Mas 1
refer to the function of providing professional advisory or consulting services The primary purpose of which is to improve the client's use of its capabilities and resources to achieve the objectives of the organization
MANAGEMENT ADVISORY SERVICES
also known as overall or strategic planning at encompasses the long range objectives and policies or organization and is concerned with corporate results rather than sectional objectives
top level planning
focuses on how to attain and satisfy customers offer goods and services that meet their needs and increase operating profits
business level strategy
when a business makes a decision that affects the whole company
corporate level strategy
the long range limit of planning of top level planning
5 years
what are the basic functions of management
PLANNING, ORGANIZING, STAFFING, DIRECTING, CONTROLLING
forecasting methods, thinking process, short and long-term planning, it deals with choking out a future course of action and deciding in advance the most appropriate course of actions for achievement of predetermined goals
planning
look for resources and manpower needed, laying down of the plan, it is the process of bringing together physical, financial and human resources and developing productive relationship amongst them for achievement of organizational goals.
organizing
hiring of needed people now and in the future, training, function of the manning the organization structure and keeping it manned
staffing
telling them what to do on a daily basis, motivating and rewarding, it is the part of managerial function which actuates the organizational methods to work efficiently for achievement of organizational purposes.
directing
evaluate based on desired outcome, communicate the evaluation, implies measurement of accomplishment against the standards and correction of deviation if any to ensure achievement of organizational goals
controlling
four function of directing
supervision, motivation, leadership, communications
This means inspiring stimulating or encouraging the subordinates with zeal to work
motivation
it implies overseeing the work of subordinates by their superiors it is the act of watching and directing work and workers
supervision
maybe defined as a process by which manager guides and influences the work of subordinates in desired direction
leadership
The process of passing information, experience, opinion from one person to another
communications
what are the characteristics of objectives (as basis of performance evaluation)
SPECIFIC MEASURABLE ATTAINABLE REALISTIC TIME BOUND
financial or managerial accounting
external users
mandatory
financial accounting
financial or managerial accounting
strong emphasis on the future
data should be relevant
managerial accounting
financial or managerial accounting
data should be objective and verifiable
focuses on precision
financial accounting
it does not conform with reporting standards
focuses on segments of a company
managerial accounting
must conform with reporting standards
summarizes past transactions
financial accounting
financial vs cost accounting
-it assist external users with business decisions centering on a variety of issues suggest sale of stock issuance of loans etc.
financial accounting
it has an internal focus it identifies collects measures classifies and reports information that is used by managers for costing purposes planning controlling and decision making
cost accounting
cost accounting vs managerial accounting
it attends to satisfy costing objectives for both financial and management accounting
cost accounting
managerial vs cost counting
concerned specifically with how cost information and other financial and non-financial information should be used for planning controlling and decision making
managerial accounting
controller or treasurer
evaluating and consulting
controller
controller or treasure
reporting and interpreting
controller
controller or treasurer
planning and control
controller
controller or treasurer
government reporting
controller
controller or treasurer
protection of assets
controller
controller or treasurer
tax administration
controller
controller or treasure
economic appraisals
controller
controller or treasure
provision of capital
treasurer
controller or treasurer
investor relation
controller or treasure
short term financing
treasurer
controller or treasurer
banking and custody
treasurer
controller or treasurer
credits and collection
treasurer
controller or treasurer
investments- capital budgeting
treasurer
controller or treasure
insurance-risk management
treasurer
this role involves money or cash/ financial management
treasurer
This role is accounting related, does not involve cash collection
controller
this position is responsible in attaining the specific objectives, those that have the responsibility and authority for achieving the major goals of the corporation. typically these schools are targets for revenues and profits.
employees are those directly involved in the daily operations of a business by selling or producing a product or service
line positions
to provide assistance and specialized advice and expertise to colleagues in line positions.
