Management Accounting

Running head: MANAGEMENT ACCOUNTING
Management Accounting
Name of the Student:
Name of the University:
Author’s Note:
Course ID:

1MANAGEMENT ACCOUNTING
Table of Contents
Question 1:.........................................................................................................................2
Part a:.............................................................................................................................2
Part b:.............................................................................................................................2
Requirement i:............................................................................................................2
Requirement ii:...........................................................................................................2
Requirement iii:...........................................................................................................3
Requirement iv:..........................................................................................................3
Requirement v:...........................................................................................................4
References:........................................................................................................................5

2MANAGEMENT ACCOUNTING
Question 1:
Part a:
Value chain is described as a business model that represents the overall
activities needed for formulating any product or service. In case of organisations
involved in producing products, value chain comprises of the steps that include bringing
any product from conception to distribution like raw material procurement,
manufacturing processes and marketing activities (Barney 2015). This analysis is
performed for increasing the production efficiency in order to assure delivery of
maximum value for the organisation at the least possible cost. The two ways through
which the value chain analysis results in yielding benefits to an organisation are
described as follows:
Identification of sources of competitive advantage:
Since all activities could not traded by an organisation in the external market,
value chain analysis suggests that the organisation could consider such activities as the
sources of economic rent. Moreover, the activities could act as obstacles to the new
entrants or they might result cost disadvantages to the competitors (Herrera 2015).
Identification of complex interrelationships and dependencies:
The internal linkages could be described as interrelationships between activities
within the similar organisational units, while the external linkages are between the
business units of identical or different organisations. By analysing these
interrelationships, an organisation could seek benefit from joint optimisation and
coordination.
Part b:
In this section, Macquarie Group is selected as the organisation, which is an
independent multinational investment bank and financial services firm operating in
Australia.
Requirement i:
The mission of Macquarie Group is to provide value to creativity and innovation
and it uses its diversity via inclusion. Inclusion denotes developing a workplace
environment, in which staffs are motivated to work irrespective of their age, gender,
cultural affiliation, ethnicity, educational background or beliefs (Koc and Bozdag 2017).
In terms of values, Macquarie Group always undertakes efforts for identifying
opportunity so that they could be realised for the clients, community and other
stakeholders. Moreover, the organisation provides encouragement to integrity,
innovation and entrepreneurial spirit (Macquarie.com 2019).
Requirement ii:
The description of the competitive strategy of Macquarie Group could be
analysed from its differentiation strategy. The organisation procures the valuable and
unique inputs, which are not available readily to the competitors. For differentiation
basis, it changes the individual entities. The cost drivers like linkages, interrelationships,
integration and scaling are altered for the development of uniqueness. Some instances
of differentiation for Macquarie Group are provided as follows: