Dakota Office Products Analysis

 Essay about Dakota Office Products Evaluation


Dhara Rami

ACCT 442

Dr . Szendi

Date: November 2, 2014

Towson School

Dakota Workplace Products Case Analysis

Dakota Office Goods Case Analysis


Dakota Office Products (DOP) is known as a reseller and supplier of office items. DOP can be described as regional organization. It has institutional and industrial businesses because clients. DOP has a great loyalty and customer self-confidence from its customer. In order to boost profitability, DOP started " Desk top” delivery due to its loyal buyers. In this service, DOP will use its own transfer vehicles to deliver to the consumers on his workplace tops. This kind of service charge little high quality for ease. According to DOP, this service should increase industry’s profitability. SWOT Analysis


Customer devotion

Technology version

Value added services such as table top transport

Excellent client services

Weak points

Price sensitive market

Costing system

Operational budget features extra invisible cost


Encourage customer to buy online

Applying effective expense system


Bad economic system

Manufacturers'' distribution channel

Porter's Five Makes

Supplier Electricity

Supplier don't have bargaining power

Differentiation based on value added services

Buyer Electricity

Easy to change supplier

Excessive bargaining electricity

Threat of new entrant

Easy to enter

Low capital necessity

Threat of Substitution

Partial threat flown by electric documents


Price hypersensitive


End of the season calculations done by general director of DOP shows increase in cost and then for the first time in company's background company record a loss in the balance sheet. About deeper research of the procedure, several problems are realized to get rising expense. For example , a comparison of two consumers A and B who have same purchases on season 2000 although Customer A placed a big order and utilized industry’s EDI (company's website) due to its order. However Customer M placed tiny quantity in each instructions. As a result, Client A positioned 12 instructions for bucks 200000 for the year, whilst Customer N placed 100 orders to get $ 200000 a year. Seeing that Customer M placed all its buy on the phone, the person hours intended for the manual entry was increased drastically, so the expense per purchase increase pertaining to Customer W. The accounting system put at DOP was not capable to capture the cost. That was your first difficulty for which price increase for DOP. The account receivables at DOP was diverse for Client A and Customer N. DOP received money by Customer A within 1 month, while Buyer B got 90 or more days. Since company was getting bank loan for its working capital and paying 10% interest on the bank loan, it enhance DOP's price for working together with Customer M. DOP has to change the credit policy and consumers' order size.

Activity Based Being System for Dakota Office Products Calculations Activity Cost Driver Rates

Activity One particular: Cartons Method in and out in the facility

Sum of Charge = Warehouse Personnel expense (90%) & Items Bought = 90% (2400000) + 35000000

sama dengan 2160000 & 35000000 = 37160000

Carton Processing sama dengan 80000

Cost Driver Price for Activity One = 37160000/80000 sama dengan $ 464. 5 every carton Activity Two: " Desk-top” delivery price

Sum of Expense = Storage place Personnel price (10%) + Delivery truck expense sama dengan 10% (2400000) + 200000

= 240000 + 200000 = 440000

Activity Drivers (Desk-top Delivery) = 2k

Cost driver rate for Activity two = 440000/2000 = bucks 220 per carton Activity Three: Order Handling

Amount of Expense sama dengan Warehouse charge + Shipment

= 2000000 + 450000 = 2450000

Orders = 16000 + 8000 = 24000

Cost Driver Price for Activity three = 2450000/24000 = $ 102. 08 per order Activity Four: Info Entry

Purchase Entry expense = 800000

Order Line= 150000

Cost driver price for Activity four = 800000/150000 = $ five. 3 every line

Consumer Profitability to get Customer A and Consumer B

Dakota Office Products Customer Earnings Report


Cost Rider Rates...

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