Strategic Management: Setting Business Objectives and Impact of Operational, Management Accounting, Sales and Marketing, Human Resource, and Risk Management Processes

This document discusses the importance of setting strategic business objectives and the impact of various processes such as operational, management accounting, sales and marketing, human resource, and risk management. It provides insights into New Zealand businesses and their strategies. The document includes case studies and analyses of the impact of different processes on business objectives.

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Strategic Management
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Table of Contents
Section 1.........................................................................................................................2
1.1 Strategic business objectives................................................................................2
1.2 similar business objectives followed by firms.....................................................3
1.3 New Zealand business using a different strategic business objective..................3
Section 2.........................................................................................................................4
2.1 Role of operation management in setting business objectives.............................4
2.2 Analyse the impact of two operational areas on the strategic business objectives
................................................................................................................................................4
Section 3.........................................................................................................................5
3.1 Importance of Management Accounting in setting strategic business objectives5
3.2 The impact of two management accounting processes on the strategic business
objectives................................................................................................................................6
Section 4.........................................................................................................................7
4.1 Impact Sales and Marketing has on setting strategic business objectives...........7
4.2 The impact of two Sales and Marketing processes on the strategic business
objectives................................................................................................................................8
Section 5: Human resources...........................................................................................9
5.1 Impact Human Resource Management has on setting strategic business
objectives................................................................................................................................9
5.2 Impact of two Human Resource Management processes on the strategic
business objectives in New Zealand....................................................................................10

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Section 5: Risk management........................................................................................11
5.3 Impact Risk Management on setting strategic business.....................................11
5.4 Impact of two Risk Management processes on the strategic business objectives
..............................................................................................................................................11
References....................................................................................................................13

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Section 1
1.1 Strategic business objectives
It has been found that numerous New Zealand businesses are suffering from issues
related to managing operations which can be improved if managers recognise market
opportunities and plan business objectives strategically. The first and foremost, Businesses
can improve their performance by establishing directions which is meant to align operational
priorities with organisational objectives and apart from rectifying mistakes through revising
policies; developing a culture of innovation can help the business to sustain in the market
longer period.
Aligning product based business objectives and policies with the entire business
strategy may seem easily implacable yet various issues have been experienced by the
managers. Even after creating policies and mission statement related to operational priorities,
workers cannot really the follow the guidelines due to difference between firm’s objectives
and sudden operational priorities. In order to solve the matter, New Zealand businesses must
try to focus on aspect of balancing two features together. For instance, if serving quality
product is priority then infrastructure should be supportive enough to provide that or a
company cannot rely on vendors which supplies poor quality of materials. Measuring the
quality of provided material and trying to improve performance by customers’ feedback or
developing HR capabilities through training and recruitment and motivate them to obtain
product based goals are some of the measures that a business can opt for to improve itself.
Innovation is necessary in business because if managers are only focusing on
eliminating faulty practices, correlating mistakes and apply smart product based policies then
at a point the business will be stagnant. In order to add variation and increase acceptability a
business should practice extraordinary ideas of implementing a cost effective way or how

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quality can be increased without altering operation cost etc. Establishing direct routes is
predictable and chances are strategies can be imitated by rivals. Thinking in an extraordinary
way and good relationship with the suppliers’ help to deliver quality and maintain
relationship with the customers in longer terms.
1.2 similar business objectives followed by firms
A country’s psychological health is dependent on how happy people are within the
given parameters. New Zealand is a country where managers have a tendency to improve the
workplace culture for enhancing HR capabilities. Another important factor is people can
accept various cultural background quicker than any other nations. It increases employee
loyalty, efficiency and they feel more engaged with the work. With the strategic objective of
improved and efficient outcome, boosting employee engagement providing facilities can be
spotted in companies and MixBit and Trade Me. While Trade Me offers employees to avail
games and Mp3 song player to beat stress and input the best at work; as per Youtube.com
(2019), MixBit offers a range of gaming facilities including LEGO, pool and table tennis
while collaborating for original video contents.
1.3 New Zealand business using a different strategic business objective
Air New Zealand has been following a strategic direction since the beginning of
millennium to break their monotonous, non-flexible services to customized and more bespoke
facilities. The company realized the changing behaviour of customers regarding travelling
and following the changing needs the airline have chosen to deliver value based services
which satisfy all their travelling criteria. With the changing nature of business, following the
study of Liu, Ke, Wei and Hua (2013), the company has applied digital strategy to identify
the current customer base. The business objectives of digital strategies are creating brand
awareness, engage customers to the brand and collects feedback to serve the customers better.

