p.4
Value Creation in Organizations
What does the organizational value chain illustrate?
A sequence of activities performed by the organization to create customer value.
p.8
Role of Management Accountants
What factors supported the planning phase for Alpha's sales target?
Previous sales figures, consumer confidence, and required profit targets.
p.6
Role of Management Accountants
What are the two broad categories of management activities?
Strategic management and operational management.
p.7
Operational Management vs. Strategic Management
What is essential for an organization to achieve short-term plans?
Constant feedback and adjustments to objectives if there is a deviation from the plan.
p.1
Analytical Techniques in Strategic Management
What does the module conclude with regarding management accountants?
An examination of various analytical techniques available to assist them in supporting management decisions about strategic direction.
p.8
Operational Management vs. Strategic Management
What orientation is required for strategic management?
High-level strategic management orientation.
p.6
Strategic Management Process
What does the strategic management accounting process involve?
Defining the organisation’s strategy and choosing a set of strategies for value creation.
p.2
Strategic Management Process
What is the importance of feedback from the operational level?
It serves as a control mechanism to ensure alignment with the organization’s vision and mission.
p.5
Stakeholder Perspectives on Value
What is a potential consequence of massive price discounting by supermarkets?
A small price reduction for consumers at the expense of producers who may become unviable.
p.5
Analytical Techniques in Strategic Management
How does strategic management accounting support the strategic management process?
By using a wide range of tools and techniques that assist each stage of the process.
p.4
Value Creation in Organizations
What is the primary task of an organization regarding customer value?
To create an output that has customer value at a cost lower than the price the customer is willing to pay.
p.2
Operational Management vs. Strategic Management
Why is continuous review and improvement important in organizations?
To ensure activities and processes align with goals and adapt to changes.
p.7
Analytical Techniques in Strategic Management
What is the purpose of SWOT analysis in organizations?
To scan the organizational environment both externally and internally.
p.7
Operational Management vs. Strategic Management
How did Amazon innovate its supply chain management?
By investing in supply chain automation and increasing the number of warehouses.
p.7
Role of Management Accountants
What role do management accountants play in operational planning?
They provide feedback with financial and non-financial information to support controlling functions.
p.1
Value Creation in Organizations
What is meant by organizations being viewed as 'linked chains'?
They are seen as chains of resources and activities that produce products and services of value to consumers.
p.4
Stakeholder Perspectives on Value
What is essential for achieving long-term sustainable shareholder value?
Acknowledging and minimizing the impact on the natural environment.
p.6
Strategic Management Process
How is the strategic management process characterized?
As a continuous process that evaluates the business environment, competitors, and defines objectives and strategy.
p.5
Stakeholder Perspectives on Value
What societal issues can arise from switching production to cheaper offshore locations?
Local unemployment, environmental degradation, and increased injuries among poorly protected employees.
p.3
Value Creation in Organizations
How does value creation differ in the not-for-profit and public sectors?
Value is created for members, citizens, or residents instead of increasing wealth for shareholders.
p.1
Value Creation in Organizations
What are the essential requirements for successful performance in organizations?
To generate products and services with value that consumers are willing to pay for and to constantly develop resources, activities, and processes.
p.6
Strategic Management Process
What is the main theme of Part B of the module?
To explain the strategic management process and the role of strategic management accounting in supporting managers.
p.5
Operational Management vs. Strategic Management
How does strategic management differ from traditional accounting?
Strategic management accounting evaluates external information, while traditional accounting focuses on internal information.
p.3
Value Creation in Organizations
How is value typically described in organizations?
As increasing shareholder wealth.
p.7
Challenges Facing Management Accountants
What is the relationship between senior strategic managers and operational managers?
Senior managers focus on strategic tasks while operational managers focus on medium- to short-term tasks.
p.3
Value Creation in Organizations
What is the ultimate outcome for many organizations?
To generate wealth for the owners.
p.1
Introduction to Strategic Management Accounting
What is the definition of strategic management accounting provided in the module?
Creating sustainable value by supporting the formation, selection, implementation, and evaluation of organizational strategy.
p.2
Strategic Management Process
What is involved in a strategic management process?
It includes various stages that help organizations create value and achieve goals.
p.2
Strategy Planning and Implementation
How should day-to-day activities be linked in an organization?
They must be linked to the organization’s overall strategy to drive desired outcomes.
p.4
Stakeholder Perspectives on Value
What does corporate social responsibility (CSR) indicate about value?
People are interested in how economic value is created and its impact on society and the environment.
p.5
Stakeholder Perspectives on Value
What social issues can arise from selling addictive products?
Increased health-related costs and social issues in communities.
p.5
Value Creation in Organizations
What is the ultimate goal of strategic management accounting?
