Hewlett Packard Company’s Cost Accounting Analysis Free Essay

Executive Summary

The chosen company for financial accounting analysis is Hewlett Packard, American Information Technology Company. It is publicly traded company which specializes in personal computers, notebook computers, servers, network management software’s, printers, digital cameras, calculators and other technology related equipments in form of hardware and software. The company maintains its headquarters in Palo Alto, California, United States.

The company was started by two young entrepreneurs William Hewlett and David Packard, who graduated from Stanford University in 1934. The Company has humble beginning of first initiation beginning a garage , during Great Depression era for $538/- (Garage) Hewlett Packard was incorporated on August 8, 1947 and went public on November 6, 1957. Hewlett Packard emerged and became recognized overtime, as symbolic founder of Silicon Valley.

The humble beginnings of innovative oscillators in a garage launched a high-tech revolution which is regarded as a legend in Silicon Valley. It is almost like the genesis story inspired in Silicon Valley, trend from Apple to Yahoo to Google; HP has its place of greatness in the sphere. HP emerged out of the vision of two dynamic entrepreneurs not just as accelerating evolution of electronic industry, but also maintained social, organizational and technological which is the trademark for the company. Their vision was acknowledged popularly as the HP Way, with creation of corporate culture and management style, which came up with the approach that respected personal autonomy and stressed corporate decentralization. “HP’s focus on openness, education and endless information swapping became a model for the networked modern Valley. (Jacobson)

Introduction and Overview

The beginning of 21st century marks a new focus area for Hewlett Packard which aims to simplify technology experiences for all its customers, from individual consumers to the largest businesses. It is interesting to see that HP’s portfolio spans from printing, personal computing and IT infrastructure and grows to become one of the largest IT companies. The year 2002, highlights a new direction for HP, when it completes its merger transaction with Compaq Computer Corporation.

In this new position HP has attained the position of the leader, in the global provider pf products, technologies, solutions and services to consumers and businesses. The company’s offerings span IT infrastructure, personal computing and access devices, global services, and imaging and printing. HP has taken brave initiative to stabilize its position in the later part of the decade, by a steady stream of acquisitions influencing the software, personal computing and printing markets, in 2007. HP also achieves remarkable revenue of $100 billion. (HP Timeline, 2008)

HP has steadily risen to the outstanding 11th place, in the Fortune 500 ranking of the leading companies based on performance and revenue. HP enters a new market, and announces its digital entertainment industry strategy, with introduction of wide array f products and partnerships transforming the way people experience music, movies, TV, photographs and digital entertainment. HP. “wobulation” is honored as one of thetop new products by Popular Science Magazine.

This has been the revolutionary projection technology which displays without changing the light modulator, increasing pixels or increasing the cost of the projector. It dominates as leading partner in the innovative and dynamic IT industry, keeping pace with the change. (HP Timeline, 2008)

HP has also expanded its geographic area and secures three major managed services deals in telecommunications, manufacturing and financial services industries, which reflects its strong value in proposition for high tech, low cost and best assured customer experience. In year 2003, HP unveils Adaptive Enterprise strategy to help businesses manage change and get more from their IT investments. The company unveils new services, software, solutions and enterprise reference architecture designed to help companies measure, architect and manage change by creating a tighter linkage between business and IT. HP also announces a strategy to radically simplify technology to help people “enjoy more”. This move makes HP a leader in imaging, printing and home computing entering confidently into the fast-growing digital photography and entertainment markets. (HP Timeline, 2008)

As part of the strategy, HP unveils more than 100 consumer products – its largest consumer product rollout to date. Included in the rollout is the world’s first eight-ink consumer photo printer, the HP Photosmart 7960. HP announces a worldwide initiative for the small and medium-sized business (SMB) market, one of the fastest-growing and most important segments in the global economy. The Smart Office Initiative provides tailored support services, local expertise, and products to help SMBs manage their unique business needs. As part of the launch, HP announces more than 100 different products, solutions and services.

