Business Case Study, Essay Example

Case Background

What constitutes organizational development? For business organizations that has withstood the different twists and turns of the tides of time, it is evidently essential that change is considered as an element that constitutes organization development. True, as the society advances, the was businesses are directed also takes differential conditions of adjustments. In relation to this, the case study on EuroRail handled by Jeremy Dent shows a distinctive indication on how modern businesses intend to develop accordingly. In this particular research, Dent intends to show how the aspects and principles of modern accounting actually help in defining the pathway taken by businesses as they change their culture and their operational approaches in the hope of creating adjustments that would make it easier for their company to embrace the new age culture of modern businesses. To be able to examine how Dent places an indicative consideration on specific elements of research and how he utilize the information he gets to actually provide a clear vision on what should be considered in relation to modern business management, several questions of research shall be given particular attention to in this discussion.

1. How does Drent define culture in his study of EuroRail?

Culture is ‘a way of life’. For organizations like EuroRail, Dent defines such an element based on the condition by which it affects the being of the whole company through creating a pattern of living for the people who are involved in the organization. Respectively, Dent recognized this matter through giving specific identifiable characteristics that define the culture of EuroRail from the point of its beginning towards the point of its development into the new world.

Being an old railway company, Dent notes that EuroRail is known for its being close to the hearts of the people it serves. It was one of the pioneer companies to provide advanced transportation option for the residents of the capital city. It was during this time that the condition of development in transportation is still being planned in blueprint. In relation to such need for advancement, EuroRail went on and designed their own railway services to serve the needs of the people they find in their established routes. This is the reason why its emergence was considered as a celebration of the Victorian accomplishment at the time. First of its kind, EuroRail was a perfect picture of what promises the future world could still offer in relation to the manner by which transportation is supposed to change the lives of the people not only in the capital city, but in the whole world.

Responding to their corporate responsibility, the administrators of EuroRail adhered to the condition of operation and the connection that they have with the government. They paid their taxes as well as the commission of the government so as to bring back to the society ‘what belongs to them’. In this manner, they are not only able to provide a better choice of transportation for the people, but instead, they are also able to empower the local economy of the community they intend to serve.

The culture that the administration of EuroRail follows is defined by Dent as rather traditional and conservative. While the company believes in uniqueness and innovation, it could be realized that the organization also understands the fact that there are limitations to its capabilities as set by the government. This way, they make sure that even though they are open to innovative suggestions, they stay safe within the mandates of the government and the limitations imposed through engineering. They run their operations professionally, making use of men who are well noted for their command in the field. This made it sure that the EuroRail operations would go smoothly. A great change however happened in the 1940’s which challenged this culture of the company. The nationalization of railway organizations has presented a great source of pressure for the organization to take a stand on whether or not to accept the new policies and regulations that could affect the culture of operation that they have already been used to for the past long years of being in the field of public transportation.

2. What was the research method used by Dent in this study? Why do you think he chose his particular method?

Dent specifically used the comparative approach of research. This approach was necessary to be applied in this particular type of research as it does provide a good source of indicative data that would allow the readers understand both the past and the present path that the company takes into consideration. Relatively, this would give a clear idea on how the administrators of EuroRail accepted the challenge of change and specifically embraced specifically new approaches to operation as needed.

Considering the original culture that the organization implicates, it could be analyzed that Dent wanted to make sure that his readers would evidently see the changes and how these changes affected the overall manner by which EuroRail has been administered by its leaders through the years. While development is an unavoidable condition in running a business, it was evident how the organization tried to face the odds in making it to the best part of their success in the industry. The adjustments which were considered necessary allowed the chance for the organization to grow and become a better source of competence in the industry that they are engaged in. The better they became in embracing the changes, the better they were able to perform according to their mission of serving the need of the community.

It is also through the method of research chosen by Dent that the differential conditions of using the principles of accounting in leading the organization to the path of development has been given particular attention to. It is through this approach that he was able to pinpoint which specific practices in accounting provided the company with the strength it needs to face new age challenges it was presented with by the new society of railway operators in the national gauge.