staff positions
key to a company success in creating value for customers while differentiating itself from its competitors
strategic decisions
five stages of strategic decision process
1 clarify your vision
2 gather and analyze information
3 formulate a strategy
4 implement your strategy
5 evaluate and control
defines the company's business, it's objectives and its approach to reach those objectives
mission statement
describes the desired future position of the company
vision statement
what are Michael porters three generic strategies
the cost leadership strategy
The differentiation strategy
The focus is strategy
Miss Michael Porter strategy is increasing profits by reducing costs while charging industry average prices
affordable; high quality
The cost leadership strategy
Michael Porter strategy where in it involves making your products or services different from and more attractive than those of your competitors
unique; higher price
the differentiation strategy
Michael Porter strategy were in companies that use this concentrate on particular niche markets and they understanding the dynamics of that market and the unique needs of customers
The focus strategy
midrange/ low end consumer
focus on cost leadership
high-end markets
focus on differentiation
matching knowledge of marketplace opportunities and threats with companies resources and capabilities (feet with chosen competitive edge)
strategic analysis
balance sheet information about assets
these are indented to give management an idea of the company's liquidity. This area will be fully discussed in financial management.
i. cash adequacy
ii. inventory management
cash resources
balance sheet information about assets
important strategic decisions for the right investments. long-term assets are needed to support operating activities to sustain long-term profitability. these are capital goods needed to produce the financial product or services offered by the company
i. annalize trends and measure efficiencies
ii. develop network of relationships with customers and suppliers
iii. identify financial in non-financial costs and benefits associated with alternative choices
long-term productive assets
these are assets that black physical attributes or existence but generate cash flows for the company
intangible assets
The three balance sheet information about assets
current resources
long-term productive assets
intangible assets
This is the five forces model that can help businesses boost profits but they must continuously monitor any changes in the five forces and adjust their business strategy.
Michael Porter's five competitive forces
Michael Porter's 5 competitive forces
competition in the industry
potential of new entrance into an industry
power of suppliers
power of customers
threat of substitutes
MP5F
number of competitors and their ability to offer goods or services at a lower price than the company
competition in the industry
MP5F
The less time and money it cost for competitor to enter a company's market and be an effective competitor the more an established companies position could be significantly weakened
potential of new entrance into an industry
MP5F
affected by the number of suppliers of key inputs of a good or service how unique this inputs are and how much it would cost a bonito switch to another supplier
power of suppliers
it is affected by how many buyers or customers a company has how significant each customer is and how much it would cost the company to find new customers or markets for its output
power of customers
substitute goods or services that can be used in place of a company's products or services pose a threat
threat of substitutes
a planning tool that uses graphical representations of a company's products and services in an effort to help the company decide what it should keep sell or invest more in
The Boston consulting group growth share matrix
four quadrants of BCG growth share matrix
dogs or pets, cash cows, stars, question marks
if a company's product has a low market share and is a low rate of growth
dogs or pets
low growth large market share
cash cows
products that are in high growth markets and that make up a sizable portion of that market which generate high income but also consume large amounts of company cash.
stars
questionable opportunities are those in high growth rate markets but in which the company does not maintain a large market share
question marks
too much competitors; potential profit is lower
Red Ocean market
competition in the industry, young or newly created market it said standards; higher profitability
Blue Ocean market
set standards
compete directly
low end
specialized
market leader
Challenger
follower
nicher
types of market according to economics
pure competition
Monopoly
oligopoly
monopolistic competition
management accountants role in implementing strategy
-Implementing strategy
-Supporting managers by providing information to improve strategic planning and control decision
-enhancing the value of management accounting systems by guiding managers to focus on challenges
three parts of implementing strategy
1. planning
a. thinking process
i.) selecting organization goals
ii) predicting results under various alternatives of achieving these goals
iii) deciding how to attain desired goods
b. communicating goals and how to obtain them to entire organization
goal congruence (individual->department-> company)
2. control
3. feedback
-linking planning and control to help future decision making (actual versus plan)
three rolls of management accountants for success
problem solving |
score keeping | ] control
attention directing |
goals to assist managers in making better decisions
a) different decisions emphasize roles differently
i. strategy and planning -problem solving
ii. control - score keeping and attention directing
b) interaction among types of decisions means activity or roles done simultaneously
c) information must be relevant in timely to be useful
enhancing the value of management accounting systems by guiding managers to focus on challenges
1 customer focus
2 value chain and supply chain analysis
3 key success factors
4 continuous improvement and benchmarking
companies add value through (value chain)
research and development
design of product services or processes
production
marketing
distribution
customer service
key success factors
cost and efficiency
quality
time
innovation
what are the four overarching principles
honesty fairness objectivity responsibility
standards
integrity
confidentiality
credibility
competence