Strategic Management Accounting

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STRATEGIC MANAGEMENT ACCOUNTING
Strategic Management Accounting
Name of the Student:
Name of the University:
Author’s Note:

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STRATEGIC MANAGEMENT ACCOUNTING
Table of Contents
Introduction......................................................................................................................................2
Discussion........................................................................................................................................2
Long term Goals and Stakeholders of the Business....................................................................2
Perspective and Suitable Objectives of the Business..................................................................5
Strategic Map...............................................................................................................................7
KPI and KPD of the Business......................................................................................................8
Issues Relating to Implementation of Balanced Scorecard.........................................................8
Conclusion.......................................................................................................................................8
Reference.......................................................................................................................................10

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STRATEGIC MANAGEMENT ACCOUNTING
Introduction
The main purpose of assessment is to analyse the financial performance of a business
which has adopted balanced scorecard approach for the purpose of measuring the performance of
the business and also controlling the activities of the business. The company which is selected
for this assessment is Philips Electronics company and the same is considered to have adopted
balanced scorecard approach. The assessment would be conducting a review of various
performance indicators of the business and analyse whether the business is lagging or leading in
terms of the performance indicators of the business. The assessment would also be showing
application of a strategy map for the purpose of effectively representing the process (Hoque
2014). The assessment would also be identifying the key financial lead and lag factors which can
affect the business.
Discussion
The company which is selected for this assessment is Philips Electronic Ltd which is
engaged in the business of manufacturing personal electronic item, home appliances and
personal care product. The company has adopted an approach which allows the management of
the business to appropriately apply Balanced Scorecard approach so as to optimize and manage
the activities and operations of the business in an effective manner.
Long term Goals and Stakeholders of the Business
The long-term goals of the stakeholders are formulated by the management of the
business for ensuring that the business is trying to achieve growth in the operations of the
business and also trying to enhance the profitability of the business. The management as per the
balance scorecard has portrayed four major areas which are to be considered which are

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STRATEGIC MANAGEMENT ACCOUNTING
competence, financial processes and customers for the purpose of generating and developing the
business (Reefke and Trocchi 2013). As per the business, the main stakeholders which should be
considered by the management of the company are customers, employees, shareholders of the
business. In addition to this, the management also needs to consider the needs of the community
at large.
The chart which is shown below shows some of the key performance estimates of the
business of Philip Electronics.
Figure 1: (Chart Showing net profit for the business over last five year)
Source: (Philips 2017 Annual Results)