高级管理会计学课件：lesson 1 Strategy

1、1Advanced Management Accounting(MA2)Course introductionAdvanced Management Accounting MA2 is the second of two courses in the management accounting stream in the CGA program of professional studies.Discussion : 1. What do you have learned in MA1 ( Management accounting fundamentals) 2. What will you

2、 study in MA2? Introduction4MA2 & MA1Management Accounting 2 MA2 is the final of two mandatory courses in the management accounting stream in the CGA program of professional studies.You should have master all the topics in MA1, especiallyCost behavior and CVP analysisVariable, absorption, and activi

3、ty-based costingRelevant costs for decision making Flexible budgetingIntroduction5General course aimsAcquiring conceptual understanding of the role of management accountant in providing information to support managerial decisionsBuilding up an ability to perform analyses relevant to specific manager

4、ial decisionsDeveloping an awareness of current issues in designing and implementing effective management control systemsCultivating the moral responsibilities of management accountants to their profession and to the managers they adviseIntroductionCourse syllabusLesson 1 Strategy Lesson 2 Corporate

5、 governance and ethical issues Lesson 3 Risk managementLesson 4 Organizational structure and interdivisional relationshipsLesson 5 Budget systems designLesson 6 Control mechanismsLesson 7 Performance measurementLesson 8 Performance evaluation and compensationLesson 9 Performance management and susta

6、inabilityIntroductionCourse materials1. Lesson Notes 2. Textbook (1) Kenneth Merchant , Management control systems: performance measurement, Evaluation and incentive, Third Edition (2) Robert N. Anthony , Management control systems, Twelfth Edition (3) Charles Horngren, Cost accounting, A Managerial

7、 Emphasis, Fifth Canadian Edition.IntroductionIntroduction目录第1章 管理控制系统的性质第一编 管理控制环境第2章 理解战略 第3章 组织行为 第4章 责任中心：收入和费用中心 第5章 利润中心 第6章 转移定价 第7章 评价与控制所运用的资产 第二编 管理控制过程 第8章 战略计划 第9章 预算编制第10章 财务业绩分析报告 第11章 业绩计量 第12章 管理层薪酬 第三编 管理控制变形 第13章 差异化战略的控制 第14章 服务型组织 第15章 跨国组织 第16章 项目管理控制 Introduction11Contents of t

8、he MA2Strategy (Chapter 1)Corporate governance and ethical issues( Chapter 13,14,15) Risk managementOrganization structure and interdivision relationships (Chapter 3,7 )Budget systems design (Chapter 8, 12) Control mechanisms ( Chapter 2,3, 4) Performance measurement ( Chapter 10,11) Performance eva

9、luation and compensation (Chapter 9, 10, 12) 9. Performance management and sustainability Introduction1213Study method for MA2Preview before the classScanning the Lesson notes and required readingParticipate in class activelyTry to mastery all key points in classes.After classDo the assignmentsDiscu

10、ss with your classmates, or teacher.IntroductionCourse RequirementsYou are required to prepare for every class, to efficiently finish homework, and to ethically participate final exam. Accordingly, your grade for this course will be determined as follows: 1.Class participation, questions for class d

11、iscussion, Assignments 20% 2. Final exam 80%Introduction15Contact with Me Email : Telephone:ntroduction16Strategy Lesson 117Introduction of lesson 1Overview of strategyOutline the strategic management processOverview of the role of management accounting in creating and evaluating corpor

12、ate strategy. 18Lesson 1 Topics outlineWhat is strategy? (1.1) Strategic leadership (1.2) Developing strategy (1.3 ;1.5) Implementing strategy (1.6; 1.7)Importance of strategic financial management (1.4)Role of the management accountant in implementing strategy (1.8)Quality of management decision ma

13、king (1.9)19Topic 1: What is strategy?Learning objectiveDefine the term “strategy,” and Identify factors managers consider when developing strategy. (Level 1)Required readingSelected reading , Anthony : Chapter 2Historical Description ofManagement Accounting1880 - 1925Most of the product-costing and

14、 internal accounting procedures used in the last century were developed.1925-1950Emphasis of accounting information for internal management. Management accounting practices developed, including: Flexible budgeting, Standard costs, Variance analysis, transfer prices et al.1950-1980The first managemen

15、t accounting revolution. Emphasis on the decision-making role ,and the mathematics of management accounting.1980- The Second management accounting revolution .Significant efforts have been made to radically change the nature and practice of management accounting. Emphasis on strategy Topic 1: What i

16、s strategy?Just-in-time productionTotal quality managementProcess reengineeringTheory of constraintsInternational competitionE-commerceBusiness environment changes in the past twenty years The Changing Business EnvironmentTopic 1: What is strategy?CURRENT FOCUSNeed for innovation and relevant produc

