Strategic Management Accounting

Running head: STRATEGIC MANAGEMENT ACCOUNTING
Strategic management accounting
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1STRATEGIC MANAGEMENT ACCOUNTING
Table of Contents
Introduction................................................................................................................................2
Answer (A).................................................................................................................................2
Answer (B).................................................................................................................................5
Answer (c)..................................................................................................................................7
Answer (d)................................................................................................................................10
Conclusion................................................................................................................................13
Reference..................................................................................................................................14

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Introduction
Tata Steel Europe that is the leading producer of steel from Europe supplies the high
quality strip steel products to the demanding market including automotive, construction,
engineering and packaging. It is one of the most diversified global steel products with its
operation in 26 nations and having its commercial presence in more than 21000 employees
and 50 nations. Main purpose of the task is to analyse the business strategy of the entity
through theoretical model and analysing how key factors incorporated in the business of Tata
Steel Europe have impact on the business strategy of the entity. Further, the report will
critically evaluate the corporate social activities and business operations of the company. The
report will further state the usage of balanced scorecard for measuring its performance and
delivering its commitments towards corporate responsibility (Tatasteeleurope.com, 2019).
Answer (A)
Analysing the current business strategy of the business through theoretical model
One theoretical model used for analysing the business strategy of Tata Steel Europe is
Ansoff Matrix. Igor Ansoff who is best known as father of the strategic management
developed the strategy. The Ansoff market mix or product mix is the tool used for assisting
the business to decide the market and product growth strategy. Ansoff strategy recommends
that the attempt of the business for growing the dependency on whether the company markets
existing or new products in existing or new market (Dawes, 2018). Traditional 4 box grid or
matrix of Ansoff model includes market development, diversification, market penetration and
product development. However, the revised Ansoff matrix includes 3 x 3 or total 9 matrixes
or grid box that includes market development, market expansion, market penetration, partial
diversification, limited diversification, product expansion, diversification, partial

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diversification and product development. Ansoff matrix is used by the marketers who have
the growth objectives as their main objective. It further offers the strategic choices for
achieving different objectives. 4 major categories for the purpose of selection are there those
includes – market penetration, market development, product development and business
development or diversification (Schawel & Billing, 2018).
Market penetration – existing products, existing market
Here the existing products are marketed to the existing customers. This means
increasing the revenue through promoting the existing product or repositioning the same.
However, the product is not altered. Main objectives of this strategy are –
 Increasing or maintaining the market share of the products. It can be achieved through
combining the competitive strategies for pricing, sales promotion, advertising, and
dedicating more resources to the personal selling (Yin, 2016).