The significance of year 2006, is a milestone in the organizational, financial and the enterprise related set up of the Company. In September, CEO and President Mark Hurd is named Chairman of the Board.HP also achieves the milestone target of shipping its 100 millionth LaserJet printer. HP shipped its first LaserJet printer in 1984. In October, HP acquires VoodooPC, a high-end gaming PC provider. HP acquires Mercury Interactive Corp. in November, HP’s largest software acquisition to date, to create a new organization for business technology optimization (BTO).

It maintains the top twenty target by remaining at 14th rank in the Fortune 500 companies ranking. HP maintains it’s outstanding revenue: $91.6 billion and employs: 156,000 people worldwide from Asia to Europe and America. There is substantial increase in revenue in just one year , in 2007 HP shows Revenue of $104.3 billion with Employees reaching worldwide figure of 172,000 people of diverse cultures and ethnic backgrounds. (HP Timeline, 2008)

Hewlett Packard has been an innovative company which has reined the IT industry with adopting dynamic changes within the structure and the organization of the company over time. It is ready to meet the challenges of the new decade. The new focus of the new age HP is in extending its strategy of establishing research centers in growing economies, HP opens a research lab in St. Petersburg, Russia. HP Labs Russia is the third facility that the company has opened in the past five years. HP Labs China began operations in Beijing in 2005, and HP Labs India opened in Bangalore in 2002. HP Labs also has facilities in Bristol, U.K. (1984), Haifa, Israel (1994) and Tokyo, Japan (1990). Its headquarters site is in Palo Alto.

HP has also taken an innovative leadership role and achieves its goal of recycling one billion pounds of electronics. This year marks the 20th anniversary of the inception of HP recycling programs, which now operate in more than 40 countries, regions and territories. HP is also involved in licensing its technology for a drug delivery skin patch that enables painless, controlled release of drugs. Developed as a way to repurpose its inkjet technology, the technology in the skin patch is similar to that employed in HP’s patented process for its inkjet cartridges.

Throughout 2007, a series of acquisitions expands HP’s influence in the printing, personal computing and software markets. HP acquires:

  • Tabblo Inc., to make printing from the web easier and more convenient;
  • Logoworks, to provide small businesses with access to professional design solutions at a fraction of market cost;
  • SPI Dynamics, Inc., for application security assessment software and services;
  • Neoware Inc., a provider of thin client computing and virtualization solutions;
  • MacDermid ColorSpan Inc., a manufacturer of wide-format digital inkjet printers;
  • Opsware, a market-leading data center automation software company;
  • EYP Mission Critical Facilities Inc., a global consulting company for large-scale data centers. (HP Timeline, 2008).

Hewlett –Packard is known for its reputation as an honorable and ethical company, which has guarded and secured its position with long term service in innovative field of technology. In 2006, Hewlett-Packard had an ethical issue regarding leaking information from a Board Member that disclosed information outside of the company. Additionally, they use many subcontractors and consultants and how they are able to control their work legally and ethically. Due to this, should they ethically monitor everything that the employees access including their emails? Is that invading their right of privacy? Hewlett-Packard guards the confidentiality and the privacy of its products and services zealously.

Journal Entries

Hewlett-Packard is a very strong and sound company, always known to manage its financial commitments with insightful analytical approach. Hewlett Packard (HP) uses an activity-based costing system. The advantage for an activity based costing system provides HP a more cost effective way to reduce the cost to produce new products. HP would be able to divide the cost pool into several groups of overhead by activity instead as a whole overhead charge when it would give larger amounts in activities to design one product and over value the cost. This way HP only charges overhead to the percentage of use for that activity or product design/manufacture. Activity based budgeting would focus on all cost to one activity to produce, sell, and service a product including all its related overhead costs. HP can focus its activities on:

Total quality control – This would focus on budgeting for all the cost to design and manufacture products.

Market Research – This budget would focus on delivering products for the client through surveys and advertising.

Purchasing – cost drivers budget for cost of products to manufacture products.

The budgeting criterion for HP is also very promising and flexible, the company diversifies its budget into three categories. These are :

Revenue budget – This of course all company needs to find out the selling price, units sold and total revenue budget for the year.

