CASE STUDY: Audit of Purchase and Payments Cycle 
Required: 
Explain the Purchase and Payments cycle and discuss the typical audit procedures employed in this area of audit

CASE STUDY: Audit of Purchase and Payments Cycle 
Required: 
Explain the Purchase and Payments cycle and discuss the typical audit procedures employed in this area of audit

Case Study of Delta Air Lines, Inc. 
External Analysis of of Delta Air Lines, Inc. (SWOT Analysis, Porters Five Forces Analysis) 
Guidelines for the Final Individual Case Assignment 

• Case is Delta Air Lines, Inc.
• Maximum of 10 pages total–NO COVER PAGE, NO WORKS CITED PAGE
  • Maximum of 5 pages of written text, double-spaced, 12 pt font, 1-inch margins. This part of the exam is your presentation of your analysis based on the data you choose to use.
  • Maximum of 5 pages of appendices. This part of the exam is a presentation of data you choose to use. The data should support your analysis.
• Number your pages.
• Your final exam should use the following headers in the order listed. If you do not use the headers as listed, you receive an automatic 10 percent reduction. You may choose to use subheadings under the main headings.
  • External Analysis–based on information gleaned from the tools and data you choose to use, what does your external analysis reveal relative to the organization’s situation?
    • Consider various tools available to you such as the general environment, Porter’s Five Forces, driving forces, KSFs, comparison to competitors, overall industry attractiveness assessment, etc.
  • Internal Analysis–based on the information gleaned from the tools and data you choose to use, what does your internal analysis reveal relative to the organization’s situation?
    • Consider performance in terms of financial analysis (including ratios), current strategy, core competencies, value chain
  • Identification of Issue–Only select the most important issue (one issue). State the issue in two or fewer sentences. Provide support as to why it is an important issue that needs attention.
    • Consider various means of support for your stated issue, including, but not limited to, a SWOT analysis
  • Alternatives and Recommendation–Provide a minimum of two alternatives to address your selected issue. Recommend/select one of your alternatives and indicate why your recommended alternative is the best way to address the issue. Note: Listing the pros and cons may help you determine why your recommendation is the best alternative to addressing the stated issue.

MGT 542 Individual In-Depth Case Study 
Undergraduate Requirement 
50 Points per Weekly Submission 
 
 

• Read the two identified Dell articles and answer all the questions listed below. You can find the articles in the content tab in Blackboard titled “Course Reserves”.
• Each question should be answered with a minimum of one paragraph. A paragraph is a minimum of 3 complete sentences.
• A minimum of 4 pages per submission of written content is required. Some sections will require more pages to fulfill the requirements of the rubric and the in-depth case study instructions listed here.
• APA format is required.
• A minimum of 2 additional sources per submission are required to be cited.
• A bibliography with all citations, including the given articles, is required.
• There will be four in-depth case study submissions. Please reference the course schedule in the syllabus for the required dates of each submission.

 
 
 
 
SECTION 1 – 50 Points
Kapuscinski, R., Zhang, R.Q., Carbonneau, P., Moore, R., & Reeves, B. (2004). Inventory Decisions in Dell’s Supply Chain, Interfaces 34(3), 191-205.
 

1. Describe the Supply Chain Business Model used by Dell.
2. How does Dell Supply Chain benefit from low inventory levels?
3. What does Dell do to help their suppliers make optimum ordering decisions?
4. Describe Dell’s relationship with their suppliers.
5. Describe the revolver inventory model.
6. Describe the purpose of the golf analogy as it relates to inventory concepts. Include the analogy for the handicap (Dell’s and the Supplier’s).
7. What is the purpose of safety stock and how is it controlled?

SECTION 2 – 50 Points
Kapuscinski, R., Zhang, R.Q., Carbonneau, P., Moore, R., & Reeves, B. (2004).         Inventory Decisions in Dell’s Supply Chain, Interfaces 34(3), 191-205.
 

8. Describe the impact of the pull variance if a commodity is multi-sourced.
   1. Explain how an uneven pull from different suppliers of the same commodity effect the suppliers’ inventory levels, planning, and forecasting.
9. The balancing act: Discuss the cost of underage and overage as it relates to inventory

• The article references “Z scores” as the system inventory levels just before orders are placed to understand Dell’s method of making ordering decisions. Explain the logic of why there was significant volatility found of the “Z scores”.
• Forecast errors are an input in determining the optimal inventory levels. In Dell’s case, it was found the forecast errors at the commodity level were not independent from time period to time period. Why was this the case and what could be done differently to minimize forecast error?
• Explain the impact of the actual system inventory level fluctuations. What are the benefits and risks. Should high fluctuations be avoided?
• Discuss describing inventory levels in terms of “days of supply” vs. “units of inventory”. What would you recommend and why?
• Is 100% service level an ideal recommendation? Why or why not? How does this impact inventory levels?

 
 
Section 3 – 50 Points
Fugate, B.S., Mentzer, J.T. (2004). Dell’s Supply Chain DNA, Supply Chain Management Review; October 20-24.
 