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To increase the revenue and sustain within competitions framing efficient digital strategy is
the appropriate generation based approach.
Section 2
2.1 Role of operation management in setting business objectives
As per the case study, at stated in Sem.tsinghua.edu.cn (2019), improving operation
management can help to accomplish business objectives only if following framework can be
followed. Operation managers, generally, align shared goals to strategic plans which makes
an organisation capable to compete within turbulent business environment. Operation
managers take the responsibility of procedures which are analysed, modified and followed
later. Keeping the operation plan in centre, managers can shape the performance of the entire
workforce to accomplish particular business objectives. While different departments are
working on different responsibilities, it is the duty of managers to align all those segregated
duties with one business objective. The task is to allocate duties efficiently and maintain
seamless communication for collaboration and support from various departments. Such as,
irrespective of industries, operation managers establish linkage between capability human
resource, suppliers’ quality and infrastructure to offered services and products or connecting
marketing with the percentage of sales as well as profitability.
2.2 Analyse the impact of two operational areas on the strategic business objectives
‘Production, operation planning and supervising the entire method’ contributes
positively to business goals. Apart from financial planning, how the targeted production will
be met that is another question to be solved. Operational departments can satisfy the mass
requirements when workforce is flexible enough to work at different working hours and
explore their full potential. Understanding customers’ demand, serving them high end
customers’ service by addressing their feedback is important products can amended based on

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those feedback applying just in time approach. Following this policy, firm’s performance can
be measured and quality can be managed too.
It must be remembered that companies have to provide the customers whatever the
organisation has promised at the time of marketing campaign. Southwest Airlines clearly
refuses to transfer baggage as at that time they were not capable of providing that facility. It
helped them to gain competitive advantage and fulfil business objectives of on time arrival
and offering efficient customer service as well. As a result, number of complaints regarding
lost baggage has decreased.
Managing inventory costs and suppliers’ relationship is significant in terms of
fulfilling business objectives of satisfying customers as well within budget. In case a
company wants to deliver premium quality they cannot choose suppliers who provide low
quality materials. Besides, a company should certify suppliers based on their quality as
company mission is to serve premium quality. Company needs to understand the demand of
the market, otherwise inventory cost will be high. A company which runs on cost effective
operational system cannot make wrong calculations while understanding the customers’
requirement to avoid increased inventory cost.
As firms of New Zealand confronted with dilemma in making business decisions and
suffers from demand uncertainty at a large rate, Oracle treating all the product lines in similar
manner and by planning resource packages smartly, they try to accomplish the business
objectives.
Section 3
3.1 Importance of Management Accounting in setting strategic business objectives
Management accounting helps to estimate the budget while finance planning. It tries
to predict the budget analysing the gathered information and determined actions within

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available firm policies. The study of Taipaleenmäki and Ikäheimo (2013) states correct
balance between facts and figures keeps the financial control in hand of managers. It is
important as it helps to interpret monetary information and predict the capability. As stated in
Ghanbari and Vaseli (2015), financial planning makes the operation more organised and stick
to the budget. Companies can survive in long terms following the digital tools for
management accounting and gain competitive advantage. Implementation software for
management accounting help to do the tasks with efficiency and more quickly. Customers
want their service within affordable range, whereas shareholders ask for more profit. In such
a condition planning monetary resources professionally and in a cost effective manner can
help to manage all these aspects. With the gradual increase in economic competition,
companies feel pressure to perform at their best based on financial figures. That is why, cost
effective innovation procedure have become necessary for increasing the quality and
percentage of profit while keeping the operation cost lower. Another important thing is, while
accounting managers develop an idea about various procedures and its capability of adding
value towards organisational performance.
3.2 The impact of two management accounting processes on the strategic business
objectives
ABC accounting process or activity based costing is one of the effective techniques
that has been applied in New Zealand business scenario. Activity based costing is dependent
on usage of resources. Such activities cover entire range of products and services. By
following this method, cost of entire project can be determined and it helps managers to take
important business decisions assigning more direct costs.
Whereas, activity based costing decides the activities first and calculates cost later;
cost benefit analysis compares two or more strategic choices and choose the most cost
friendly term as per company capability and customers’ demand. Future costs are analysed as