Manufacturing overhead costs budget – This would do a sum of all the indirect cost of manufacturing budget for the year

Customer-service budget – Hewlett-Packard have to keep up customer service and product warranty expenses. It is important for HP to budget for those expenses for the year.

An analysis of the flexible budget, based on the cost budget or analysis factors can help determine the cost drivers which can guide the allocation of resources within as well outside the company various portfolios. Hewlett-Packard’s cost drivers are associated with technology services, consulting solutions for design and implementation, and outsourcing services for customers’ business process.

Costs are associated with: Materials to manufacture computer, IT services, and products from vendors and suppliers

Overhead cost – real estate (high real estate for each location and Information Technology)

Business cost for each location for sales professional and marketing.

The sales, marketing, and distribution from physical and internet stores, retail and independent distributors ; manufacturing and materials of components, configuring, and computer systems and accessories and domestic and international operations for sales, research and development, marketing strategies, and overhead costs of each corporation or operational unit.

All these factors combined affects the pricing and the revenues of the company in the light of the future. HP provides servers, storage, software, computers and IT services worldwide. HP’s industry focuses on communication, media and entertainment, manufacturing and distributions. So the costs are in relation to the cost associated with technology services for the delivery of product and warranty, consulting for government and private companies for applications and packages, and outsourcing globally. The indirect costs for HP would be the staffing cost to maintain and support the server, rent and utilities, research and developing and implementing them.

HP provides service at their data centers to keep important client’s technology information. HP has a high real estate space to have a back up system for these clients. Keeping utilities for these building are high to keep it operating and cooling systems so they computer systems don’t overheat. Then there are management costs to decide on expenses to purchase a machine or develop a technological application. Also the administration and mainstream IT cost of everyday operations that is not directly related to the products and services.

The comprehensive evaluation and analysis of the cot driving factors in terms of product, manufacturing, real-estate, manufacturing and distribution takes in to account both the direct sots and the indirect costs. The indirect costs for HP would be the staffing cost to maintain and support the server, rent and utilities, research and developing and implementing them. HP provides service at their data centers to keep important client’s technology information. HP has a high real estate space to have a back up system for these clients. Keeping utilities for these building are high to keep it operating and cooling systems so they computer systems don’t overheat.

Then there are management costs to decide on expenses to purchase a machine or develop a technological application. Also the administration and mainstream IT cost of everyday operations that is not directly related to the products and services. (HP, 2007)

An increase in revenue steadily, would empower the organization to spend more in production and manufacturing, with leverage to maintain higher level of staff in better locations which may be profitable globally. This would enhance HP’s cost drivers and give a boost to the potential market. It would give better control over direct costs and indirect costs. This would give more powerful strategic advantage to explore and invest in new enterprise with the changing world scenario.

Conclusion and Recommendations

HP has grown to be one of the world’s largest IT companies, with focuses on global citizenship. There is commitment is to their product, service and innovation for decades. They have steadily improved in their world rankings in Fortune 500 companies and with improved revenues and capability of growth in employment worldwide. The impact of the vision of the two legendary founders Bill Hewlett and Dave Packard, have been the light behind the success. It is an important part of their heritage and these values , are built on solid foundation which focuses on strong corporate accountability and governance, with a commitment to environmental responsibility and active investment in communities in which they do business.

Hewlett- Packard the vision is to be innovative and unparalleled, with ability to drive simplicity, innovate and influence industry actions in a way that is good for customers, good for business and good for planet. The outstanding progress demonstrates that HP can cut costs and increase revenues at the same time. This is very promising for the success and growth of the company. HP moves and mobilizes towards action which is growth oriented and environmentally viable. Success does not make them complacent, and they are on their toes never underestimating the claws of competition.