1. What are the four qualities of Dell’s supply chain competency?
2. Describe the concept of each one individually.
3. Discuss the Business Process Improvement that shifted Dell from brand-specific assembly plants to generic factories. Why was this successful?

 
 
 
Section 4 – 50 Points
Final Questions

1. What advice would you have for Dell’s Supply Chain business model? What would you do differently?  Why?
2. What are the main challenges in front of Dell in reducing inventory while maintaining their Direct Sales model?
3. What inventory reduction improvement initiatives would you recommend?
4. What would you recommend that Dell try differently to further optimize their supply chain?

Practical Case Study 
The purpose of this case study is to create an opportunity to apply the ideas and concepts discussed in class and the readings in the analysis of a real organizational situation. The situation may be drawn from your own experience or from public information found in newspapers, books, reports, etc. Your choice of organization and situation will be an important one and will call for considerable judgment and discretion in deciding whether it is feasible to use it for the purposes of the case study.
You will examine a number of different ways of viewing organizations through the lens of
metaphor. Please choose what you feel to be the four most important metaphors for the
organization in its evolution towards a more viable, vital and innovative condition. In this part you should demonstrate your understanding of the metaphor: For this reason, even if aspects of the metaphor are missing, describe what these would look like in your focal organization.
Your paper will conclude with recommendations that actively enhance the organization’s capacities to learn and innovate, to become a wiser, more proactive, organization and, at the same time, a good citizen in society. Your recommendations should include not only the metaphors but also insights from the leadership practices within The Wise Company.
Be sure to maintain a professional stance in relation to matters which are sensitive and confidential and disguise the source of your project (unless it is drawn from public records) through use of appropriate pseudonyms. Confidentiality and the general conduct of the project are entirely your responsibility, so proceed with caution and an ethical sense.
You may choose any complex, real life organization, described in a detailed case study or written about in multiple sources in the press (for example in Fortune, the Economist, Sloane Management Review, Wall Street Journal, or through a case clearing house such as the Harvard Business School Press. It should not be a case that you have studied in another course and must be a unique submission with minimal similarity (less than 10%) to other cases or papers you have submitted. (You will find a Turnitin link under Assignments in Blackboard for your case study.)
Successful organizational analysis rests in an ability to examine any given organizational situation so that its fundamental characteristics are made clear. It is not simply a question of spotting problems and applying appropriate solutions. Rather, it hinges on questions such as:

• What is going on in the situation that you are analyzing? What metaphors best describe the situation? What wise leadership practices are present and what ones could best be enhanced in this organization?
• How can you make sense of the situation and arrive at an interpretation that allows you to both say something concrete about it and point towards the organization’s attainment of a more proactive and innovative condition?

(1) Summary: Introduction to Your Organization (Approximately 500 words) Here first
describe your organization as a machine and as a living system. A brief account of the
situation being investigated, providing enough information for the reader to understand the nature of the organization and its context. This section should include relevant background information as well as a clear statement of the focus of your case study. For example, it is appropriate to provide information on the age, size, and history of the organization, the product or services it provides, and the general nature of its environment. The purpose of this is to orient the reader, so that he or she can acquire an understanding of the industry or sector with which you are dealing, and the general trends it is facing. Following a general introduction, you should focus in on the specific situation of the organization that demands—or did demand– attention.
(2) An Analysis of the Organization using four key metaphors (leading toward
informed/wise business practices.) Using at least four “organizational” metaphors
from the course, apply/explore how these are relevant to the organization. (Approx., 1500 words)
The analysis section must include analysis based on four of the metaphors used in the course.
To summarize, here you are challenged to demonstrate your understanding and usage of the four metaphors to describe your focal organization, Present the organization in terms of the language of the metaphors, applying these also to bring out the critical issues and challenges of the situation. All of the above means that your choice of organization is critical! — You must be able to find sufficient actual information that allows you to discuss the metaphors and the application of the leadership practices.
3) Using the analysis via Morgan’s metaphors and the leadership practices from The
Wise Organization as a basis, make recommendations for your focal organization (1500
words). Give specific examples and make good use of the various insights and all of the
six main leadership practices found in The Wise Company. If you see that some essential practice or attitude is not present, imagine how it might be within your focal organization. This should result in your clear recommendations.
Your analysis should address the problems you see but also, through the application of
the leadership practices, areas where opportunities exist which may be enhanced. The
goal is to encourage a more proactive, innovative organization that holds to a standard
of continuous innovation with regard to quality products and services that contribute
to rather than take away from the common good and well being of society.
CRITERIA FOR EVALUATING THE CASE ANALYSES
The following criteria will be used to evaluate the case study

• The complexity of the case (cases that are very simple and offer little challenge will not

necessarily earn a high grade).

• Demonstrated in-depth understanding and use of the metaphors, the theories and concepts

related to these, as they are used to explain and analyze the case situation;

• The comprehensiveness and care with which the case situation being analyzed is described
• In the recommendations section, the comprehensive use of the leadership practices/philosophies/attitudes outlined in The Wise Company.
• The soundness of your analysis and general conclusions.
• The professionalism with which the report is presented.