As the negative impact of economic crisis, many countries experienced a hardship during these years. On October 1, 2013, the United States federal government entered a government shutdown, forcing furloughs of 800,000 workers and suspension of services not exempted by the Anti-deficiency Act.

Actually, this is not the first time that the U.S. government had shutdown. Moreover, the reason for it is essentially similar—- the government budget balance, especially its financial deficit. As a management of a country, it should pay large attention to its management accounting. Specifically, management accounting is concerned with the provisions and use of accounting information to managers within organizations, to provide them with the basis to make informed business decisions that will allow them to be better equipped in their management and control functions. It focuses on the future. Also, it predicts the future and helps with making decisions and improving the performance of the organization based on logical statistics. Thus, if U.S. government had done well in management accounting, they would forecast what would happen in the future and avoid the government shutdown which leads to a huge loss of taxpayers and the negative impact on the whole society.

To conclude, management accounting is of crucial importance for organization. A organization, especially the one as big as U.S. government, cannot run well without it.

Reference

1.  United States federal government shutdown of 2013. From Wikipedia, the free encyclopedia.

http://en.wikipedia.org/wiki/United_States_federal_government_shutdown_of_2013

1. Management accounting. From Wikipedia, the free encyclopedia.

http://en.wikipedia.org/wiki/Management_accounting

As the economic globalization, increasing companies pay more and more attention on their brand influence, which can bring in a lot of profit with slight effort in latter period. TCL, which is a Chinese multinational electronics company headquartered. It began manufacturing consumer electronics for the Chinese market during the 1980s which can remind Chinese of their childhood, adolescence and even adulthood by their advertisements.

According to National Bureau of Statistics of China Advertising Association and the Urban Social and Economic Survey Group report, in January 1998, TCL ace TV on national TV advertising investment reached nearly 6 million RMB, which is in the first place among similar products in terms of TV ad. Obviously, a huge advertising investment produced a huge brand benefit. It is estimated that in 2000 TCL’s brand value reached 10.6 billion RMB, becoming a large sum of intangible assets in the TCL.

Chinese consumers have always shop around, not to mention whether they are loyal to a brand. What makes TCL bosses pleased was that, TCL has been established a significant value proposition awareness in the minds of Chinese consumers: Although “TCL” itself does not has any special meaning, these three simple red letters can be recognized easily by consumers among dozens or even hundreds of similar products.

Because “TCL” lacks the meaning of the concept, TCL is also very easy to extend its market. TCL brand covers nearly everything from phones to TVs, mobile phones, computers, monitors, and even to education, routers, and dozens of large and small product range — the latter product’s advertising investment is almost zero, thus saving a lot of advertising costs.

To conclude, establishing a great and influential brand name exerts a far-reaching impact on a company. Therefore, management should take it into consideration to develop the business.

Reference

1． TCL Corporation. From Wikipedia, the free encyclopedia.

http://en.wikipedia.org/wiki/TCL_Corporation

As the potential market in China is growing, increasing companies are interested in Chinese market which includes 1.4 billion persons. For example, Wal-Mart, which is an American multinational retail corporation that runs chains of large discount department stores and warehouse stores, considers acquisitions in China to expand its market. However, Google is an exception. Google China was founded in 2005 and operated well until 2010. The very fact that Google ended some of its services in China on June 30, 2010, and the reason was the censorship in China.

The different attitudes of two companies largely depend on the property of them. Specifically, Wal-Mart is only a company that similar to a big super-market. What it ought to do is only guaranteeing its product’s quality. At most it is banned to sell sexual magazines which might be a negligible part of its profit.

However, the main service of Google is search engine which covers a lot of issues that against Chinese policy. Assuming that Google continues its strategy in China, it may gain a lot of profit but some people thought that this behavior acted against the slogan of Google, DON’T BE EVIL. So its reputation could be negatively influenced which exert a great loss. Also, Google violated its belief.

To conclude, although China is a potential big market, companies should think twice: will what company do violate Chinese policy? Will the faith of company be violated by Chinese policy? Maybe only company like Wal-Mart and Nike, which will not reveal much more information, is suitable for China.

Reference

1. Wal-Mart eyes acquisitions in China: WSJ. CHICAGO | Sat Oct 5, 2013 1:39pm EDT.

http://www.reuters.com/article/2013/10/05/us-walmart-china-deals-idUSBRE9940AD20131005

2. The definition of Wal-Mart. From Wikipedia, the free encyclopedia.

http://en.wikipedia.org/wiki/Walmart

3. Wal-Mart looks for China acquisitions. Oct. 6, 2013, 1:12 p.m. EDT. By Laurie Burkitt.

http://www.marketwatch.com/story/wal-mart-looks-for-china-acquisitions-2013-10-06

4. Google China. From Wikipedia, the free encyclopedia.

http://en.wikipedia.org/wiki/Google_China

As Apple’s IOS, Google’s Android and Nokia’s Win8 operating systems are in vogue, the competition among smartphone companies is increasing fierce. After the takeover of Motorola Mobility, which is part of Google now, BlackBerry announced on September 23rd that it had struck a preliminary $4.7 billion deal with a group of investors who want to take it private.

Obviously, the management accounting worked bad for the Blackberry, which became an important reason for its crumbling. Actually, the management of it was divided in opinion. QNX, as a new team which was taken over by Blackberry, was ordered to develop a new system independently, while the old team of Blackberry was developing the old system. In my opinion, this is a waste of resources, giving rise to a bad result of the Playbook which was widely considered to be a useless electronic product. The American Institute of Certified Public Accountants states that management accounting as practice extends to strategic, performance and risk management, which supports long-range plans, adjustment between each sector, decision making of the management. More importantly, it is supposed to compare the prediction with the reality of the product’s situation and revise the method and decision in time to promote economic benefits. Thus, management accounting should have warned Blackberry’s managers and revise the strategy, but they did not.

In conclusion, management accounting exerts a crucial impact on a company. A company should guarantee the effective operation of it and it should warn the company in time if something serious happens. Blackberry is a counter-example.

Reference

1. Time for Plan Z. Sep 23rd 2013, 23:27 by M.D. | OTTAWA AND M.G. | SAN FRANCISCO

http://www.economist.com/blogs/schumpeter/2013/09/blackberry

2. Inside the fall of BlackBerry: How the smartphone inventor failed to adapt. By SEAN SILCOFF, JACQUIE McNISH AND STEVE LADURANTAYE. The Globe and Mail. Published Friday, Sep. 27 2013, 7:03 AM EDT

http://www.theglobeandmail.com/report-on-business/the-inside-story-of-why-blackberry-is-failing/article14563602/?page=all

3. Management accounting. From Wikipedia, the free encyclopedia.

http://en.wikipedia.org/wiki/Management_accounting