Li Strategic Management Accounting

A Practical Guidebook with Case Studies
1. Auflage 2018
ISBN: 978-981-10-5729-8
Verlag: Springer Nature Singapore
Format: PDF
Kopierschutz: 1 - PDF Watermark

E-Book, Englisch, 261 Seiten

Reihe: Management for Professionals

This book serves as a guide to strategic management accounting. It introduces new and useful concepts on how to collect, analyse, and evaluate options to enable managers to steer corporate directions and write strategic plans for the long-term success of the corporation. Starting with basic techniques and the latest strategic management approaches, the book then presents cases that show the techniques employed step by step. By demonstrating how easily the ideas can be translated into action, it is a valuable resource for business practitioners, as well as for students taking advanced management accounting courses.

Autoren/Hrsg.

Li, Wing Sun

Inhaltsverzeichnis

1;Acknowledgments;6
2;Contents;7
3;About the Author;10
4;1: Introduction;11
4.1;1.1 Introduction;11
4.2;1.2 Boundaries of SMA;12
4.2.1;1.2.1 Competitors Focus;13
4.2.2;1.2.2 Strategic Cost Management (SCM);13
4.2.3;1.2.3 Marketing Focus;14
4.2.4;1.2.4 Strategic Value Focus;14
4.3;1.3 Objectives of This Book;15
4.4;1.4 Organization of the Book;16
4.4.1;1.4.1 Part I: Fundamental Concepts (Cost and Value);16
4.4.2;1.4.2 Part II: Managing Customers;16
4.4.3;1.4.3 Part III: Managing Competitors;17
4.4.4;1.4.4 Part IV: Managing Corporate Value;17
4.5;1.5 Appreciation for Great Ideas;18
4.6;1.6 Concluding Remarks;18
4.7;References;19
5;Part I: Fundamental Concepts: Cost and Value;20
5.1;2: Cost Analysis;21
5.1.1;2.1 Introduction;21
5.1.2;2.2 Cost Structure;23
5.1.3;2.3 Contribution Margin Analysis;24
5.1.3.1;2.3.1 Contribution Margin (CM) Calculators;26
5.1.3.2;2.3.2 More Illustrations;26
5.1.3.2.1;2.3.2.1 Special Price Decision;27
5.1.3.2.2;2.3.2.2 Sale Incentive;27
5.1.3.2.3;2.3.2.3 Capacity Management;28
5.1.3.3;2.3.3 Limitations;28
5.1.4;2.4 Strategic Cost Analysis;28
5.1.5;2.5 Activity-Based Costing;33
5.1.5.1;2.5.1 ABC Overview;34
5.1.5.1.1;2.5.1.1 Illustration;34
5.1.5.2;2.5.2 ABC in Strategic Performance Analysis;35
5.1.5.2.1;2.5.2.1 Illustration;35
5.1.5.3;2.5.3 Limitations;40
5.1.6;2.6 Conclusions;40
5.1.7;References;41
5.2;3: Value Concepts;42
5.2.1;3.1 Introduction;42
5.2.2;3.2 Value Chain Analysis;43
5.2.2.1;3.2.1 An Example on Value Chain Analysis;45
5.2.3;3.3 Vertical Value Chain Analysis;48
5.2.3.1;3.3.1 An Illustration in the Telecom Industry on Network and Phone Businesses;51
5.2.3.2;3.3.2 Guides in Vertical Integration Analysis;54
5.2.3.2.1;3.3.2.1 An Example on Vertical Integration;54
5.2.4;3.4 Present Value;58
5.2.4.1;3.4.1 An Illustration of Present Value Concept;60
5.2.5;3.5 Conclusions;60
5.2.6;References;61