3. How does the transition from a railway to business culture take place in Dent’s study?

It was obviously shown in Dent’s study that EuroRail took a huge step in realigning its goals and its assets into becoming a commercially defined organization. Compared to its past operations, the business was expected to grow into a new form of culture that would provide them a better edge in serving the community while gaining as much profit as they need for themselves and their people. The company originally employed a huge number of population reaching to at least 160,000 people down from the office-based operators towards the onsite engineers and the railway operators who handled the actual transportation operation. Back in the years, the company’s focus was to simply serve the needs of the community to be transferred from one place to another with a serious consideration on time accuracy and service efficiency.

Since the organization monopolized the industry during the time of its beginning, there was no problem of competition. Focusing on advancement and developments and channeling all their assets towards such goal was easy. Relatively though, when the tides of time has began to change, the approach to operation took a different color, which further challenged the monopoly of company. Competition came it in the 1940s. The nationalization of the railway operations made it certain that the organization needed to adjust their focus into becoming more effective in getting the attention of more patrons compared to that of their competitors.

While they were the ones who began the industry, they were not likely to remain at the top position of the competition. Notably, this is what the aspect of general railway business imposed in the condition of reputation that EuroRail owned. The need to innovate, to research, to make sure that they are still the pioneer or at least are able to follow through the newest trends of modern transportation became a crucial part of the success that they are aiming to retain in their name and the mark that they want to convincingly own in relation to serving the needs of the public for general transportation demands. The research of Dent and the methodology he opted to use to present the details of the changes that EuroRail had to go through clearly gives an indicative condition by which the readers would clearly understand how the developments changed their culture gradually; making it easier for them to contain their capabilities and position in the railway industry up to these days.

4. What was the role of accounting in this transition?

Accounting procedures are accentuated to provide a good source of defining what assets of a particular organization could be used for development and how they could be used in a proper manner to respond to the mission of the organization. Separating the different elements of business success through rationally defining their role in consideration with the application of proper reasoning taken from mathematical operations, gives the business organizations a chance to see how they could divide everything they have to complete their goals accordingly. For many years, administrators of organizations have strongly relied on the aspects of accountancy to make sure that they are able to make probable decisions that could best support their needs and their desires in relation to establishing business success.

This factor of applying accounting principles effectively for the sake of developing workable conditions of advancements for an organization taking a path of adjustments as been shown effectively through the research presented by Dent in consideration with the operation of EuroRail. Noting the company’s operation from the point of its beginning, EuroRail operated the considerations of accounting principles to complete their tasks to the community, which is to serve them with their transportation needs. Innovation and maintenance of the railway and the train carts have been the primary resources that the organization channeled its assets to. This is because of the fact that these elements are the primary matters that are important in assuring that the organization remains in their position of serving the people of capital city. Providing support to their employees is the secondary reason for the control of assets that they impose in the organization. Accounting practices that are necessary to drive development is what makes the assessment of assets practically accurate for the organization’s current needs.

As the changes impose huge adjustments on how the accounting practices are considered by the administrators of EuroRail, the assets have become divided into several areas that serve not only the need of the organization to serve the people but also to make sure that they stay in the ‘business’. Competition made such changes necessary to happen. Getting a handsome return from the company’s operations became necessary. It was because of this that the percentage of the assets solely dedicated to operational developments is now being divided into particular concerns of marketing, press release and other matters that improve the popularity of the organization in the business.

Seeing the changes in the accounting procedures embraced by the organization at this cost plays a great role in indicating how much the business approach to operation changed most of the cultural aspects of operation that the organization once recognized. While public service is the aimed mark of the organization, it is the desire to remain in the business that drives their motivation to continuously improve service in comparison with what other organizations in the railway industry offers the community with. The changing of the market setting that organization operates in made the accounting practices vital in assuring the organization’s assured reputation in the industry. Accounting practices specifically supported the condition by which the company assumed its position in the face of the changing economic perspective in the manner by which railway companies operated for the society.

5. What meaning did accounting have to each of the two cultures?

The first culture that was recognized by the administrators of EuroRail was relatively community-centered. Applying the practices of accounting helped the administrators of the organization to find ways to utilize their assets with full efficiency in serving the specific needs of the people in relation to transportation. This is the reason why EuroRail was known not only for their capacity to bring people from one place to another, but also for their capacity to provide comfort to the passengers while they are giving the people a chance to be transported to their destination. Expanding their services including freight transfers were also accomplished through the application of the rational decisions made through considering particular accounting practices. Measuring the capacity of the organization to expand what they offer their patrons with specifically allowed the business to thrive under a culture that defined their desire to provide what their clients need and deserve. Establishing a culture of service, the accounting process embraced by the company allowed them to see through their assets and accordingly measure what could be used to support their desires to innovate their services for the people.