17、es:Activity-based managementABC Improves accuracy of assigning costsCustomer orientationStrategic positioning to maintain competitive advantageValue chain framework to focus on customer valueTotal quality management emphasized continuous improvementTime becomes a competitive advantage for the firm w

18、ho compress the value chainStrategic managementTopic 1: What is strategy?23Strategic managementStrategyStrategy can be defined the long range planning developed and carried out by an organization to achieve its corporate goals and objectives. Goals describe the broad overall aims of the organization

19、 .Objectives describe specific steps to accomplish the goals within a given timeframe.Strategic managementis the process a company uses to match its core competencies with industry opportunities in order to have a competitive advantage and accomplish its overall objectives. Topic 1: What is strategy

20、?Successful Strategy = Competitive AdvantageA strategy is implemented to create a competitive advantage over other companiesA company is said to have a competitive advantage when its profitability is greater than the average profitability for all firms in the industry A competitive advantage is cons

21、idered sustained when it is maintained for several yearsTwo Strategy LevelsCorporate-level Strategy (Companywide)Refers to the selection and management of a mix of businesses that compete in several industries or product markets .Business-level Strategy (Competitive)Is an integrated and coordinated

22、set of commitments and actions that the firm uses to create and gain a competitive advantage by exploiting core competencies in specific product markets.The former is focused on where to compete; then latter is concerned with how to compete.Topic 1: What is strategy?What is Strategy?Topic 1: What is

23、 strategy?28Corporate StrategiesCorporate strategy: Address the question: “What is the appropriate scale and scope of the enterprise?”Maintenance strategies: 稳定型战略 Development strategies: 成长型战略一体化战略（integration strategies）密集型战略（intensive strategies）多元化战略（diversification strategies）Defense Strategies

24、 ：收缩型战略Withdrawal strategies ：清算型战略Topic 1: What is strategy?案例 安利是美国最大的著名直销企业，总公司位于美国密歇根州大急流市亚达城，1959 年，成立于杰.温安洛先生和理查.狄维士先生在家中的地下室。创立之初，公司的产品也仅有一种乐新多用途浓缩清洁剂，但这款产品却是当时市场上率先采用具有生物可降解性表面活性剂的洗涤剂，第一年的营业额达到了50万美元。1963年，安利在美国境外的首家分公司加拿大安利分公司诞生，1971年5月，安利在北美以外的首家分公司在澳大利亚正式创立，这标志着安利已开始跻身国际跨国公司的行列。美国安利亚太区公司，

25、现在已拥有安利产品在澳大利亚、香港、澳门、马来西亚、新西兰、台湾、泰国、文莱以及中国的独家代理权。1972年，由世界维生素工业之父卡尔宏邦于1934年创立的纽崔莱被收购于安利旗下。安利(中国)于1992年成立并开始投资建厂，1995年4月10日正式开业。1997年， 旗下的纽崔莱成为世界上最大的维生素与矿物质营养补充食品品牌之一。1998年7月21日，经国家对外贸易经济合作部、国家工商行政管理局、国家国内贸 易局批准，安利(中国)根据中国市场特点，结合中国市场环境，以开设店铺并雇佣推销员的方式成功转型经营。2006年12月1日，安利(中国)正式拿到直销牌照，这意味着安利公司在未来的几年将是全力

26、腾飞的时期。2007年，安利公司实现了80亿元的销售额。2008年，安利公司首次推出未来四年的战略目标，预计到2012年，安利公司全球销售收入超过120亿美元!刚聘用原可口可乐一女性CEO加入安利全球管理层，她表示公司将推行强有力的战略措施，实现120亿美元的目标。安利公司目前销售纽崔莱营养保健食品、雅姿美容化妆品、个人护理用品、家居耐用 品四大系列，在广州建有先进的大型生产基地。安利在它的业务经营中同时兼任生产及销售商。安利采用直销的经营模式，产品从工厂生产出来，经过经销商、直销员或者专卖 店，直接到客户手中，减少中间的流通环节，并保证其售前、售中、售后服务，让客户可以得到更好的服务。案例讨

27、论说明安利公司在发展过程中采用哪些战略;.多元化战略。安利公司从一开始只是生产清洁剂，到现在主营日用消费品，涵盖了纽崔莱营养保健食品、雅姿美容化妆品、个人护理用品、家居护理用品和家居耐用品等系列产品，说明采用的是相关多元化战略。一体化战略，因为安利公司在它的业务经营中同时兼任生产商及销售商，所以它采用的是一体化战略。The Trend Over Time: Diversified Companies among the Fortune 500Percentage of Specialized Companies (single-business, vertically-integrated a

28、nd dominant-business)Percentage of Diversified Companies (related-business and unrelated business)BUT Since late 1970s, diversification has declined.1949 1954 1959 1964 1969 1974 70.2 63.5 53.7 53.9 39.9 37.029.8 36.5 46.3 46.1 60.1 63.0Motives for DiversificationGROWTH -The desire to escape stagnan

