Changes Within The Manufacturing And Service Environment Essay

2022 Words Nov 27th, 2014 9 Pages
During the 1980s businesses had bear witness to the dramatic changes within the manufacturing and service environment, caused by deregulation of privatised governmental industries. In retrospect, this caused companies to reassess their strategies coinciding with evolving competitive environment. As a result, companies were faced with the task of producing the same quality goods at a competitive global price. Consequently, globalisation meant that customers had the ability to shop around for competitive prices, meaning that companies had to base their whole business around customer satisfaction. In order for business to survive they needed to adapt, meaning they had to find new techniques to keep cost low, whilst at the same time remaining competitive. Therefore, companies had to start anticipating the customer needs, which meant an increasing amount of money was spent on marketing and innovation. This era caused great economic depression, because manufacturing and service industries were moving abroad to find either cheaper labour or raw materials. Johnson and Kaplan (1987) reported that the structure of management accounting had to change, compensating for the advancement in larger hierarchal organisations, within the manufacturing, transportation and distribution industries. Therefore, management accounting had to become relevant to businesses as companies needed to accurately record the cost activities, of their products or services. In order for their goods to become not…

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