Needs of enterprise strategic management and strategic management accounting limitations of traditional management accounting. Strategic management accounting is the theoretical circles and substantive discussion on the topics of today. This article from the perspective of improving core competitiveness of enterprises, on strategic management accounting and Enterprise core competence and relevant content, and analysis of the relations between the two, noted that strategic management accounting for the cultivation of core competitiveness of enterprises and improve the provision of information support.
Strategic management accounting with the strengthening of global economic integration and socialization of information development, enterprise’s survival environment has undergone great changes. How to survive in the highly competitive market, and development, companies have increasingly concerned about the issue. Strategic management accounting adapted to the needs of enterprise strategic management, in order to maintain and enhance the core competitiveness of enterprises provides plenty of information, strategic management accounting has become the needs of enterprise strategic management decision support system.
First, the key elements of strategic management accounting
(A) provide information for strategic decision-making support. Strategy decisions and general decisions main difference is for market environment changes of importance and have long-term goals, concern in external markets customers and competitors information about strength and change trend. As in Beijing Olympics of huge business opportunities before, Korea business immediately began action, planning three large strategy, a is high-tech strategy, on China investment from past of traditional industry into tip core industry; II is local of strategy, change past to in in China local factory as simple production base of practices, into in local completed or production, and sales, and circulation, and then investment of full process; three is visibility strategy, in China expand about Olympics of various sponsored and promotions activities, improve enterprise in China of visibility.
(B) the strategic cost management. Strategic cost management. Cost management is an important part of management accounting. It is a neutral term to investment, research, development and design, manufacture and sale of Omni-directional control of the process. Strategic cost management is primarily effects from a strategic perspective to study all aspects of cost, so as to further identify ways of reducing costs. Jobs affect motivation, motivation affect the cost. Cost drivers can be divided into two categories: one is related to enterprise production cost driver; the other is related to strategic cost driver. Relative to the job cost driver, strategic cost driver to cost more. Therefore, from a strategic cost driver for cost management, enterprises can be avoided in future possible significant waste problems in the operation. In General, enterprises can use to take a moderate amount of investment in research and development strategies, market research, and rational approach to reducing strategy costs.
(C) business investment decisions. Strategic management accounting for the Enterprise Strategy Management provides a variety of relevant, reliable information. In the provision of business information relating to the investment decision process, to overcome the traditional management accounting there are deficiencies in the short term and simplistic, it should be to provide global and strategic vision of long-term and decisions related to the useful information. Strategic managing accounting in business decisions should abandon the establishment Division of variable cost and fixed mode of cost volume profit analysis based on using term volume profit analysis model. Strategic managing accounting based on realistic cash flow, more actual performance that reflects business investment, to enterprises focusing on sustained development provided useful information it.
(D) human resources management. Are important components of enterprise strategic management of human resources management, are also important elements of strategic management accounting. It includes personnel to increase corporate and individual performance of personnel management, as well as the annual strategic planning, day-to-day employee performance evaluation. Former principal is staff recruitment and staff training plan. Strategic management accounting is the core of people-oriented through certain methods and skills to motivate staff to maximize the value of human resources, and certain approaches to the recognition and measurement of human resources value and costs for human resources investment analysis.
II Basic, strategic management accounting methods
(A) the activity-based costing. Since the 80 ‘s, in order to adapt to the changing manufacturing environment, activity-based costing came into being. It is a job-based information processing system, based on resource cost for cost analysis of causality. That is, first the resources consumed by a job the cost assigned to the job, then by cost object the consumed cost of the operation of the job is assigned to an object. This is unlike the traditional cost calculation system overheads responsibilities under numerous defects, many previously uncontrollable indirect cost, activity-based costing system becomes controllable. At the same time, greatly expand the scope of the cost accounting activity based costing, improved cost allocation, provide a relatively accurate cost information in a timely, optimizes performance evaluation criteria.
(The II) analysis. Early warning analysis is a prior forecast may affect the financial condition of enterprise’s competitive footing and underlying factors, remind the authorities that methods of analysis. It through the industry and to analysis of the competitive situation, the management authorities to take preventive measures before the onset of the adverse circumstances, to resolve potential problems. Analysis of early warning analysis can be divided into external and internal analysis. External analysis focused on the enterprise market, market share; internal analysis focused on the mechanism of labor productivity, operational efficiency, stability is the staff, and so on.
(C) the quality cost analysis. Total quality management system is implemented, especially in the last 20 years, the establishment and use of computerized design and manufacturing system, have brought great changes in management concepts and management techniques, timely procurement and manufacturing system came into being. Under this system, in order to bring the product to zero defect, the enterprise attaches great importance to quality cost analysis. It focused on the quality cost of the four parts, namely, prevention costs, appraisal costs, quality of internal and external quality loss. Only a full picture of quality-related cost information, managers to make the correct quality cost estimates, as a means of changing the concept of current yield of light quality.
