Internal control is designed and implemented by an entity's management to provide assurance regarding the achievement of objectives related to the effectiveness and efficiency of operations, the reliability and timeliness of financial reporting, the prevention and detection of fraud and error, and compliance with applicable laws and regulations. Additionally, internal control plays a vital role in how management meets its stewardship or agency responsibilities. An entity's internal control extends beyond matters that relate directly to the functions of the accounting system. It consists of the following five components: the control environment, the entity's risk assessment process, the information system, and related business processes. 2015). It is crucial for Legoland to understand what would attract guests. Oftentimes, having detailed consumer information is critical in meeting their demands. Hence, detailed planning is essential. In this case, Legoland could employ effective management control activities such as capital investment budgeting. By analyzing the costs involved in the necessary investments in innovative rides and comparing the alternatives through a cost-versus-benefit analysis, management could choose the best investment that would likely result in repeated visits by the patrons as the rides are unique. Likewise, by analyzing customers' demand, Legoland can consider shutting down rides and attractions that are the least popular with their consumers. Furthermore, to combat seasonal demand, Legoland's management should employ marketing strategies to actively manipulate customer demand. For instance, they could charge different prices during peak and non-peak periods to entice more visitors during the latter period. They could also offer special rates for early bookings, group bookings, and annual passes. Additionally, management can use accounting information software to predict and plan the rides, facilities, capacities, and future demand. This ensures that no matter the season or the number of guests in the park, visitors' experiences would always be favorable (Romney & Steinbart, 2012; Raluca & Gina, 2015).
Internal controls is defined as a process, effected by an entity’s board of directors, management, and other personnel, designed to provide reasonable assurance
Since Busch Gardens had opened its doors, it had done a great job at getting people’s attention and meeting their needs with its unique wild animal themes and its appreciation for nature. With all of the different events the park hosts during the year, marketing activities are directed towards different target markets which includes mothers, families, couples, thrill-seekers, etc…Although Busch Gardens have had great success over the years, the company fails to keep up with the other major theme parks who are more advanced with their technological devices such as Disney’s MagicBand. With the new ride, Falcon’s Fury, opening on May 1st, 2014, it will be a great opportunity for Busch Gardens to attract even more guests to the park.
In 2012, the new CEO of Cedar Fair Entertainment announced a new Long Term Growth Strategic plan for the company. The plan is known as the FUNforward and financial goals for the Company. The CEO is headed in this direction because of the significant barriers to entry and a loyal high-repeated customer base as well as the significant momentum that they have created for the Company over the past two record-setting years (Rotting Flesh Radio RSS, 2012). For example, Kings Dominion is one of the largest theme parks on the East Coast and the loyalty of the younger generation is outstanding. The park is located in an area that is very convenient off of interstate 95. Most parents use the theme park as a baby sitter. They drop their kids off in the morning and pick them up in the afternoon after work. The park is so big and it caters to the younger generation and it adds a new ride every couple of years to make the park even more attractive to its customers.
Total sales revenue of the different products the corporation offers are recorded jointly for one single income statement. When considering the impact LEGO Friends has had on the overall growth of the corporation, one must consider the actual sizeable contribution it could have potentially made in respect to the sheer number of available theme lines the company offers. However, despite the line only being a fraction of the available products, in 2012 it was the fourth top-selling line overall (behind City, Star Wars, and Ninjago) and the second most successful new release of the year out of a total of 15, which together contribute to more than 60% of the company’s profit.15 Therefore, by analysing general revenue and income one could get a
Disney Consumer Products (DCP) is one of the business segments of The Walt Disney Company. DCP was designed to bring new, exciting and intriguing product experiences across many categories –everything from toys and apparel to books and fine art. DCP as a whole is the worlds largest licensor and thinks of its self as liable for bringing the magic of all things Disney into the consumers homes with products they can enjoy anytime of the year. Revenue for Disney Consumer Products for the year of 2014 was at 3.93 million USD.
... the cost would cause us to have an overwhelming amount of debt. The advertising portion of the business could fail resulting Fun Land to have little exposure in Chicago city and beyond. Fun Land will have a lower chance of having a large flow of customers in the beginning of the business. Fun Land’s roller coaster rides could have a structure defective causing safety issues. As result Fun Land will need to pour more capital in improving the structure and safety inspections. A customer could have an injury related to Fun Land which would worsen Fun Land’s reputation. A sudden worsen of the economy can inhibit consumers in using their money for personal wants, travel, or high cost service. Weather is another factor that could affect the roller coaster rides’ safety in Fun Land. Fun Land could lose profit by replacing materials, on the rides, worn down by the weather.
