller, younger firms were more likely to score lower than average. The results aligned with the literature, but also added to the current body of knowledge. The research discovers
that among the surveyed SMEs there was a strong positive relationship between the size of an entity and their internal control. This was not the case with the relationship to age.
Therefore, the report recommends that SME owners:
i) Create internal control policy surrounding the regular changing of passwords.
ii) Require more than one employee for authorisation.
iii) Develop and implement a disaster recovery plan.
iv) Employ the services of a qualified business
mentor.
v) Consider engaging with a qualified auditor.
Work Life Balance in the Accounting Industry
Katie Jones
Waikato Institute of Technology
Beverly Taylor
Waikato Institute of Technology
Abstract
Research has revealed the boundaries between work and private lives
are becoming increasingly blurred. This is largely due to the continuing evolution of technology, which has been confirmed by this research. The purpose of this research is to investigate what a healthy work life balance is and why conflicts
can arise, along with strategies that
both the employer and employee can implement to assist in creating a healthy work life balance. It also investigates changes over time, such as technology, that have had effects on work life balance. Research
was conducted with senior employees at a Waikato based accounting practice to explore their work life balance satisfaction, strategies used to overcome issues which specifically include technology, and whether they believe changes over time
have affected their work life balance.
The findings are consistent with prior research and reveal that although the majority of participants are satisfied with their work life balance, concerns exist. A variety of strategies are used to
prevent work life balance issues, with the most prevalent being making time for exercising and hobbies and organising work in such a way that extra hours were not needed to be worked. Technology had both positive and negative effects and
it was found that mobile phones caused the most stress. Recommendations include assisting those who are not satisfied with their work life balance by distributing the workload evenly, educating all staff on the effects of poor work life
balance and strategies for assistance, along with monitoring employees to ensure issues are dealt with proactively before any escalation.
An Investigation of Supply Chain Management
Jingliang Feng
Waikato Institute of Technology
Denise Harnett
Waikato Institute of Technology
Abstract
Supply chain exists in any business. An efficient supply chain management can
help the organization to gain a competitive advantage by improving efficiency, reducing cost, minimizing risk and maximizing customer’s satisfactory. Supplier base is vital to an overseas studying consultant industry, only when it
owns abundant provider resources and stay in a healthy relationship with its suppliers. It can provide more options as it can to its customers and gain the competitive advantage in the market. This report reviewed relevant theory on supply
chain and supply chain management, focusing on supplier
selection, supplier relationship management, and supplier evaluation. It emphasizes on vendor selection criteria, contracting strategy and supplier relationship management. Supplier
evaluation is also taken into consideration on the importance and the metrics of performance measurement. A case study was conducted to investigate and analysis the
supply chain management in an overseas studying consultancy, AL Consultant
Ltd. The research was completed using primary and secondary methods of information collection of AL’s background and supply chain management, as well the relevant theory in this area. With the data and analysis gathered, several recommendations
are given to enhance the supply chain management in AL Consultant Ltd.
