Management and Business Measurement Process Essay

Darien Walker’s approach to audit Mercedes Benz U. S. International (MBUSI) exemplifies the business enterprise measurement method method. Walker begins with a strategic evaluation of her client by simply conducting exploration on the VEHICLE market and MBUSI’s business and strategic objectives.

Several important exterior forces in the market include monetary factors including international petrol prices, work rate, interest rates, and inflation. Though confronted with taxation and tariff difficulties, MBUSI likes a strong romantic relationship with the condition of The state of alabama government. The merger with Chrysler Firm, on the other hand, positions several hazards. Unionization and additional disclosures under GAAP reporting may significantly impact on the company’s procedures. The elevation of competition in the SPORT UTILITY VEHICLE (SUV) segment could also lead to reduced market shares of the M-Class, however , high product top quality and customer satisfaction would guarantee the M-Class a niche in the market.

Set up and supply chain management will be MBUSI’s primary business techniques, and many controls have been placed during these techniques to ensure functional effectiveness and efficiency. MBUSI excels in the assembly line management through effort with personnel and suppliers, as well as creating and monitoring of key controls. The corporation also loves a superb supply chain, mainly due to its close, integrated relationships with its suppliers. In addition , source management operations, such as procurement and info management, are usually crucial to the achievements of the company. By Walker’s risk-based strategic systems approach to review MBUSI, you will discover two important takeaways.

First, Walker’s complete strategic research on MBUSI demonstrates that auditors must conduct intensive research about the client’s business plus the environment of which it are operating in. The BMP audit way would not normally work if auditors do not become familiarizedwith the business organization. An example to demonstrate this point may be the fall of Enron. As a result of gas industry’s complex business nature, Enron’s financial transactions tend to always be vague and confusing. Simply by further obscuring its monetary statements, Enron fools it is auditors through easy manipulations.

In hindsight, however , in case the external auditors understood Enron’s business framework and sector, they would have detected the misstatements monetary results. Finally, from MBUSI’s perspective, it is notable the company’s integrative relationships with the employees, suppliers, and the point out of The state of alabama government are the keys to success. MBUSI’s active involvement with these types of key players allows the organization to leverage these associations through their business procedures to deliver “Mercedes-Benz quality” to its clients.

Another firm that effectively leveraged the relationships with internal and external functions is Starbucks Inc.