THE IMPACT OF EFFECTIVE INTERNAL CONTROLS FOR MANAGING BUSINESS STRATEGIES AND MINIMIZING RISKS IN THE RETAIL GROCERY INDUSTRY

Open Access
Author:
Yin, Linda Yilin
Area of Honors:
Accounting
Degree:
Bachelor of Science
Document Type:
Thesis
Thesis Supervisors:
  • Karl A Muller Iii, Thesis Supervisor
  • Orie Edwin Barron, Honors Advisor
Keywords:
  • internal controls
Abstract:
After the most recent economic recession that started at the end of 2008, business owners, investors, and regulators have learned a tough lesson about the importance of managing business risks. There is an increased awareness and emphasis placed on more preventative measures because the numbers on the financial statements are not the only factors in determining the financial health of a company. This thesis attempts to demonstrate that an effective set of internal controls is necessary beyond what is required for financial reporting. Companies that implement software for managing production, cross-functional unit integration, and risk management will have an advantage over competitors. The specific industry analyzed is the high-end retail grocery industry, which provides their consumers with natural and organic products on top of other products offered at regular supermarkets. Four leading public companies in the sub-industry of high-end grocery are examined. Through analysis of recent technological implementations and changes to the internal control environment, this thesis draws a conclusion on the impact of the internal controls to managing risks and improving overall company performance.