Tittle: Ron Brown Case Study
Source: Journal of Management
Author: Sendy Thahir
Major case issue
The major case issue for Ron brown Accounting Pty Ltd comes from the internal and external factor. The problem experienced would really influenced the position of the company at the future, where as the customers would really expect the satisfaction, because “Negative perceptions of service may ultimately damage the reputation and profitability of the business”.(Hensley, Rhonda L & Sulek, J 2007). To prevent the bad perceptions of the company, the company must first identify the problem and then seek an alternative for the future improvements. The problems are:
1. Lack of employees
The company employs four full time and two casual staff member, four at the main offices and two at the branch offices. With the total number of the employees, the company still couldn’t handle the customers that expect the calculation to be accomplished, because the employees taking a long time to finish their task, in a hurry situation, it might also lead to the higher failure rate. The situation might result the customers switch to another accounting firm services, which provide better services.
2. Lack of computerized-skill employees
The employees are professionalized in the accounting part, but they are lack of the variable skill such as the software and technician skills. When either the computer or the software’s got a flaw, the accountant’s activity can be stopped or slow down. It would really result on the lost of time effectiveness and money.
3. Many clients have not been able to pay their fees
The clients have not been able to pay the service fee, that result the turnovers of the cash are not according to the company expectation. The solution for the situation will be explained further.
4. Changes to taxation legislation
The changes in taxation legislation influence the other company such as the business and wage earners to make the calculation by themselves. Their own activities result the decrease of the demand of services to the accounting company.
5. The long waiting time
“Service customers frequently view waiting as a waste of their time”.(Hensley, Rhonda L & Sulek, J 2007). Every customer including us would not like to wait for a long time to obtain what we want; it significantly affected the customer’s satisfaction. The perceptions of the service quality will be lower down and the customers will seek another alternative for higher quality service to fulfil their wants.
The case issues in the Ron Brown Accounting Pty Ltd case could have been phrased in order of priority as:
1. How can the performance and service quality of the service division are improved :
The company performs badly in their operation management, where as their work are always not be finished as expected time, the customers feel neglected because of their appointment with Ron Brown are not be appreciated, more over, there’s the miscalculation issue that result the lost of the customer.
2. What can be done in accomplishing the accounting task on time during GST period?
During the GST period, October, January, May and June are the busiest time for the accounting firm, because they have to face fluctuating demand. At the end of the year they have to calculate their business activity statement and during the GST period they have to calculate the employees and business annual tax.
3. What can be done in offering the best value during the crisis period for the customer?
The change in tax regulation have resulted the accounting company are undependable, because they have to add amount of expense for their company in calculating the business activity statement.
4. How to create an effectiveness and efficiency at the company?
As we know that the lack of employees will result bad on the company performance, the lack of division that focussed on the task will influence the performance of the others staff to work on the part that actually they don’t have to be responsible with.