Their future vision rests on the great growth opportunities provided by the explosion of digital content and addresses their $1.2 trillion market opportunity. They have a history, a portfolio and a set of unmatched capabilities which makes them a leader in the industry. HP invests in the right people and infrastructure which is the key to their growth and expansion. They are always challenging their potential to leverage their scale and reduce costs to improve their operating performance. They are clear in their vision to make a statement which emphasizes on one goal: “to make HP the partner of choice for our customers, the investment of choice for our stockholders and the employer of choice for our employees”Mark V. Hurd, Chairman and CEO, Hewlett-Packard. (HP, 2007)

Work Cited

HP Reports Fourth Quarter 2007 Results: Financial News – Yahoo! Finance.

HP, Annual Report 2007-HP. 2008. Web.

HP Timeline, HP timeline — 1960s. 2008. Web.

Jacobson, David Founding Fathers. 2008. Web.

IKEA In South Korean Business Environment

South Korea Potential for IKEA

South Korea is currently among the countries with a stable economic and political situation that attracts foreign business. IKEA is a Swedish enterprise that entered the Korean market in 2014 and currently operates two facilities, and the third one is under construction (Bae, 2018, para. 1). The brand mainly focuses on selling furniture and related home products, as well as some types of food. Before coming to South Korea, IKEA successfully operated in other countries, especially in Europe and the U. S.

Nowadays, the Asian region seems to have many opportunities for foreign direct investment (FDI). Specifically, South Korea is experiencing stable economic growth, and the country’s population is growing wealthier (South Korea: economic and political outline, 2019, para. 3). In this situation, a shift in demand occurs, as people experience a rise in income (Gillespie, 2016, p. 56). Koreans become interested in furniture and home décor that meets the world trends in interior design. IKEA may successfully compete on the market with smaller local businesses to respond to this need.

Background Information on IKEA

Operating for several decades, IKEA has grown into one of the most well-known furniture retailers in the world. Nowadays, it operates 430 stores in 52 countries based on a complex franchise system (IKEA franchisees, 2019). It includes eleven groups of companies, each responsible for a set of locations. Ingka Group, being the largest one of them, governs operations in 372 stores, including those in South Korea.

The financial performance demonstrates that IKEA has been successful over the past year. The sales rates increased by 6.5% compared to 2018, and the total amount reached 41.3 billion euros (Inter IKEA Group FY19 financial performance, 2019, para. 2). The data includes the sales of retail products, food, and customer services. As IKEA became dedicated to developing online retail, the growth in e-commerce revenues reached 43% compared to the previous period (Inter IKEA Group FY 19 financial performance, 2019, para. 7). The company spends much of its income on various development initiatives. For instance, 175 million euros were invested in designing innovations associated with products, materials, and retail models (Inter IKEA Group FY 19 financial performance, 2019, para. 4). Some of the new items launched recently include smart blinds, remote controls and speakers, as well as the Home smart app. There is a tendency of creating products that would help to technologically upgrade a living space.

The company’s international network is very diverse, yet every location is set up according to the single IKEA vision. The two facilities operating in South Korea are located in Gwangmyeong and Goyang (Bae, 2018, para. 3). The new outlet is planned to be opened in Giheung-gu, Yongin by the end of this year. The company is on the top hiring list, with 700 new staff members employed only in 2018 (Bae, 2018, para. 5). Its revenue in the area in 2017 reached $326.1 million, with 6.5 million customers visiting the stores (Bae, 2018, para. 7). The numbers demonstrate the high potential of IKEA network development in South Korea.

Background Information on the Business Environment in South Korea

Although the business environment in South Korea has mainly positive tendencies, the situation across different sectors is not uniform. The changing demographic profile forces changes in the sphere of technological development. Despite the stable economic growth, the country may be affected by the ongoing trade war between the U.S. and the Asian region, specifically China. Moreover, there is a trend of the government trying to improve relations with North Korea, which may influence the country’s politics. All these forces create the base for a PESTLE analysis (Wetherly, 2018, p. 25), which should be considered by IKEA when developing strategies for this market. Below is an overview of the political, economic, social, technological, legal, and environmental situation in South Korea.

