Accounting Question

Topic 7 DQ 2

Mar 21-25, 2024Review Case 10.32 in your textbook. Using the questions provided as a guide, discuss your suggested strategy(ies) for improving ROI and the steps that the company would have to implement to obtain the desired result(s).To participate in follow-up discussion, ask questions and post comments regarding classmates’ posts, or respond to follow-up questions posted by the instructor.Please include proper citations in your discussion post. Points will be deducted if proper citations are not used.Submitted on:Mar 21, 2024, 4:19 PMVIEW DQ RESPONSEDHDawn HallMar 22, 2024, 6:41 AM(edited)UnreadTo improve the return on investment (ROI) for Centex Yarns’ divisions, it’s essential to focus on enhancing profitability and efficiency. Here are suggested strategies for each division along with steps to implement them:Nylon Fibers Division:Strategy: Increase Profitability through Cost Reduction and Sales GrowthSteps to Implement: a. Conduct a thorough analysis of variable costs, such as raw materials and labor, to identify areas for cost reduction. b. Explore opportunities to streamline production processes and eliminate any inefficiencies that may be driving up costs. c. Invest in marketing and sales initiatives to expand the customer base and increase sales volume. d. Evaluate pricing strategies to ensure competitiveness in the market while maintaining profitability. e. Enhance customer satisfaction and loyalty through improved product quality and customer service.Polyester Fibers Division & Rayon Fibers Division:Strategy: Optimize Operations for Increased Efficiency and ProfitabilitySteps to Implement: a. Implement lean manufacturing principles to eliminate waste and improve production efficiency. b. Invest in technology and automation to streamline processes and reduce labor costs. c. Conduct regular performance reviews to identify and address underperforming products or processes. d. Foster a culture of innovation and continuous improvement to drive efficiency gains and cost savings. e. Strengthen relationships with suppliers to negotiate favorable terms and pricing agreements.Overall Company Strategy:Strategy: Portfolio Optimization and Strategic FocusSteps to Implement: a. Conduct a comprehensive portfolio analysis to identify non-core or underperforming businesses or product lines. b. Develop a divestiture strategy to sell off non-core assets or businesses that do not align with the company’s strategic objectives. c. Allocate resources and investments towards high-growth, high-margin segments that have the potential to drive significant ROI. d. Regularly monitor and evaluate performance metrics to ensure that strategic initiatives are delivering the desired results. e. Foster a culture of accountability and transparency to ensure alignment with strategic goals throughout the organization. By implementing these strategies and steps, Centex Yarns can improve the profitability and efficiency of its divisions, ultimately leading to a higher return on investment for the company as a whole. It’s crucial to continuously monitor performance and adjust strategies as needed to adapt to changing market conditions and emerging opportunities.Reference:Davis C. E., & Davis E. (2020). Managerial Accounting, Enhanced eText (4th ed.). John Wiley & Sons.REPLY