Week 2 CTA: Introduction and Business Selection

Business Selection Assignment Overview

Week 2 CTA: Introduction and Business Selection

Objective: The primary goal of Week 2 is to identify and select a local small business that presents interesting managerial accounting challenges and opportunities. This first step is crucial as it sets the stage for all subsequent analyses throughout the semester.

Detailed Structure and Purpose:

Purpose of the Assignment:

• Engage with the Community: Support local businesses by providing insights that could enhance their financial operations.
• Apply Theory to Practice: Apply managerial accounting concepts to real-world scenarios, bridging the gap between theory and practice.
• Develop Professional Skills: Enhance communication, analytical, and problem-solving skills through real business interactions.

Steps and Recommendations:

Step 1: Research Local Small Businesses

Objective: Identify potential small businesses in your community that could benefit from managerial accounting consultation.

Action Plan:

• Use Local Resources: Explore local business directories, community boards, or social media to find potential businesses. Prioritize businesses that are accessible and open to collaboration.
• Selection Criteria: Focus on businesses that have unique products or services but face operational or financial challenges, such as local bakeries, independent retail stores, or service providers like salons and auto repair shops.

Recommendation: Choose a business that aligns with your interests and offers clear opportunities to apply managerial accounting principles, such as cost management or budgeting improvements.

Step 2: Contact the Business

Objective: Establish communication with the business owner or manager to introduce yourself and explain the project.

Action Plan:

• Craft a Professional Communication: Reach out via email or phone to explain the project’s purpose and benefits. Highlight how the project can provide valuable insights to the business while offering practical experience for you.

Direct Email Example:

Subject: Opportunity for Managerial Accounting Consultation

Dear [Business Owner’s Name],

I hope this message finds you well. My name is [Your Name], and I am currently pursuing an MBA at Texas A&M University-Central Texas. As part of my coursework, I am undertaking a project that involves providing managerial accounting consultations to local small businesses.

I am particularly interested in [Business Name] because of your unique offerings and the significant role you play in our community. This project involves analyzing your business’s financial health and offering recommendations on cost management, pricing strategies, and budgeting. I believe this collaboration could be mutually beneficial, providing you with actionable insights while allowing me to apply my academic knowledge in a real-world setting.

If you are open to participating, I would love to schedule a time to discuss this project further and explore how we might work together. Please let me know a convenient time for you, and we can arrange a meeting or a phone call.

Thank you for considering this opportunity. I look forward to the possibility of working with [Business Name].

Best regards,

[Your Full Name]MBA CandidateTexas A&M University-Central Texas[Your Email Address][Your Phone Number]

Recommendation: Personalize your communication to demonstrate genuine interest and professionalism, highlighting mutual benefits.

Step 3: Gather Basic Information

Objective: Collect essential details about the business to understand its operations and financial structure.

Action Plan:

• Information to Collect: Request details about the business’s size, industry, primary products or services, and specific challenges they are facing.
• Example Information: For a bakery:Number of Employees: 10Industry: Food and BeveragePrimary Products: Pastries, cakes, and breadChallenges: High ingredient costs and pricing competition

Recommendation: Collect enough information to identify areas where managerial accounting principles can be applied to improve the business’s financial performance.

Step 4: Document the Selection Process

Objective: Clearly outline why and how you selected the business.

Action Plan:

• Write a Detailed Report: Include sections that describe the selection process, justification for choice, and a business overview.Selection Process Description: Detail the steps taken to identify and contact the business, including criteria used for selection.Example: “I began by searching for local small businesses using the local chamber of commerce directory. I shortlisted businesses known for their unique products but facing operational challenges. I chose the local bakery because it has a strong customer base but struggles with cost management.”Justification for Choice: Explain why you chose this business, highlighting specific challenges and how managerial accounting could help.Example: “I chose the bakery because, despite its popularity, it struggles with high ingredient costs and pricing strategies. By applying managerial accounting principles, we can help them manage costs and improve profitability.”Business Overview: Provide details about the business’s size, industry, primary products or services, and its role in the community.Example: “The bakery is a beloved local spot, known for its innovative pastry designs and community events. It plays a crucial role in the local economy by sourcing ingredients from nearby farms and employing local residents.”

Recommendation: Use clear and precise language to convey your reasoning and ensure the report is structured logically.