6;Part II: Managing Customers;62
6.1;4: Cost to Serve and Customer Selection;63
6.1.1;4.1 Introduction;63
6.1.2;4.2 Cost-to-Serve (CTS);65
6.1.3;4.3 CTS and Customer Life Cycle;66
6.1.4;4.4 Linking Customer Profit to CTS;69
6.1.4.1;4.4.1 Customer Profit;69
6.1.4.2;4.4.2 CTS;69
6.1.4.3;4.4.3 CP/CTS Ratio;70
6.1.5;4.5 Valuable Customers?;70
6.1.5.1;4.5.1 Locate Valuable Customers;72
6.1.6;4.6 Customer Selection;73
6.1.6.1;4.6.1 Business Potential Versus Customer Compatibility;74
6.1.7;4.7 Action Strategies;76
6.1.8;4.8 Sale Performance Monitoring System;77
6.1.9;4.9 Conclusions;78
6.1.10;References;80
6.2;5: From Customer Profit to Customer Value;81
6.2.1;5.1 Introduction;81
6.2.2;5.2 An Overview of the Customer Performance Reporting Model;82
6.2.2.1;5.2.1 Customer Operating Profits, Return on Assets, and Economic Value Added;84
6.2.3;5.3 Free Cash Flows;87
6.2.4;5.4 Customer Value Concept;89
6.2.4.1;5.4.1 Customer Lifetime Value;90
6.2.5;5.5 Modified CLV Model;92
6.2.5.1;5.5.1 Examples;94
6.2.5.2;5.5.2 Customer Retention;96
6.2.6;5.6 Key Driver Performance and Financial Outcomes;100
6.2.7;5.7 Concluding Remarks;101
6.2.8;References;102
7;Part III: Managing Competitors;103
7.1;6: Competitor Analysis and Accounting Model: Competitor Analysis;104
7.1.1;6.1 Introduction;105
7.1.2;6.2 Analytical Framework;106
7.1.3;6.3 Competitive Analysis;107
7.1.3.1;6.3.1 Competitive Position;108
7.1.3.2;6.3.2 Market Power;108
7.1.3.3;6.3.3 Competitive Scope;109
7.1.3.4;6.3.4 Market Capacity;109
7.1.4;6.4 Competitor Identification;110
7.1.5;6.5 Interfirm Market Rivalry;116
7.1.6;6.6 Proxy Measures;118
7.1.6.1;6.6.1 Market Commonality Index (MCI);119
7.1.6.2;6.6.2 Resource Significance Index (RSI);120
7.1.6.3;6.6.3 Market Power Index (MPI);123
7.1.7;6.7 Guide to Use Proxy Measures in Interfirm Competitive Analysis;125
7.1.8;6.8 Conclusions;126
7.1.9; Appendices;126
7.1.9.1; Appendix A;126
7.1.9.2; Appendix B;127
7.1.10;References;128
7.2;7: Competitor Analysis and Accounting Model: Accounting Model;129
7.2.1;7.1 Introduction;129
7.2.2;7.2 Assessment of Competitive Position;130
7.2.2.1;7.2.1 Accounting for Competitive Position;131
7.2.2.2;7.2.2 Competitive Position Analysis;133
7.2.2.3;7.2.3 Efficiency, Capability, and Financial Lever Analysis;136
7.2.3;7.3 Predictive Model;139
7.2.4;7.4 Conclusions;144
7.2.5;References;145
7.3;8: Competitive Analysis: Game Theory;146
7.3.1;8.1 Introduction;147
7.3.2;8.2 The Basics of Game Theory;147
7.3.2.1;8.2.1 Example;148
7.3.3;8.3 Case Revisited: Electrical Bike;152
7.3.4;8.4 Market Power and Pricing Decision;154
7.3.5;8.5 Conclusions;158
7.3.6;References;159
8;Part IV: Managing Corporate Value;160
8.1;9: Strategic Value Analysis: Value Search;161
8.1.1;9.1 Introduction;161
8.1.2;9.2 Short-cut Financial Statement Approach;162