Political Factors

South Korea is considered a politically stable country with a robust governmental position. It is a republic governed by liberal and conservative parties, with the president Moon Jae-in as the head of state (South Korea, n. d., para 1). The aggregate freedom score for South Korea is 83 out of 100, which is considered very high. The ratings for freedom, political rights and civil liberties are determined as 2 out of 7, where the least number is the best result (South Korea, no date, para. 1). While there are specific issues like minority rights, Korean society experiences respect for personal freedom.

The recent developments in the country’s politics allow concluding that the government is interested in maintaining good relationships with the rest of the world. One of the most important factors is the attempts of the current president to set up a dialogue with the leader of North Korea (South Korea, no date, para. 2), as the rapprochement of the two states may increase the level of stability in the region and attract foreign business. However, there may be a high level of corruption among government officials. For example, the former president was impeached due to the corruption scandal in 2017 before being sent to prison (South Korea, no date). This may be a sign that some administration executives can make it difficult to enter the market.

Economic Factors

South Korea has demonstrated remarkable growth over the past several decades. It is currently one of the largest economic powers in the world, being at the fourth place in the Asian region (South Korea: economic and political outline, 2019, para. 1). Although the country’s wellbeing is affected by weakening exports and the lack of investment, the GDP level remains stable over the past few years.

GDP level
Figure 1: GDP level (South Korea GDP growth rate, 2019).

The dependence on export and international trade are one of the weakest sides of the South Korean economy. Moreover, the competition from China is growing, as this country is becoming more successful in the global market (South Korea: economic and political outline, 2019, para. 2). Currently, as giant foreign corporations begin operating in South Korea more frequently, the government tries to protect local businesses. For example, the country protects presently small shops by restricting large retailers like E-mart by keeping the latter closed two Sundays a month (Yoon, 2018, para. 4). The same measures may eventually be applied to IKEA in the future.

Social Factors

The country’s demographics shape the current economic situation in South Korea. There are currently about 51 million citizens (South Korea social economy report, 2019), and many people are growing wealthier – the country is successfully combatting poverty. The majority of the population lives in big cities, especially in Seoul, and the density is one of the largest in the world due to the limited territory.

Figure 2: Population (South Korea population, no date).

At first glance, the situation seems beneficial for companies like IKEA, as there is an expanding market with growing opportunities. However, two main issues are facing Korean society, being the population ageing and the potential unemployment growth. There is currently a rapid decline in the number of working-age people, which sets the country as a leader for this factor among OECD member states (Kim, 2019, para. 2). Companies are currently struggling to design technologies that would effectively substitute people in the workplace. Although it may help to solve the issue of employee shortage nowadays, robots in the future may take away the entire job sectors away from people.

Another issue in Korean society is the remaining gender inequality. It is determined that the country’s gender gap rate is the highest among the OECD members, being 37% (South Korea social economy report, 2019). The government is currently working on this issue by including it in the Sustainable Development Goals program. For example, salary disclosures should be done by businesses to allow identifying whether there are differences between what men and women receive for their work.

Technological Factors

Despite the need for developed technology mentioned in the previous section, South Korea relies heavily on machines and software import. It is estimated that the country is behind the U.S. and Japan by 20% to 30% (Kim, 2019, para. 4). However, South Korea is currently the leader in utilizing robots in manufacturing. Besides, the country stimulates small local companies to develop automated technology solutions. South Korea has also established the 5G network, which allows transmitting information more progressively. The country is home to Samsung corporation, which is one of the leading powers on the smartphone market. Most of the population uses smartphones, which is the possibility of establishing successful e-commerce.

Legal Factors

Although South Korea welcomes foreign companies, there are some significant restrictions. For example, such economic sectors as nuclear fuel processing, electricity generation, radio and TV broadcasting, media publishing, transportation and others are fully or partially restricted on foreign investment (Cho, Ahn, and Kim, 2019). Companies wishing to operate in Korea should also consider the local employment legislation, which is regulated by the Labor Standards Act (Cho, Ahn, and Kim, 2019). Other laws are associated with such matters as equal employment opportunities, insurance, and minimum wage.

