Advanced Management Accounting Assignment

Running head: ADVANCED MANAGEMENT ACCOUNTING
Advanced management accounting
Name of the student
Name of the University
Author note

1ADVANCED MANAGEMENT ACCOUNTING
Executive summary:
The report has analyzed the information, regarding the SPMS. It has portrayed the literature review
for the SPMS and has found that has effectively enhanced the performance of the supply chain for a
long time. However, due to lack of proper improvisation and mismanagement it has failed to give a
boost to the crippled management system of the supply chain. The report has further focused on the
factors like BSC system and financial, non-financial system for making the SPMS an ideal solution
for the supply chain management. Moving forward, the report has analyzed various tools to measure
the performance of the firm and it has portrayed the objective and result of the SPMS. To conclude,
the report has provided some practical recommendations that will beneficial for the firm to lead to
have a smooth transition from older system to the newer one.

2ADVANCED MANAGEMENT ACCOUNTING
Table of Contents
Introduction:...............................................................................................................................3
Literature review:.......................................................................................................................3
Strategic Performance Measurement Systems:......................................................................3
Balanced Score Cards:...........................................................................................................4
Financial and non-financial performance measures:..............................................................6
Strategic performance measurement for supermarket:..............................................................6
Objective and result:..............................................................................................................6
Performance measurement:....................................................................................................7
Qualitative:.........................................................................................................................7
Quantitative:.......................................................................................................................7
Alternative algorithm:........................................................................................................8
Recommendation for developing ideal SPM for super market:.................................................8
Conclusion:................................................................................................................................9
Reference:................................................................................................................................10

3ADVANCED MANAGEMENT ACCOUNTING
Introduction:
With ever-rising demand of customized goods from the producers and higher rate of financial
inclusion along with better connectivity, supplier recently has been facing sudden rise in their
activities (Wagner & Fearne, 2015). It is the fact that though they have well established management
system, however in front of the demand of their service, an urge to introduce an advanced and New
Strategic Performance Measurement Systems (SPMS) for the supply chain is consistently growing
(Searcy, 2016). SPMS is not only meant to provide a strong holding on the ever-increasing customer
demand, moreover it is meant to provide a strong ground to the supply chain from the accounting
perspective. This report is going to analyse the various aspects of the SPMS and in addition, it will
portray a Strategic performance measurement for supermarket chain. The report will also provide
feasible recommendation to implement the new strategic management system with a aim to a smooth
transition of the supply chain
Literature review:
This section of the report is meant to analyze the previous researches on the strategic
management system. It has considered previous researches for the strategic management for the
supply chain and portrayed what other researches argue about this.
Strategic Performance Measurement Systems:
SPMS or Strategic Performance Management Systems is a tool that helps in driving execution
of strategies and performance improvements. It is a tool that vividly shows the strategic goals for any
company to the line of executives and also monitors the progress towards this goals through
performance measures which are simple and intuitive (Bhattacharya et al., 2014). It creates a common
language among the leaders of an organization, which paves ways for effective working
communication. This tool can be divided in to five elements like (Coe & Letza, 2014):
Aligning strategic operational goals into the day to day objectives
A scorecard development for reporting
Creating techniques which makes the reporting system easier
Remaining more focused on the characteristics that really matters
Checking both the operational and the strategic decisions so that to make them more
validating
This tool plays a specific role in alienation and application of the strategies but few metrics should
be kept in mind for implementation of the tool. The matrices should be chosen in such a way that they
could be blended with the objectives of the strategies and can be used as the business goals for any
unit (Cooper, Ezzamel & Qu, 2017). They should pave the way for comparison across different
segments of clients, products and the various organizational divisions. Many discussions are made
regarding the acting style of SPM. Gibbons & Kaplan, (2015) portrays that, they not only creates a