8.1.3;9.3 Strategic Value Analysis;162
8.1.3.1;9.3.1 Identification Phase;165
8.1.3.1.1;9.3.1.1 Value Chain Analysis;165
8.1.3.1.2;9.3.1.2 Strategic and Value Drivers;165
8.1.3.2;9.3.2 Strategic Formulation Phase;169
8.1.3.2.1;9.3.2.1 Key Strategies;169
8.1.3.2.2;9.3.2.2 Strategic Plans;170
8.1.4;9.4 Concluding Remarks;172
8.1.5;References;172
8.2;10: Strategic Value Analysis: Business Valuation;173
8.2.1;10.1 Introduction;173
8.2.2;10.2 Corporate Blue Print (Financial);174
8.2.3;10.3 Case Revisited: Abbraccio Caffe (ABC);175
8.2.3.1;10.3.1 Strategic Assumptions;177
8.2.3.2;10.3.2 Financial Assumptions;178
8.2.3.3;10.3.3 Corporate Expansion Plan (in No. of Shop Opening);179
8.2.4;10.4 Free Cash Flows;181
8.2.4.1;10.4.1 Operating Cash Profit;182
8.2.4.2;10.4.2 Incremental Working Capital;182
8.2.4.3;10.4.3 Incremental Fixed Capital Investment;183
8.2.5;10.5 Discount Rate;185
8.2.5.1;10.5.1 Approaches;186
8.2.5.2;10.5.2 Heuristics Method;187
8.2.5.2.1;10.5.2.1 Dividend Valuation Method;187
8.2.5.2.2;10.5.2.2 Capital Asset Pricing Model (CAPM);187
8.2.5.2.3;10.5.2.3 Weighted Cost of Capital (WACC);188
8.2.6;10.6 Business Valuation (Using DCF);189
8.2.6.1;10.6.1 Discount Cash Flow (DCF);190
8.2.6.2;10.6.2 Valuing by DCF;191
8.2.6.3;10.6.3 What Is Discount Rate?;191
8.2.7;10.7 Concluding Remarks;193
8.2.8;References;194
8.3;11: Creating Value Through Strategic Alliances;195
8.3.1;11.1 Introduction;196
8.3.2;11.2 Value Formation in Strategic Alliance;196
8.3.2.1;11.2.1 Relation-Specific Assets;197
8.3.2.2;11.2.2 Interfirm Knowledge Sharing;197
8.3.2.3;11.2.3 Complementary Resources Endowments;198
8.3.2.4;11.2.4 Effective Governance Mechanism;199
8.3.2.5;11.2.5 Interactions;200
8.3.3;11.3 Payoff Structure (Private vs. Common Benefits);201
8.3.3.1;11.3.1 Types of Alliance Under PCB Ratios;204
8.3.3.2;11.3.2 Example: Kosmos Laboratory;206
8.3.4;11.4 Strategic Symmetry (Interfirm Fit);209
8.3.5;11.5 Risk and Payoff Value;211
8.3.5.1;11.5.1 Risk Mitigation Measure;213
8.3.5.2;11.5.2 Risk-Adjusted Discount Rate;214
8.3.5.3;11.5.3 Example: Kosmos Laboratory (Continue);215
8.3.5.3.1;11.5.3.1 Competitive-Cooperative Mode of Partnership;215
8.3.5.3.2;11.5.3.2 Adjusted Payoff Values for Kosmos, A Co. and B Co.;216
8.3.6;11.6 Conclusion;216
8.3.7; Appendix: Composite Measure of Strategic Symmetry Index;217
8.3.8;References;218
8.4;12: Cases and Solutions;219
8.4.1;12.1 Case 12.1: ART Food Ltd.;219
8.4.1.1;12.1.1 Sales and Operations;220
8.4.1.2;12.1.2 Current Problems;227
8.4.2;12.2 Case 12.2: BAX Containers Ltd.;227
8.4.3;12.3 Case 12.3: Scenario: Dealership Contract;229
8.4.4;12.4 Case 12.4: Superstores;229
8.4.5;12.5 Case 12.5: Ah Kin Electric Bike;239
8.4.6;12.6 Case 12.6: Tender Bid;247
8.4.7;12.7 Case 12.7: Abbraccio Caffè;253
8.4.8;12.8 Case 12.8: Telnet Ltd.;257