The Korean government aims to ensure fair competition on the market. The Monopoly Regulation and Fair Trade Act may put some restrictions on businesses that are believed to engage in power abuse (Cho, Ahn, and Kim, 2019). For example, after the first IKEA store had opened in South Korea, it appeared that the prices on products were much higher than those in other countries (Kang, 2014, para. 1). The case was subject to review by the antimonopoly commission.

Environmental Factors

Becoming a technological giant over the past few decades resulted in a worsening environmental safety rating in South Korea. For example, the air quality in 2017 was the worst among all OECD members (South Korea economy report, 2019). Nowadays, climate action is one of the government’s priorities, as it is a part of the Sustainable Development Goals programme. For example, the taxes on liquid natural gas are lowered to reduce the use of thermal coal by the industries. The shifting perspective may help companies focused on sustainability to be competitive on the market.


IKEA is the multinational furniture and home décor retailer that has a successful business model. The market environment in South Korea seems to have significant potential for this brand. Its current initiatives in politics, economics, and environmental policy match the company’s operation style and sustainability approach. However, IKEA also needs to be regulated by Korean authorities to ensure fair pricing strategies and competition with small local businesses.

Reference List

Bae, I.Y. (2018) ‘IKEA to open third outlet in Korea’, Retail in Asia.

Cho, C.H., Ahn, C.S. and Kim, S.J. (2019) Doing business in South Korea: overview.

Gillespie, A. (2016) Foundations of economics. 4th edn. Oxford, UK: Oxford University Press.

IKEA franchisees (2019). Web.

Inter IKEA Group FY19 financial performance (2019). Web.

Kang, T.J. (2014) ‘IKEA to face probe in South Korea’, The Diplomat.

Kim, S. (2019) ‘South Korea’s robots are both friends and job killers’, Bloomberg Businessweek, Web.

South Korea (no date). Web.

South Korea GDP growth rate (2019).

South Korea population (no date).

South Korea social economy report (2019). Web.

South Korea: economic and political outline (2019).

Wetherly, P. (2018) ‘Introduction: “business” and its “environment” in a “globalizing world”’, in Wetherly, P. and Otter, D. (eds.), The business environment. 4th edn. Oxford, UK: Oxford University Press, pp. 3-32.

Yoon, J.Y. (2018) ‘IKEA may face mandatory regular closures in South Korea’, South China Morning Post.

International Accounting In Kenya


In the past two decades Kenya had experienced under development, hopelessness, poverty had increased unemployment had become rampant, insecurity almost in most homesteads, hunger among the poor, health condition of the people had declined, corruption and bad governance had become entrenched as the people. The oppression of the people was observed which say people being divided into ethnic lines, hatred was rampant and suspicion was seen which created division between the governors and the governed.

In order to recapture the situation of the country to become better in the future the government has established mechanisms to curb the vices in the country such as setting up recovery programs which are for enhancing development.

The reforms are meant to steer the economy to greater heights of prosperity this includes good governance, rule of law, public security and social solidarity. By the government offering free and compulsory free primary school education this is a positive move of ensuring that the government is on its way to recovering from poor state it was in and. with the initiation of a National Social Health Insurance scheme this will ensure all the citizen’s access have access to good health care.


Culture is a way of looking at things. Cultural perspectives focus on the understandings that are negotiated and enacted by actors in the regulatory arenas. Culture is essential to all forms of collective action and social organization as well as social changes operate through the medium of culture. It’s a set of shared understanding which makes it possible for a group of people to act in concert with each other. It’s necessary to study culture because without understanding people’s culture it’s impossible for people work together as a team.

Culture can either be local or general. Any group can have shared understandings unique to itself. Culture is affected by conflicting principles and individual differences hence the need to look for ways of curbing this vice. In a debate over whether to move a marked system of emissions trading in U.S air pollution regulation there was conflict over two different normative visions of appropriate regulation.

One office advocated a uniform rule, equal-treatment, mission, orientation approach to regulation while the other advocated a market-based, cost-differentiated, efficiency approach both caps draw on themes in general culture which structures local political interaction by focussing consideration on certain possibilities and obscuring others. Culture is highly political since there are always conflicting principles and differences among people in the society.

