Strategy and Management Accounting provides comprehensive coverage of the standard strategy models and frameworks and strategic management accounting techniques. It includes hints for active reading, links to explanatory videos, learning activities, review questions and activities linked to a case study to apply the learning.
The learning resource is useful for undergraduate study. The discussion of management accounting techniques is grounded in the academic research making it suitable for postgraduate study including postgraduate courses where students may have limited knowledge of accounting, e.g. management accounting modules on an MBA course.
The book covers the standard strategy models and strategic management accounting techniques within the context of a strategic management framework. A rational framework is adopted to illustrate how management accounting can aid the strategic management process. The management accounting techniques are discussed at appropriate points. It does not, however, preclude techniques from being used elsewhere to support strategic management
This chapter covers the development of strategic management accounting and strategic management. A strategic management framework is outlined that forms the structure for the book.
Management accounting support is discussed in the context of strategy as practice.
This chapter covers the concepts of vision and mission and discusses strategic typologies and how they influence management accounting.
This chapter covers PESTEL and Porter's five forces models and gives examples of how management accounting supports the analysis. Competitor analysis is also covered.
The business ecosystem and scenario planning are discussed in some detail.
This chapter includes discussion of the 9Ms framework, product life cycle, portfolio analysis (BCG matrix), The discussion highlights the management accounting support for managing the product life cycle and product portfolios.
Customer profitability analysis is covered in depth. The value creation system is explained along with supplier analysis. Financial analysis is covered briefly, but points to a more detailed explanation of ratio analysis provided in appendix B.
Chapter 5 includes SWOT and Gap analysis.
Chapter 6 includes competitive strategies, and pricing strategies. In support of cost leadership and differentiation the techniques of activity-based costing, lean accounting and the cost of quality are discussed.
Chapter 7 includes strategies for growth based around market penetration, product and market development and diversification. Product development provide the opportunity for an extensive discussion of target costing and life cycle costing. Market development into international markets includes an outline of the elements from Porter's competitive advantage of nations. The methods of growth organic, M & A, and joint development is also covered.
Chapter 8 includes stakeholder analysis, investment appraisal including real options and a discussion of risk management.
Chapter 9 covers budgets, beyond budgeting, change and tailoring the reporting of management information to the strategy. Chapter 10 includes the balanced scorecard, service sector performance, divisional performance, economic value added, transfer pricing, benchmarking and behavioral aspects of performance management.
Chapter 11 covers definitions of sustainability and sustainable development and the development of a sustainable balanced scorecard. A discussion of the concept of environmental management accounting is included. The chapter concludes with a discussion of the factors influencing the ability of management accountants to become involved in the strategic management process.
Appendix A contains the background to the HW Inc. case study that is used throughout the book. Activities are included within each chapter. However, the activities have been collected together within a question bank so that the case, questions and solutions can be downloaded separately.
Appendix B includes cost-volume-profit analysis, basic product mix decisions, flexible budgets, cash budgets and financial ratio analysis. The techniques provide support for students who have not studied management accounting before.