Strategic Management Accounting Assignment Sample
As you all know accounting is the language of business. Strategic management accounting studies, examine analyses and evaluate the company’s financial standing/position regarding its short, medium, and long-term goals. It is useful as well as pertinent in reviewing and adjusting the goals. Strategic management accounting helps the organization to stand class apart from its competitors and make great profits in the global market place. Whereas, on the other side traditional management accounting proved not that viable and feasible. Strategic management accounting evaluates the company’s cost, cost advantage, and product differentiation to make market decisions.
An attributable component of strategic management accounting is scrutinizing factors that take place externally of the organization. These factors consist of new competition in the marketplace, the cost of entering the market, and the total number of competitors in a specific industry. The more aptly and precisely the accounting department is competent, the better way the company will understand where it stands at the moment, and where it is headed in near future.
A well-known, and as well as a pioneer writer on the subject of strategic accounting management, defined it as, “a form of management accounting in which focus is laid on information regarding the factor external to a firm, as well as non-financial information and internally generated information.”
Traditional management accounting was incompetent. Strategic management account purports to lay emphasis and focus majority upon ways in which a company attains a sustainable cost advantage, the relative cost position.
What is the Role of Strategic Management Accounting?
The role of Strategic management accounting is all about making great profits for the business or organization and ensuring a viable return of investment ROI. It can also help businesses to eliminates or cut of wasteful operations and improvise its profit margin. It helps companies improvise their market share in the market place.
Strategic Management Techniques
The strategic management techniques assist the company plan and execute projects designed to align, line up, and go hand-in-hand with the company mission. The techniques enable us to review or gauge projects to keep a watch on progress or obstructions that may hinder it from reaching its goal.
This is one of the strategic management techniques that enable managers to scrutinize the project from beginning to end. The evaluation is pertinent and as well as useful in determining which activities are useful to accomplish a project and know the tenure for completion.
So, break-even analysis is a tool or you may say instrument that a company uses to decide the number of products a company must sell to break even and become profitable as well as successful.
Game theory is applied in mathematics. Or you may say tried and tested mathematics. This technique is used to determine how competitors or other players in the market will respond to price inflation and new products. Game theory enables the business to implement the strategic decision.
Financial Control Techniques
Budgets, financial audits as well as financial analysis, these are the financial control techniques to keep the cost of the business under control.
Strategic management is an ongoing procedure which strengthens the organization in bringing all required market changes in their internal working and ensures its lifelong survival.
What are the 7 steps of the strategic management process?
1. Developing Organization Vision and Mission– it is very important to draft or formulate a mission in the light of vision. The vision indicates where you are heading whereas the mission depicts the current scenario, the organization’s current’ business.
2. Analysis of Organization– In the second step, the strategy makers or experts conduct a deep analysis of the organization
3. Setting Objectives– They set objectives in the third phase.
4. Strategy Formulation– The next step is choosing the most viable and appropriate strategy among various alternatives available.
5.Strategy Implementation – In this step, strategies framed by managers are put into action or work via successfully implemented within the organization.
6 Strategy Evaluation and Control– Monitoring and evaluating performance is very important. The sixth step in the strategic management process is concerned with monitoring the performance to makes sure all activities are performed in line with the plan. This strategy helps to keep a track of operation. Managers can take timely remedy because the time to time information is being updated to them.
7.SWOT Analysis- This one is an important part of the strategic management process. This process emphasizes the strengths, weaknesses, opportunities, and threats. With this process, the organization able to gauge overall position and detect all flaws which are affecting or hampering their performances.
You can better understand with the help of the given diagram.
Hire strategic management accounting assignment example
Expert For Academic Success
Native Singapore Writers Team
- 100% Plagiarism-Free Essay
- Highest Satisfaction Rate
- Free Revision
- On-Time Delivery
Types of Strategies
By now, you must be wondering what are the types of strategies in strategic management
- Competitive Strategy
- Corporate Strategy
- Business Strategy
- Functional Strategy
- Operating strategy
5 Business Level Strategies
Though there are myriad types of business-level strategies, we will walk you through five prominent ones.
Let’s take a look
- 1.Cost Leadership
- Focused Differentiation
- 4.Focussed low-cost
- Integrated low-cost differentiation
Three Levels of Business Strategy
The three levels of strategy are as follows
- Corporate Level Strategy
- Business unit level strategy’
- Market level strategy.
So far, we can conclude that strategic management help businesses figure out what it is striving to attain and maps out the mandatory steps that need to be successful.
What are the 5 steps in Strategic Planning?
A strategic plan is a multi-step procedure in which one step is followed by the other.
Step 1 Write a vision statement
This describes what your business aims to achieve in the next 10, 20 or 30 Years.
Step 2: Writes a Mission statement
Step 3 Perform a GAP Analysis
Step 4 write smart Goals
Step 5 Monitor Progress
It is pertinent and crucial to review the progress once in a year. Most organization hesitates or frets to create a strategic plan because it intimidates them.
Does your organization have a strategic plan or not? If no, then must have one.
Key Take Away
Strategic Management is a management branch that is concerned with the formulation as well as the implementation of strategies that will assist the business to achieve desired goals and outcomes. It provides direction to the company for performing its function and helps in achieving a competitive edge in the market. It develops apt and concrete strategies. Strategic management plays a vital role in enriching the value of the business by keeping it ahead in the competition.