A culture is created to solve problems in a society although most problems have more than one way of solving them. The culture can be understood as a necessary medium for social interaction for both constrain group behavior and it creates new possibilities for new forms of social interaction.

Regulatory bodies have been known to be forums in which appropriate behavior and interests are defined and redefined. They help regulate the conduct of the people in a particular society, so that they don’t move away from the structured policies of a society citizens of any country should conform to the communities codes, they must act in reference to them and participate in their definition since ignoring the communities code of behavior causes one to lose an opportunity to pursue their interest within the community. The views of the regulatory bodies are meant to be good, with right policies and they are fair.

Structural constraints political pressures, general cultural assumptions, legal requirements and bureaucratic procedures are forms of regulatory cultures which organize the activity of regulation.

  • The regulatory framework in Kenya in the case of sources of finance

The capital markets authority was established in 1989 through capital markets authority act cap 485 to regulate and oversee orderly development of Kenya’s capital markets. The authority was to ensure that there was development and maintenance of appropriate legal and regulatory framework to boost investor confidence, enhance efficiency. It also reviews existing policies and makes recommendations to the government on new policy issues that could promote and enhance market development.

For a long time Kenya has been performing poorly due to poor economic policies. Rising problems of corruption and governance and deterioration of public services and thus the country has not been attracting investors into the country. Several structures have been established to curb this problem such as changing public sector into private sectors so that the private can maximize profits since public sectors only offer services.

  • The Investment Promotion act 2004 was established so as to streamline the

Administrative and legal procedures so as to enhance an effective investment climate. This legislation aims to offer beneficial services to the customers like recruiting qualified personnel to run various organizations so as to enhance effective service delivery.

The International Chamber of Commerce published an investment guide in May 2005. the guide was to provide comprehensive analyses of investment trends, opportunities and the regulatory framework of any country. Most disincentives in Kenya include government overregulation and inefficiency of expensive and irregular electricity and water supplies, air underdeveloped telecommunications sector, poor transport infrastructure, and high costs associated with crime and crime and general insecurity.

Kenya government may revoke licenses if an untrue statement is made when applying for licenses. It also has a comprehensive legal framework to ensure intellectual property rights protection this is to ensure that writer’s material is not copied without the writer’s consent. The ministry of trade and industry is responsible for patents, trademarks and trade secrets.

In banking act 2004 parliament was given mandate to register or deregister commercial banks and financial institutions by the minister of finance. Central bank of Kenya ensures that all banking institutions comply with the companies act for example they are supposed to publish all their audited companies’ accounts to the publish so that they can prove to the public that they are operating according to the company’s statutes.

Regulatory framework for the profession

The government of Kenya has set up mechanisms to curb vices like corruption, fraud, embezzlement of public funds insufficient public sector, weak judiciary and poor legal framework such as strategies for reform. The reform strategy has been established to promote good governance.

The institutional support project aims at supporting judiciary reforms in Kenya such as procurement and auditing system. This aims at strengthening the anti-corruption initiative of the government. Kenya has set up legislation and set up appropriate institutions and has given them the mandate to deal with anti-good governance tendencies.


In the public sector governance, justice law and sector reform program were laid out a five-year plan for ensuring that the sector ran smoothly. The public sector was involved in institutionalized corruption authoritarian government abuse and lack of respect for human rights and systematic weakening of the institutions of state and government. The strengthening of the rule of law and security and implementing reforms in public administration systems were critical in improving transparency and accountability


Bell, R. (1985) The Culture of Policy Deliberation.New Brunswick, NJ Rutgers University Press

Berger, R and T Luck Mann (1966). The Social Construction of Reality, Garden City, Double Day. Web.

Goldenberg and V.R Hill The Elements Of Accounting (1966) Web.

Kameka, G (2004) Improving Multi-Sectoral Cooperation And Coordination In Support Of ECD Programs Unpublished Master’s Major Project Report University Of Victoria, British, Columbia, Canada.

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