To help organizations create long-term, sustainable value for all stakeholders.
p.1
Role of Management Accountants
What is the primary focus of strategic management accounting?
Creating, managing, and protecting value for multiple stakeholders.
p.2
Value Creation in Organizations
What is necessary for value creation in organizations?
A clear strategy based on a vision and mission that effectively utilizes resources.
p.4
Stakeholder Perspectives on Value
Why is consideration of stakeholders critical to organizational success?
Because organizations require community permission, infrastructure, customers, and employees who need adequate wages and conditions.
p.5
Stakeholder Perspectives on Value
What are some impacts of cost-cutting measures like reducing staff?
Unemployment, financial pressure on communities, and additional stress for remaining employees.
p.6
Role of Management Accountants
What is the role of strategic management accounting?
To support managers in both strategic and operational management.
p.6
Strategic Analysis Techniques
What is the first step in the strategic management process?
Strategic analysis through scanning the internal and external environment.
p.1
Analytical Techniques in Strategic Management
How has technology impacted the role of management accountants?
It allows them to capture and process routine events, enabling more focus on understanding the external environment and complex decisions.
p.8
Operational Management vs. Strategic Management
What is the primary focus of strategic management?
Directly linked to the survival of an organization.
p.8
Operational Management vs. Strategic Management
What does operational management focus on?
Tactical management orientation and achieving operational excellence.
p.8
Role of Management Accountants
What caused the increase in production costs for Alpha's toy?
Raw material price increases due to unfavorable foreign exchange fluctuations.
p.3
Value Creation in Organizations
What are some examples of value creation mentioned in the text?
Growing food, generating energy, providing health care, and building infrastructure.
p.3
Value Creation in Organizations
What was the basis of value creation in the past?
Economies of scale and mass production.
p.2
Role of Management Accountants
What role does management accounting play in strategic management?
It helps in transitioning from a management accountant to a competent business partner.
p.4
Stakeholder Perspectives on Value
How is shareholder wealth generated according to the text?
As a by-product of generating value in other areas.
p.4
Strategic Management Process
What is the relationship between a business model and value creation?
Value is created or destroyed by management through the business model, which depends on relationships and activities in the market and societal context.
p.5
Strategic Management Process
What does the strategic management process involve?
Deciding the direction, industry, products/services, structure, goals, and objectives of an organization.
p.3
Challenges Facing Management Accountants
Why is the pursuit of shareholder value alone not sustainable?
It ignores other areas of value creation.
p.1
Challenges Facing Management Accountants
What new skills must management accountants embrace?
Skills that extend beyond traditional practices, including collaboration with general management and corporate strategists.
p.2
Challenges Facing Management Accountants
What are some key challenges facing management accountants today?
Challenges include adapting to changes in the business environment and maintaining relevance.
p.5
Role of Management Accountants
What is the primary aim of strategic management accounting?
To improve organisational outcomes by providing forward-looking information for decision-making.
p.3
Role of Management Accountants
What role do management accountants play in organizations?
They support management in creating, managing, and protecting value.
p.3
Stakeholder Perspectives on Value
Why is focusing solely on shareholder wealth considered narrow?
It ignores other important stakeholders and their interests.
p.3
Value Creation in Organizations
What is a key aspect of value creation in contemporary organizations?
Creativity and innovation.
p.8
Operational Management vs. Strategic Management
How does operational management influence organizational survival?
It indirectly influences organizational survival.
p.4
Value Creation in Organizations
What are some support activities in the organizational value chain?
Research and development, accounting, human resources, information technology, and infrastructure.
p.2
Strategic Analysis Techniques
What influences must organizations monitor in their external environment?
Competitor activity, economic conditions, technological advancements, and social changes.
p.6
Strategic Management Process
What are the key issues addressed in the strategic management process?
Determining the vision, mission, and purpose of an organisation, and setting specific objectives.
p.6
Strategic Management Process
Why is significant information required in the strategic management process?
To successfully complete each of the stages and improve effectiveness.
p.7
Strategic Analysis Techniques
Why must organizations continuously analyze the external environment?
To understand trends and changes that affect the industry and the economy.
p.4
Value Creation in Organizations
What philosophical issue must be considered when determining value?
From which perspective should value be determined?
p.6
Strategic Management Process
What is the focus of strategic management?
Determining the direction and structure of the organisation and developing plans and objectives.
p.6
Strategic Management Process
What are the important phases in the strategic management process?
Strategic analysis, strategy planning and choice, strategy implementation, and strategy evaluation.
p.1
Challenges Facing Management Accountants
What challenges do management accountants face in contemporary organizations?
The need to support managers at a strategic level and broaden their role from traditional scorekeeping to business advisory positions.