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revenue is associated with this matter. The performance depends on the smart investments
too. It compares cost of business strategy and the value of its outcome in parallel. It is
compared on the basis of tangible and intangible costs along with benefits. The objective is to
measuring finance for restoring value.
PWC, Deloitte are some of the big industrial names which can be regarded successful
outcome of efficient management accounting.
Section 4
4.1 Impact Sales and Marketing has on setting strategic business objectives
Irrespective of business size and its industry, need of marketing plan is everywhere as
structured objectives help to understand managers and employers which way to follow for
accomplishing business goals. Acknowledging the business objective of a particular
organisation, followed by a situational analysis marketing plan includes selecting preferred
demographics and then prepare strategies to cater the needs of that targeted customer bases.
The success of business objectives depends on effective use of marketing strategies that
involves effective communication plan with customers and within the company too. Impact
of sales and marketing strategies will affect the business goals positively when the strategies
would be specific and goals oriented. Contemporary digital strategy is fine example of
measurable strategy as using social media business actually can measure a product’s
acceptability among targeted audience and amend the product line accordingly expecting
greater benefits which has been implemented in all possible business industries. Reasonable
objectives makes the success easier to achieve and it must align with the available resources.
The impact of sales and marketing strategies over business objectives will generate desired
outcome only if all of the above mentioned criteria can be fulfilled within a specific timeline.
Basically, following the study of Huang and Sarigöllü (2014). , it can be said, marketing

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enhances product recognition, creates a solid brand image and convinces the targeted
demographics to buy a particular product or service. A successful implementation of
marketing campaign leads towards fulfilment of organisational objectives. On the other hand,
increased sale boosts the capacity of production. Sometimes, there are some sale strategies
like businesses try to create a mock crisis of products to understand the acceptability of a
particular product or service. Based on received feedback from customers, company pushes
the production and marketing and both of the aspects penetrate sale and profitability.
4.2 The impact of two Sales and Marketing processes on the strategic business
objectives
While talking about sale and marketing process or techniques, it must be remembered
that most of the businesses in New Zealand are innovative and belongs to national origin.
Businesses are approaching globally to the local audience. Although, digital strategies;
creating social media pages help to add competitive edge and serving customized
preferences few local approach organisations can follow to fulfil business objectives.
One of the two process is to create a local network of people who are relevant to the
business type. Contacts is important to create popularity for a particular brand locally. Joining
local business associations and keep the members updated about the new products and its
purpose. Such communities can be created in digital platform as well. A digital business
community not only increases brand recognition power of target audience, it will directly
reflect to the sales. Local networks or business contacts can be created by distributing
business cards and through advertisements introducing the new product line or services.
As per the study of Eid and El-Gohary (2013), another effective and contemporary
way is to use method of digital marketing. Professionals can be recruited to execute
responsibilities of applying methods so that the company website would appear among the

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names of most searched list using various keywords. Moreover, use of Facebook and
Instagram for developing a brand image through positing creative content is the most
contemporary ideas of all. Understanding of clients’ demand, their preferences is crucial
which need skilled market analysts. Apart from establishing business relations, developing
media relations is important too. Local newspapers, radio, television advertisements, radio
broadcast can do the publicity of business.
Once the business get establishment, customer loyalty programmes are helpful to
retain the existing base and innovations in marketing procedure and noticeable change in
product line will enhance the percentage of sales. Moreover, a company like Xero has
attracted a customers by following an honest approach in business and providing employees
with best ever social support to work attentively (Xero.com, 2019). It is a great marketing
process which is being vocal and publicize a culturally advanced workplace. It has the ability
to build up competitive advantage and capture the attention of investors, customers and
potential talents as well.
Section 5: Human resources
5.1 Impact Human Resource Management has on setting strategic business objectives
Strategic human resource management tries to establish a relationship between a HR
capabilities and organisational objectives with the aim of achieving flexibility in terms of
power of innovation and enhanced production rate. As discussed in Kramar (2014), it
improves a company’s competitive position in market and performance gradually. Managing
HR capabilities strategically is significant as rival business can imitate other strategies yet
they cannot replicate talents possessed by a certain organisation. A company may invest
higher monetary amount but if HR management is not up to the mark, investment means