At the point of transition, the accounting practices of measuring the balance between assets and liabilities of the organization provided the administrators with the proper idea on how to handle the impending competition in the industry. Relatively, this allowed the organization’s administrators to find a way to make sure that their assets are properly managed while their face the competition at hand. The new culture of operations needed to be supported with full management of capital assets [including financial as well as material investments], which could only be successfully contained through the proper application of good accounting practices applied by the operators of the business. Notably, this is what constituted the advancement that EuroRail took as they intended to change the whole culture that the organization recognized to be able to operate in the industry without being smashed down by the other companies enjoined in it. Relatively, the company would have to face the need to compete with new challengers, in relation to this, they should be able to mandate the changes that they have to undergo through assuring that their assets are properly managed so that they would not lose in the competition just because of not being able to see the value of their assets apart from the need to utilize the said resources to promote advancements in the business.

6. How does accounting help to construct a particular knowledge?

Accounting is the process of measurement. It entails to balance out the expenses with the level of profit that comes in a particular organization based on the operations that it embraces. Most often than not, it is through the recognition of this value of the practices of accounting is considered to have a vital role in assisting organizations into becoming huge names in the industry of commercial competition. For the likes of companies close to that of the operations of EuroRail, the application of practical practices of accounting creates a great impact on how the organization takes on the different challenges it has to face in the market.

Most likely, the knowledge produced through accounting practices help administrators see through the different procedures they could take as they make decisions that are vital for the establishment of a better strategy in facing their competitors in the market. Through the years, this particular aspect of practice in accounting has created a great impact on how old-time organizations like EuroRail are able to take considerable reactions to the challenges that the new market provides them with. As seen from the study provided by Dent, accounting knowledge made it easier for the business managers to see what they should do in relation to the desires of advancement they would want to pursue. Their willingness to embrace the being of advancement based on the current position of the organization made it easier for the administrators of EuroRail to make it in the face of new competition as the government regulated their way of operation in the capital city. It could be learned then from this particular example that organizations could best be able to contend with the changing tides of modern business industries if they are able to see the balance of their assets in responding to the current needs of the organization in line with their desire to serve the community and serve the desires of their organization to gain profit from their operation.

Reflections and Conclusion

The life of a business organization relies on the capacity of its administrators to manage its resources effectively. For this particular cause, accounting practices applied in an accurate manner specifically help in defining the path that an organization could take in relation to such changes in the market. What makes up a condition of development is the willingness of administrators to accept change. In recognition of this particular fact, the administrators of EuroRail have been presented to have followed the tracks of advancement based on the accounting assessments that they were able to accomplish during the time of transition. Most often than not, it is because of this matter that the company was able to specifically mandate change that helped them to remain in the industry in the face of modern competition.

Like other old-time companies, EuroRail was able to make sure of their stance in the industry through realigning their mission, considering their resources and assessing their capacities to welcome change. Their willingness to adjust according to what accounting practices introduce them with allowed them to welcome a new wave of operations that could provide them with the edge in serving the people and gaining the profit they deserve from such operations. Through this particular study, it has been learned that long time organizations could accomplish success in the face of advancement if they are willing enough to make the adjustments needed for such accomplishments to be realized.

Reference:

Collier, Paul. Accounting For Managers: Interpreting Accounting Information for Decision-Making (copies in library), 4th Edition. Wiley, 2012.

Lee, Geoffrey A., The Coming of Age of Double Entry: The Giovanni Farolfi Ledger of 1299-1300, Accounting Historians Journal, Vol. 4, No. 2, 1977 p.80

Carruthers, Bruce G., & Espeland, Wendy Nelson, Accounting for Rationality: Double-Entry Bookkeeping and the Rhetoric of Economic Rationality, American Journal of Sociology, Vol. 97, No. 1, July 1991, pp. 40-41,44 46.

Friedlob, G. Thomas & Plewa, Franklin James, Understanding balance sheets, John Wiley & Sons, NYC, 1996.