The brand image that is created by the park goes with what they portray as they have set up sections that are comprising of the featured movie or show. The cleanliness aspect and the environment creates and delivers a symbolic difference to the whole theme park (Richard, 1993). The management have made their efforts in maintaining the same feeling, as they employees and the staff is dressed and the procedure so the park is carried out in pure joyous manner. They have the shows that have the characters from the movie, especially the stage shows and they are dressed up in the form of the characters giving a jubilant feel to the travellers and the tourists. As there is advancement seen in all market, people and tourists are getting more informed about the entertainment industry they prefer more to their entertainment package (Golob, 2003). With this advancement, people tend to be wise and more informed, raising the bar of standard and requirement that are offered by the entertainment theme park. As the management staff knows that now people are more vibrant and have gathered data about what they will be offered, they are no more interested in listening to the stories and the fairy tales that are described to them (Ashwell, 2015). They have a tendency to adapt to the environment and want to be the part of the whole story. As this requirement has grown in the market, management has successfully made the changes to the strategies they have been implementing and they have been working on. These favourable changes have resulted in displaying the enjoyable changes to the theme park and helps them to changing market requirement and demand (Vogt & Andereck,
It is being predicted that Disneyland will see a dip due Harry Potter. However, Disneyland too is in the process of adding more attractions. There is a 14 acre expansion plan which would resemble Star Wars. The spokesperson of Disneyland, Suzi Brown has said that, Disney would continue to raise the bars of theme parks and strive to provide an unique experience to tourists. This arms race, however, would do a lot of good for the industry and people as
One of the key factors of the successful diversification is the very strong branding of the name Disney. That the name was famous after the success in the early years made it among other things possible to go into the theme park industry. Evaluated isolated, the theme parks was a success. But when also accounting for the synergies created, the decision to go into this industry was a huge success. It has created a spiral of synergies, where the characters in the movies get more popular due to the parks, as well as the fact that when people are visiting the parks they get stimulated to buy the merchandise. This is just one example of the synergies that exist in Disney. When Michael Eisner took over control in Disney, he kept focusing on same corporate values as earlier, which are quality, creativity, entrepreneurialism and teamwork. These values have been preserved despite of the size of Disney, and are an important factor in sustaining and building the Disney brand.
In this case there has been a recognition of a trend, which is the trend of people going to theme parks during the weekends for entertainment of them as well as their children. Also here is an existing need for entertainment of this kind. Therefore, an opportunity exists in the European market that Euro Disney could have taken advantage of. However, their failure to pick up signals from the macro environment and microenvironment as well as to position their product accordingly, had negative effects on their operations. A further analysis of their macro and micro environment highlights their malfunction.
LEGO company had some crisis during 1992 until 2004 which led to the downfall of the company. Since 1992, LEGO’s profits had turned down and unfortunately in 1998, it posted its first ever loss which was at £23 million. Moreover, 1000 employees of the company were laid off in the exact same year of their loss. The first LEGO products featuring licensed characters which were not designed in-house were LEGO Star Wars and Winnie The Pooh. They were created in 1999. While in 2000, LEGO Harry Potter characters to figures from other Steven Spielberg movies were created. The head of the LEGO Concept Lab, Soren Holm said, “Even though toy weapons had always been hotly debated, but since the company released the LEGO Star Wars, LEGO has been
This is a publicly traded company in the US that has been ding quite well in the recent years. The company’s 10k filing for the year 2014. From this statement, the risks facing the company will be identified classified and suggestions made on how best to mitigate them in the subsequent areas. There are various areas that the risks can arise based on the company’s 10k filling (Mertz, 1999).
With all of the designing that was happening in the company, it helped to shrink its profits. Lego City was a popular toy for children but the redesigning shrank the sales and attention the product was once getting. A worker of Lego said it well when he said, “Management was to blame, the same people who were doing crappy products then are making world-class products today” (Greene). Essentially the managers and higher up executives didn’t communication what direction the company should be going. They didn’t have a strategy to follow and tell their employees. With no clear strategy and communication in place, things were a free for all. This lead to the declining profits and stability of the company. Lego assumed that if the designers were able to create whatever they saw fit, that somehow it would lead to a breakthrough in the toy maker’s product line. However, this ideology backfired with high production costs and low profit margins.
Jack McClintock, president and part owner of the company, is considering a proposal to adopt a monthly production level for the coming year. Main Issues: What is the ' The two principal issues that have to be analyzed are: . 1.Should Toy World change from seasonal production to monthly production? The first problem that has to be analyzed is if they have to adopt a policy of level monthly production, or if they have to continue with seasonal production. It has to be studied what are the opportunities and the risks for the company if they adopt the change.
It is not detected, prevented or modified on a timely basis by client’s internal control system. It will occur in account balance, disclosure or class of transactions. This risk is a function of the effectiveness of the design and operation of an entity’s internal control. The control risk may not be zero, it may be minimal. Some control risk may always exist, it is due to the inherent limitations of internal control.