29、t or declining industries has been one of the most powerful motives for diversification (tobacco, oil, defense). -But, growth satisfies management not shareholder goals.-Growth strategies (esp. by acquisition), tend to destroy shareholder valueRISK -Diversification reduces variance of profit flowsSP

30、READING -But, does not normally create value for shareholders, since shareholders can hold diversified portfolios. -Capital Asset Pricing Model shows that diversification lowers unsystematic risk not systematic risk.PROFIT -For diversification to create shareholder value, the act of bringing differe

31、nt businesses under common owner- ship must somehow increase their profitability.Diversification and Performance: Empirical EvidenceDiversification trends have been driven by beliefs rather than evidence:- 1960s and 70s diversification believed to be profitable; 1980s and 90s diversification seen as

32、 value destroying.Empirical evidence inconclusive- no consistent findings on impact of diversification on profitability, or on related vs. unrelated diversification.Some evidence that high levels of diversification detrimental to profitabilityDiversifying acquisitions, on average, destroy share- hol

33、der value for acquirersRefocusing generates positive shareholder returns 1 2 3 4 5 6 index of product diversity321return on net assets (%)Corporate-Level StrategyCorporate-level Strategys Key questions:What businesses should the firm be in?How should the corporate office manage the group of business

34、es?Business UnitsTopic 1: What is strategy?Business portfolio analysisAssess the suitability of current business portfolio. Allocate resources according to the portfolio, finally reach the strategic goalsTools : BCG Matrix model , GE model Topic 1: What is strategy?BCG modelThe model was developed b

35、y the Boston Consulting Group in the early 1970s.The BCG model is based on classification of company business units ( or products) into four categories based on combinations of market growth and market share relative to the largest competitor.Topic 1: What is strategy?BCG MatrixAccording to The pote

36、ntial of the businesses: market growthThe position of the company in these businesses: market shareJudge The suitability of current business portfolioThe cash contribution of different businessesDecide the future portfolio and development strategyTopic 1: What is strategy?案例：IBM的PC产业 BCG的精华在于动态的观点。由

37、于产品生命周期变动的缘故，某些行业逐渐由问题行业长成为明星行业，而明星行业会随着产品生命周期的循环，成长率逐渐降低，进入成熟期，转化为金牛行业，等到了产品衰退期，产品开始没落，就有现金牛行业转为瘦狗行业。这正如IBM的PC产业，在80年代初时，由于它的刚出现，市场需求很大，因此IBM大力研发，使之成为明星产业；但随着时间的推移，越来越多的厂商都能进行大规模生产，虽然IBM占有70%的市场份额，但PC行业的增长率变得很低，逐年变为现金牛事业，到八十年代后期与整个九十年代，由于没有模仿障碍，毫无差异化，IBM创造了竞争者崛起的机会，这使得它在PC行业的市场占有率逐渐下降，伴随着PC部门极低的增长率

38、，PC行业基本无利可图，沦为了瘦狗行业。因此，果断处理掉PC部门绝对是一个明智之举。Critiques to BCG MatrixThe difficulty of defining market, market share and growth rateToo simple to label the status high or lowFocusing on the surface not the potential (innovation capability and so on)Topic 1: What is strategy?General ElectricPlanning Mode

39、l MatrixThe GE matrix is an alternative model developed in the 1970s.It introduces a three by three matrix, which now includes a medium category. Growth/share are replaced by market attractiveness/ competitive positionTopic 1: What is strategy?General ElectricPlanning Model MatrixFactors reflecting

40、industry attractivenessMarket growth rate, industry size and profitability. Such as market growth rate, industry size and profit, competition, technology, social environment and etc.Factors reflecting business competitive advantageMarket share, profit rate, competitiveness, technology, managementTop

41、ic 1: What is strategy?45Business-unit strategiesCost leadershipIntended to generated competitive advantage by achieving cost that lower than all competitors, Based on operational efficiencyDifferentiationBased on the ability to distinguish your product or service from competitors.focused or niche s

42、trategyThis is either a cost-leadership or differentiated strategy that focuses on a small subsection of the overall market or niche.Topic 1: What is strategy?Cost leadership strategy Low-cost competitive strategy Aimed at broad mass market Aggressive construction of efficient-scale facilities Cost

43、reduction Cost minimizationTopic 1: What is strategy?47Major Risks of Cost Leadership StrategyThere can only be one cost leaderTechnological change can eliminate cost advantageSpillovers lead to imitationEfficiency focus may create blind spots : customer preferencesTopic 1: What is strategy?Differen