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nothing on that field. That is why, companies need to focus starting from the recruitment, on-
job trainings to retaining them with loyalty policies.
Now a days every company irrespective of national background have separate
department to manage employees realising the fact that improved HR capabilities can directly
influence company’s growth. The central jobs of HR managers are to develop them
consistently offering training and development sessions and retaining them by revising HR
policies so that they can continue to support the company fulfilling various requirements. To
possess a capable workforce creating training a development programmes not only for
trainees but also for working professionals according to the project needs, as it can help to
strengthen product or service quality. Due to technological advances, there are various job
roles which have been omitted yet effective management of technologies help the company to
take the control of both the budget and quality. HR managers consistently try to provide
friendly workplace culture where employees can meet the targets and comply with
organisational rules. A workplace where effective communication is present and people are
happily working, is the place likely to generate higher production rate than their rivals. The
example of MixBit helps to understand, how HR management can influence a business
positively by managing human resource strategically according to future needs of a certain
organisation.
5.2 Impact of two Human Resource Management processes on the strategic business
objectives in New Zealand
Particularly, if the case of businesses in New Zealand, according to the case study,
described in Sem.tsinghua.edu.cn (2019), aspect of HR management is dealt with utmost
importance as they believe in the quality of job life, do not prefer to exploit people in names
of business requirements and employment along with that respect people’s dignity. In case
national organisations aim to possess high calibre workforce, their recruitment process must

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include high end evaluation process which is capable of filtering talents according to the
various business needs. Employees need to have efficient skills to manage job responsibilities
within working schedule, it will enable them to balance work and life. Basically, by
providing a healthy workplace environment and support organisations can enjoy efficiency
from workers and gain employee loyalty for long term.
Additionally, training and development facilities help an employee not only to solve
organisational issues but to improve their individual capabilities. Apart from developing
workplace environment, proper leave policy, reward and recognition, retirement policy and
added benefits help an organisation to retain such talents to achieve long term goals. As
described in Rafiei and Davari (2015), another aspect can be mentioned that is maintaining
seamless communication across all the hierarchical levels is necessary for sharing knowledge
and contribute opinion in decision making. Organisations who value their employees’
opinions, likely to do well in business. Varied opinions enables to approach innovation in
business along with that if a company starts to address such efforts employees will feel
valued and contribute more towards business needs. As mentioned before, MixBit has
invested a great deal of money for developing accurate workplace environment for employees
expecting highly creative output from them.
Section 5: Risk management
5.3 Impact Risk Management on setting strategic business
No business is free from risks whether it may be a decision, execution related or
regarding the product delivery. According to Carvalho and Rabechini Junior (2015),
acknowledging the strategic outline whatever decision an organisation is opting for that
should impact the final result. While implementing the decisions risk can be generated too
and there are several market risk after delivering a product to the market regarding its

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acceptability. Mitigating business risk is a part of implementing strategies successfully. That
is why, efficient risk management is necessary to maintain flow of the production
strategically and its performance too.
5.4 Impact of two Risk Management processes on the strategic business objectives
There is the most frequently used method for managing risks. Evaluating the purpose
and chances of mitigating risks, risk management policies first recognise the source of the
risk. Professionals invest time and money to analyse it and research on methods applying
which risks can be mitigated. After discussing the potential of various solutions, risk is
treated and consistently being monitored if spotted with any difficulties further.
Apart from the generic approach a business can mitigate risks based on types of risks
in sectors of strategy formation, compliance of regulations, financial or operational. It has
been noticed that in New Zealand businesses are dependent on operational efficiency mostly.
Therefore, areas of technical risks, operating day to day operations with efficiency is
important for avoiding risks. Operational risks can occur due to HR faults as well. Therefore,
handling customers and job responsibilities with utmost dedication is significant for
businesses in the field of New Zealand.

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