MISS
ACCG330
Strategic Management Accounting
Session 1 2014
Week 1
Introduction and Course Overview
Introduction to Strategic
Management Accounting
Reading: Hopper, Northcott &
Scapens (2007)
Topic 1- Introduction to Strategic Management
Accounting
ACCG330 Readings: Topic 1
Overview
• The role of strategic management in implementing business strategy
• The role of accounting information and management accountants in strategic management
• Traditional management accounting versus strategic management accounting • Relationship between strategic management and strategic management accounting
• Summary
1
Role of strategic management in implementing business strategy
• Main objective of business strategy is to position the firm so it has a competitive advantage
– Business strategy produces long term plans for the business, taking into consideration plans and possible actions of competitors
• Contemporary organizations need more strategic management approaches to manage their activities
The Concept of Strategy (1)
• Definition: Strategy describes the general direction in which an organization plans to move to attain its goals (Anthony & Govindarajan p.56).
• Definition: Strategy is to choose a company’s
(strategic) position, the trade-offs it needs to make, and the set of activities it will undertake to service its market (Porter 1997 p.42).
2
The Concept of Strategy (2)
• Andrews – strategy formulation is a process that senior executives use to evaluate a company’s strengths and weaknesses in light of the opportunities and threats present in the environment (SWOT analysis) and then to decide on strategies that fit the company’s core competencies with environmental opportunities.
Two Levels of Strategy
• Corporate level strategy involves making choices about the types of businesses in which to operate, which businesses to acquire and divest, and how best to structure and finance the organisation
Strategic Management Accounting
Session 1 2014
Week 1
Introduction and Course Overview
Introduction to Strategic
Management Accounting
Reading: Hopper, Northcott &
Scapens (2007)
Topic 1- Introduction to Strategic Management
Accounting
ACCG330 Readings: Topic 1
Overview
• The role of strategic management in implementing business strategy
• The role of accounting information and management accountants in strategic management
• Traditional management accounting versus strategic management accounting • Relationship between strategic management and strategic management accounting
• Summary
1
Role of strategic management in implementing business strategy
• Main objective of business strategy is to position the firm so it has a competitive advantage
– Business strategy produces long term plans for the business, taking into consideration plans and possible actions of competitors
• Contemporary organizations need more strategic management approaches to manage their activities
The Concept of Strategy (1)
• Definition: Strategy describes the general direction in which an organization plans to move to attain its goals (Anthony & Govindarajan p.56).
• Definition: Strategy is to choose a company’s
(strategic) position, the trade-offs it needs to make, and the set of activities it will undertake to service its market (Porter 1997 p.42).
2
The Concept of Strategy (2)
• Andrews – strategy formulation is a process that senior executives use to evaluate a company’s strengths and weaknesses in light of the opportunities and threats present in the environment (SWOT analysis) and then to decide on strategies that fit the company’s core competencies with environmental opportunities.
Two Levels of Strategy
• Corporate level strategy involves making choices about the types of businesses in which to operate, which businesses to acquire and divest, and how best to structure and finance the organisation