44、tiation Strategy Broad mass market Unique product or service Charge premiums Lower customer sensitivity to priceTopic 1: What is strategy?49Pitfalls of Differentiation StrategiesDifferentiating on characteristics not valued by buyers (e.g., HP)Over-differentiating Price premium is too highFailing to

45、 signal valueFocusing on product instead of entire value chain50Focused Business-Level StrategiesA focus strategy must exploit a narrow targets differences from the balance of the industry by:isolating a particular buyer groupisolating a unique segment of a product lineconcentrating on a particular

46、geographic marketfinding their “niche”51Major Risks of Focused StrategiesFirm may be “outfocused” by competitorsLarge competitor may set its sights on your niche marketPreferences of niche market may change to match those of broad marketTypes of Business-Level StrategiesCostUniquenessDifferentiation

47、Cost LeadershipFocused DifferentiationFocused Cost LeadershipIntegrated Cost Leadership/ DifferentiationBroadTargetNarrowTargetCompetitive AdvantageCompetitiveScope10Topic 1: What is strategy?53Topic 2: Strategic leadershipLearning objectiveDescribe the importance of strategic leadership to an organ

48、ization. (Level 2)Required readingTextbook : Chapter 1 Page 8Leader VS. ManagerThere is a common saying：“manager do things right，leaders do the right thing.”DiscussionIs there a difference between them?Who is more important ？Analysis: leader: who decides what needs to be done. Manager: who focus on

49、how getting it doneThese questions have no one definite answer. Textbook P9:As Adrian Grace, managing director of Bank of Scotland, proffers :Success in business is 25% strategy but 75% execution.Strategic leadershipStrategic leadership is the ability to anticipate, envision, maintain flexibility, a

50、nd empower others to create strategic change as necessary.Effective strategic leadership is the foundation for successfully using the strategic management process:Topic 2: Strategic leadershipKey Strategic Leadership Actions Determining strategic direction (long-term vision) Exploiting and maintaini

51、ng core competencies, Developing human capital and social capital Sustaining an effective organizational culture Emphasizing ethical practice Establishing balanced organizational control (financial vs. strategic control)Topic 2: Strategic leadershipStrategic leaders functions 1. Manage the firms ope

52、rations effectively; 2. Sustain a high performance over time; 3. Make better decisions than their competitors; 4. Make courageous, pragmatic decisions; 5. Understand how their decisions affect the internal systems in use by the firm; and 6. Solicit feedback from peers, superiors and employees about

53、their decisions and visions. Topic 2: Strategic leadership61Topic 3: Developing strategyLearning objectiveDescribe the steps required to develop and manage strategy. (1.3)Describe various tools used in developing and assessing and organizations strategy (1.5)Required readingNo required readingTopic

54、3: Developing strategySteps in developing and managing strategyEnvironmental scanningStrategy formulationStrategy implementationStrategy evaluationTopic 3: Developing strategy64Environment scanningExternal scanning tools: PESTEL analysis Porters five forces analysisInternal scanning tools: Resources

55、 & Capabilities analysis Value chain analysis Topic 3: Developing strategyExternal environment Scanning Topic 3: Developing strategy67Macro-environmentIndustryMarketFirmExternal environment: Levels68Macro-environment: PESTEL frameworkPolitical (P)Government stabilityTaxation policyTrade regulationSo

56、cial (S)DemographicsLifestyle changesSocial trendsEducation levelsConsumerismEnvironmental (E)Environmental regulationWaste managementEnergy issuesEconomical ()GNP trendsInflationUnemploymentTechnological (T)Rate of technological changesTechnology transfer policyGovernment and industry spending on r

57、esearch and developmentLegal (L)Employment LawsHealth and safety69The macro-environment affects the industry environment which affects the firmR. Grant, Contemporary Strategy Analysis, 2000 From macro-environment to industry analysisNational/ International EconomyTechnologyGovernmentNatural environm

58、entSocial & demographical structureFirmIndustryenvironmentPorters Five Forces of Competition FrameworkSUPPLIERSPOTENTIALENTRANTSSUBSTITUTESBUYERSINDUSTRYCOMPETITORSRivalry amongexisting firmsBargaining power of suppliersBargaining power of buyersThreat ofnew entrantsThreat ofsubstitutesTopic 3: Deve

59、loping strategyTHREAT OF ENTRYCapital requirementsEconomies of scaleAbsolute cost advantageProduct differentiationAccess to distribution channelsLegal/ regulatory barriersRetaliationSUBSTITUTECOMPETITION Buyers propensity to substitute Relative prices & performance of substitutesBUYER POWER Buyers p

60、rice sensitivity Relative bargaining powerINDUSTRY RIVALRYConcentrationDiversity of competitorsProduct differentiationExcess capacity & exit barriersCost conditionsSUPPLIER POWER Buyers price sensitivity Relative bargaining power The Structural Determinants of CompetitionTopic 3: Developing strategy