What Is Strategic Management Accounting?

Strategic management accounting refers to assisting senior leaders to formulate competitive strategies and implement strategic planning, so as to promote the virtuous circle and continuous development of the company. It can analyze and think from a strategic perspective, and provide customers and competitors with strategic relevance and outward This type of information also provides internal information related to the strategy of the enterprise, and serves as an accounting branch of corporate strategic management.

Strategic Management Accounting

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Strategic management accounting refers to assisting senior leaders to formulate competitive strategies and implement strategic planning, so as to promote the virtuous circle and continuous development of the company. It can analyze and think from a strategic perspective, and provide customers and competitors with strategic relevance and outward This type of information also provides internal information related to the strategy of the enterprise, and serves as an accounting branch of corporate strategic management.

With the rapid development of modern science and technology and the increasingly fierce global competition, modern enterprises need not only scientific and sophisticated daily management, but also a visionary and strategic vision. For adaptation

Compared with traditional management accounting, strategic management accounting has the following characteristics:

1. Strategic management accounting provides more

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Strategic management accounting method system refers to an organic whole composed of various methods of strategic management accounting. The various methods in this system influence and interact with each other, which can make the information provided by strategic management accounting more complete and efficient. Therefore, establishing a scientific strategic management accounting method system is an important content of strategic management accounting.

Construction of strategic management accounting method system

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Based on a review of the current status of strategic management accounting methods,

Strategic management accounting is an emerging research field in foreign countries. Its complete theoretical and methodological system has not yet been established, and domestic research has just begun. From the perspective of the development process and characteristics of strategic management accounting, the strategic management accounting system is developed around strategic management and should include four aspects:

1. Analysis of corporate external environment

The environment is a double-edged sword for businesses. On the one hand, it provides opportunities for enterprise development, on the other hand, it restricts the company's operating activities, and may even bring risks. Companies must fully adapt to changes in the environment. With the rapid development of high-tech and extremely fierce market competition, the sensitivity and response ability of enterprises to environmental changes and the degree of adaptation to environmental changes determine the development prospects of enterprises in a certain sense. Accounting information related to the formulation and implementation of corporate strategy should include not only internal corporate information, but also information related to the external environment. The purpose of strategic management accounting to collect and organize information related to the external environmental factors of the enterprise is to enable the enterprise to modify the original development strategy according to the changes in the environment, formulate a new development strategy, and enable the enterprise strategy to be established on a scientific and reasonable basis . For example, strategic management accounting determines the recent investment by analyzing and judging the changes in the economic cycle, and technological advances can not only create new markets, generate a large number of new and improved products, but also make existing products and services obsolete. Regardless of the situation, changes in technological and environmental factors will change the company's relative position in the industry and its competitive advantage. Therefore, strategic management accounting must pay attention to the changes in the macro environment according to the characteristics of the enterprise and the industry in which it is located, study and judge the opportunities and threats that the changes in the macro environment may bring, provide relevant information, and make recommendations for available management measures. , So that corporate strategy is based on multi-dimensional, multi-angle, multi-level analysis.

2. Analysis of enterprise value chain

The production process of an enterprise's products is the process of value formation, as well as the process of expense generation and product cost formation. When a company delivers a product to a customer, it is also transferring the value of the product to the customer. Value is transferred once, but the value of the product is gradually formed and accumulated within the enterprise. "The orderly progress of an enterprise's production and operation activities constitutes an interconnected production activity chain, which is also the value chain of the enterprise." Enterprise value activities can be divided into two categories: basic activities and auxiliary activities. Basic activities involve various activities in material production, sales and after-sales service. Basic activities can be divided into internal logistics, production operations, external logistics, marketing, and services. Internal logistics are various activities related to acceptance, storage, and distribution. Production operations are various activities related to converting inputs into final products. External logistics are various activities related to storing and sending products to buyers. The market Sales are activities related to providing a way for customers to purchase products and directing them to purchase, and services are activities related to providing services to increase or maintain product value. Value activities are the cornerstone of building competitive advantage. The analysis of the value chain must not only analyze the individual value activities that constitute the value chain, but also, it is important to analyze the impact of each activity on the competitive advantage of the enterprise from the relationship between value activities. The task of value chain analysis is to determine the value chain of the enterprise, to clarify the relationship between various value activities, improve the efficiency of value creation, increase the possibility of reducing costs, and provide conditions for enterprises to obtain cost advantages and competitive advantages.

3. Analysis of enterprise cost drivers

The cost driver is the reason that causes the cost to change. The combination of multiple cost drivers determines the cost of a given activity. The relative cost position of a value activity depends on its position relative to important cost drivers. It is difficult to exhaust the detailed division of cost drivers, but from a strategic perspective, those that have a profound effect on costs are those that have universal and more strategic cost drivers, such as economies of scale, production capacity utilization models, and value activities. Connections and their relationships, timing, corporate policies, geographic location, etc. These cost drivers have a lasting effect on the cost of an enterprise. Different companies have different strategic cost drivers. These cost drivers can be more or less under the control of the enterprise. Identifying the cost drivers of each value activity can clarify the reasons for the formation and change of relative cost status, and provide an effective way to improve value activities and strengthen cost control. Due to the different characteristics and conditions of enterprises, in addition to understanding the general cost drivers when analyzing cost drivers, it is also necessary to analyze the cost drivers that have a significant impact on the enterprise in combination with the actual situation of the enterprise.

4. Comprehensive evaluation of corporate performance

From a strategic perspective, the competitiveness of enterprises is strongly influenced by the external environment, internal conditions, and competitive situation. Competition makes more and more unstable factors in the operation of enterprises. The rate of change in market growth, customer needs, product life cycles, and technological updates has greatly increased. How to meet customer needs in the most direct and easiest way and how to construct an enterprise organization In order to be able to respond sensitively to changes in the environment, how to gain an advantage in the fierce competition is a problem that management authorities must seriously consider. Faced with these problems, traditional performance financial measurement methods have been challenged. Based on the performance financial measurement, a comprehensive evaluation of performance is needed in order to conduct a more comprehensive evaluation of enterprise performance at a higher level. The comprehensive evaluation of performance includes both financial measurement and non-financial measurement of performance. "Financial measurement of performance has traditionally dominated." However, when the competitive environment requires managers to pay more attention and make business decisions, non-financial measurement indicators such as market share, innovation, customer satisfaction, service quality, business processes, product quality, market strategy, and human resources are being changed. It is widely used to measure the performance of enterprises and plays a greater role in the measurement of enterprise performance. The non-financial indicators of performance must be determined in conjunction with the company's industry characteristics, development goals and development strategies. Enterprises in different industries and different enterprises in the same industry have different goals, missions and strategies, and their performance measurement indicators are also different.