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INTRODUCTION TO STRATEGIC MANAGEMENT ACCOUNTING - Coggle Diagram

- - - - Strategic management describes the process by which an organisation decides:
        • the direction it will take
        • the industry it will operate within
        • the types of products or services it will provide
        • its structure, systems and processes
        • its goals and objectives.
    - - is aimed specifically at improving organisational outcomes.
  - - - Operations (obtaining/producing goods or services)>Sales>Distribution>After-sales service
    - - Research and development, accounting, human resources, information technology and infrastructure
- - - - Internal
      - External
    - - Performance Measurement
      - Feedback and Review
  - - - cost classifications
        
        CVP analysis
        
        product costing
        
        marginal costing
        
        working capital management.
- - - - International Accounting Education Standards Board (IAESB) Matrix of Skills
        
        • intellectual skills
        
        • interpersonal and communication skills
        
        • personal skills
        
        • organisational skills (IAESB 2017).
      - 4 Ways MA Supports Organisations
        
        creators of value—developing the plans and strategies that set the direction of the organisation
        
        enablers of value—supporting management decision-making and implementation
        
        preservers of value—protecting value through effective risk management, controls and compliance
        
        reporters of value—providing clear and detailed reporting.
      - Professional skills to be achieved by professional accountants
        
        Intellectual
        (Intermediate)
        
        Interpersonal and Communication (Intermediate)
        
        Personal
        (Intermediate)
        
        Organizational
        (Intermediate)
      - Extension of the traditional skills
        
        • competitor analysis, customer cost and profitability analysis, supplier analysis and external benchmarking—including sustainability perspectives
        
        • industry- and organisation-level value analysis
        
        • strategic costing, life cycle costing and target costing for strategy formulation
        
        • activity-based costing and management for implementing strategic plans
        
        • cost driver analysis, value analysis, benchmarking of operational processes and various forms of budget variance analysis for managing and controlling the implementation process
        
        • applying strategic management accounting techniques to the management, selection, planning and implementation of projects
        
        • strategic performance measurement systems (e.g. the BSC) for managing and controlling the implemen-tation process—and for supporting strategy formulation.
- - - - Economic turmoil
      - Structural change
      - Globalisation
        
        Global competition
        
        Physical and capability factors
        
        Social factors and national cultures
        
        Legal and political systems
    - - Capital equipment
      - Information and communication technologies
      - Cloud computing
        
        • SaaS—software as a service
        
        • IaaS—infrastructure as a service
        
        • PaaS—platform as a service.
      - Employee-owned devices and open systems
      - Big data
    - - Corporate social responsibility—a stakeholder focus
        
        Environmental reporting
        
        Social reporting
        
        Sustainability reporting
      - Environmental management accounting
      - Ethics
    - - Flatter hierarchies
      - Offshoring and outsourcing
      - Joint ventures and alliances
      - Virtual offices and global teams
      - Management reporting
        
        Information for management reports
        
        Leading indicators
        
        • External economic factors(e.g. interest rates, GDP and foreign exchange rates)
        • Internal factors such as customer satisfaction
        • Commodity price changes
        
        Competitor activity
        
        • Estimates of competitor cost structures and pricing
        • Analysis of competitor strategies and potential responses
        
        Industry analysis
        
        •Growth and Profitability including life cycle and business cycle analysis
        • Impact of current or potential regulations or political changes
        
        Non Financial Performance
        
        •Physical volumes and flows including throughput, emissions and waste
        • Employee performance, satisfaction and engagement
        •Efficiency and quality results
        
        Projects
        
        • Core criteria including cost, quality and time
        • Business cases, approvals and post-implementation reviews
      - Responsibility Centres
        
        Cost
        
        Revenue
        
        Profit
        
        Investment
- - - - Product life cycle analysis
        
        Introduction
        
        Growth
        
        Maturity
        
        Decline
      - Boston Consulting Group growth/share matrix
        
        Stars
        
        high-growth markets and hold a high market share
        
        Cash cows
        
        high market share in a low-growth market
        
        Question marks
        
        low market share in a high-growth market
        
        Dogs
        
        low market share in a low-growth market
  - - - • political
        
        • economic
        
        • social
        
        • technological
      - Regulation
      - Corporate social responsibility
      - Business cycle
        
        boom
        
        recession
        
        depression
        
        recovery
    - - Force 1: New entrants
      - Force 5: Existing competitors
      - Force 3: Customers
      - Force 2: Alternative or substitute products
      - Force 4: Suppliers