Third, the research objectives of strategic management accounting
() Balancing customer and Enterprise benefit. Strategic management accounting major from the customers ‘ benefit, business interests and the future of both hands and provide information for strategic management. Customer benefits include: improved product quality, reduce product cost and price, lifecycle, from product design, production and use on the all links that meet customer needs, and constantly develop the needs of the market products, paying attention to after-sales service, more flexible response mechanism to address customer needs. Business interests and the future include: customer demands that competitors ‘ strength, strategic cost management, cost management, long-term management of human resources investment analysis. Past of most IT manufacturers only focus on products and technology research and development, early after-sales service Shang is very less set foot in, Lenovo Group first do has large of market investigation, first seize this a opportunity, adjustment has own of strategy target, Enterprise gravity gradually to customer transfer, from simple of hardware products supplier to provides application and service supplier change, to “service custom” policy implementation customer oriented, IT industry entered has a to application service for leading of new era, won has customer also won profit and market.
(B) creating enterprise core competitive advantage. Strategy management accounting of important target one is create enterprise of competition advantage, and enterprise of competition advantage and established in relative cost comparison of Foundation zhixia, enterprise should breakthrough accounting main of limit, get about competition opponent of information, understanding relative cost, such as strategy management accounting in traditional budget prepared project of Foundation Shang increased has this enterprise and main competition opponent of comparison information, will competition opponent of spending and its faced of this volume Lee conditions reflect out. Compared traditional management accounting limitations in vision within one business, particular concern to strategic management accounting Enterprise external environment changes, focusing on collected information about competitors, understand its relative cost, enables business managers know the corresponding attack defense measures, by dominant relative costs and huge market share enabling enterprises maintain long-term relative competitive advantage. Strategic objectives of the strategic management accounting subject to enterprise, cannot ignore the business values and strategic objectives of non-financial. Strategic management accounting it is through the analysis of competitors, the use of monetary and non-monetary indicators, with the consistency of the overall strategic performance targets, add to a company’s long-term competitive advantage.
(A III) improve evaluation performance indicators. Traditional management accounting ignores the relative competitive position to get return on investment in the non-arrival of revaluation effect. Indeed sustainable and stable profit more from corporate market competitive position, this requires strategic thinking across the entire performance evaluation of management accounting, to pay competitive position change replacing traditional return index. Strategic management accounting should be subject to the strategic objectives of the enterprise, but cannot ignore the business values and strategic objectives of non-financial. Strategic management accounting it is through the analysis of competitors, the use of monetary and non-monetary indicators, with the consistency of the overall strategic performance targets, add to a company’s long-term competitive advantage.
Four, the relationship of strategic management accounting and Enterprise core competence
(A) strategic objectives determine the basis for cultivating enterprise’s core competitiveness
Compared with the traditional enterprises, development must be planned with the development of the modern enterprise, perspective and scientific, modern enterprise should therefore develop a certain development plan or strategy. Enterprise’s development strategy for enterprise in market positioning, product positioning within a certain period, resource integration of positioning, technology positioning, strategic positioning, only companies with a sound and scientific development strategy, and organize implementation, tuning and management of their development strategies, to ensure that the development strategy of the scientific, reasonable and practicable, to the cultivation of core competitiveness of enterprises with the most basic conditions. In addition, the strategic management accounting with dynamic strategic budget of existing and future resources available for allocation, coordination and integration within the enterprise of technology and skills, such as the core technical skills, management ability and market ability, which provided for the formation of core competence of valid elements.
(B) outward nature of strategic management accounting is to maintain conditions of core competitiveness of enterprises
Strategic management accounting not only focus on internal operations, always focus on the changing external environment, and external information feedback to management, which at any time in strategic objectives for the management, consolidating and developing core competence provides information support. Core competitive power of the most basic feature is its heterogeneity. If this core competence does not have the minimum characteristics, it is impossible to become a “core”. Under the market economy in economic globalization, enterprise market is no longer faced by a country or a region, but the globalization of markets, in heterogeneous seeking on the basis of “development”, from “development” perspective, through the constant development, Enterprise “technologies” to always advance in the frontiers of science, to become the “core”. Strategic management accounting aim at the market, look at “know others”, that is, fully understand the rival, enterprise strategy decision analysis techniques are applied to external competitors, suppliers and customers. Thereby can enable enterprises always leads, enhance core competitiveness for enterprises maintain and provides good safeguards.
(A III) strategic management accounting for enterprise core competitiveness cultivation and improvement provides information support
Comprehensive application of strategic management accounting on enterprise financial and non-financial indicators to evaluate performance and operation, can more accurately grasp the competitive environment for the cultivation of core competitiveness of enterprises and improve the provision of information support. In competition environment Xia, measure competition advantage of not only has financial indicators, also has large of non-financial indicators, many non-financial indicators despite cannot directly reflect enterprise of operating performance, but on enterprise of long-term development up with critical of role, non-financial indicators of using can more accurate of reflect enterprise in competition in the of status, and enterprise management of validity, and enterprise products of quality, and customer purchased trend and requirements, and supply relationship,. And traditional management accounting compared to, strategy management accounting can provides beyond enterprise itself of more widely, and more useful of information, especially about strategy financial information and operating performance information, and competition opponent information and and enterprise strategy related of background information, as market share, and and strategy cost about of data, and enterprise operating business, and enterprise assets of range and content, and industry structure on enterprise of effect, non-financial information. Strategic management accounting also places particular emphasis on all kinds of relative indicators and calculation and analysis of comparative indicators, such as relative prices, relative cost, relative and relative market share of cash flow, and so on, so that business managers do know thyself, take appropriate measures to maintain and enhance the competitiveness of enterprises.