CIMA defines strategic management accounting as :
‘A form of management accounting in which emphasis is placed on information which relates to factors external to the firm as well as non-financial information …’ (Drury 7th Edition page 570)
Strategic management accounting thus looks beyond cost measurement to focusing on ways to achieve cost reduction and hence strategic advantage for organisations. Many such techniques are outward looking to measure performance against competitors and also encompass wider measures of customer satisfaction, innovation etc. which take a much wider view of those attributes that will lead to success.
You are required to explain the wider implications of the techniques below rather than merely explaining what they are i.e. it is not sufficient to just explain the concepts but also how they can be effectively used by an organisation.
You are required to work in groups of 3 or 4 people from your class. You will be given one combination of companies from the matrix below to study three of the companies listed below:
|Retail: |Manufacturing: |Service / Other : | |1) Next | 9) Rio Tinto |17) National Grid | |2) Kingfisher |10) GKN |18) Severn Trent | |3) Burberry |11) Imperial Tobacco |19) Barclays | |4) Morrison (Wm) |12) GlaxoSmithKline |20) Ryan Air | |5) Marks & Spencer |13) Apple
|21) Capita Group | |6) Walmart |14) BP |22) Holiday Inn | |7) Vodafone Group |15) Bunzl |23) Maersk | |8) Harrods |16) De La Rue |24) Aviva |
It is intended that no two groups will be allowed the same combination of companies. Once you have formed your group you will be allocated three of the above companies.
You are recommended to research your information from company published accounts, web sites, textbooks, journals, financial press and other reputable sources.
Please remember NOT to devote much time actually explaining what each of your companies does – the idea is that you consider the sectors in which they operate having researched them to choose appropriate Balanced Scorecard measures etc. and to evaluate their success or failure in the market place.
a) The Balanced Scorecard attempts to overcome many of the limitations of traditional management accounting. Explain the purpose of the Balanced Scorecard. (5 marks)
b) Outline the four perspectives of the Balanced Scorecard and how they can help to improve a company’s performance. (10 marks)
c) Suggest possible (or actual) Scorecard measures under each of the four headings identified in (b) above that could sensibly be applied to each of your three companies. You need Scorecard measures for all three of your
companies and explain why you choose them. (45 marks)
d) Compare and contrast the differences in problems faced by all of your respective companies considering the sectors in which they are operating. Comment on whether you think they have been more or less successful than their main competitors. (30 marks)
e) Presentation and layout，disc, overall quality, originality, references, and bibliography. (10 marks)
Total 100 marks
Late submissions will be dealt with by the University regulations there will be no extension to the above deadline.
You need to submit your work to the Room B809 by Friday 22nd March 2013 before 5:00pm otherwise a 5% of total marks will be taken for each day you delayed.
If evidence of plagiarism is observed your work will be referred to Academic Registry and you risk receiving ZERO marks or having to repeat the module.