Strategic Management Accounting: Value Chain and Strategy Report

This report delves into the realm of strategic management accounting, focusing on the application of various tools and techniques to enhance business performance, particularly within the context of the aged care establishment MMG. The report begins with an exploration of value chain analysis, emphasizing its role in identifying and optimizing internal firm actions to achieve a competitive advantage. It then examines the implementation of demand-driven planning systems, adaptive supply chain strategies, and product innovation to improve efficiency and market responsiveness. Furthermore, the report discusses the critical importance of regularly examining and adapting strategic plans, developing strategies that address identified issues, and establishing effective monitoring mechanisms. It also analyzes the strategic management cycle, including environmental scanning, SWOT analysis, goal formulation, and project implementation. The leadership role of professional accountants in supporting corporate strategy, cost reduction, revenue enhancement, and risk mitigation is also highlighted.

Running head: STRATEGIC MANAGEMENT ACCOUNTING
Strategic Management Accounting
University Name
Student Name
Authors’ Note

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Enhancement of value chain using strategic management tools
Business corporations that successfully develop effectual and efficient procedures of value
chain and enable best practice enhancement with the usage of an integrative system of
improvement can improve business practices and thereby performance (Wheelen et al. 2017).
Value chain analysis
As suggested by Robson (2015), value chain analysis can be referred to as a strategic tool that
can be utilized for analysing different internal firm actions. The primary aim is to identify
those actions that are most valuable to the business enterprise and the ones that can be
augmented to deliver competitive advantage. However, by bearing in mind internal actions,
the analysis reflects the areas of competitive advantage of the business enterprise. The value
chain model proposed by Porter can be followed for analysing the internal actions of the
corporation to identify the valuable actions to the corporation and the ones that could be
improved to deliver competitive advantage. According to the current model, value chain is
essentially made of primary actions that enhance value to the company’s final product
directly and at the same time support actions that can enhance value indirectly (Rothaermel
2015).
Use of the value analysis tool can therefore help the firm MMG in identifying specific
sources of competitive advantages and identify definite opportunities to acquire cost
advantage and opportunities to generate differentiation of products/services. Also, adoption
of this strategic management tool can help in value creating actions of different participant
industries (Jeston 2014).

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Effective Strategic Tools
Demand Driven System of Planning
The management of the firm can also consider adoption of a demand driven scheme and
business operating model founded on insight of real time demand and shaping of demand.
The appropriate prediction along with contingency planning tools can ensure a proper view
and an effectual response to different risks namely political instabilities and natural calamities
affecting operations of manufacturing and many others (Hill et al. 2015). Business concerns
can adjust strategies of pricing along with strategies of promotions in order to shape overall
firm’s demand, move supplementary products properly, drive growth of firm’s revenue and
expand enterprise’s revenue for different high demand product with constrained supply in the
market.
Developing an adaptive and agile system of supply chain
The management can consider adapting their system of supply chain to altering environment
and transforming market opportunities along with events. Business concerns have the need to
take into consideration significance of deployment of dynamic system of planning

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capabilities and continually planning different operations to make certain responsive agility
to satisfy altering demands (Bryson 2018).
Optimizing designs of product and management of product
Innovation can be considered to be vital for attainment of a competitive edge in the market.
Management can consider formulation of designs for optimizing supply, manufacturability
and operations of supply chain. In addition to this, product innovation along with competitive
advantage gradually more stem from selection and handling of suppliers as well as
technologies. In case if a business enterprise can handle information, individuals, procedures
and decisions concerning a product throughout the lifecycle, then it can attain strong
outcomes and market leadership (Carnall 2018). Essentially, there is no better means to attain
the same with seamless and proper collaboration procedure across the total end-to-end chain
of supply. The capability to orchestrate the entire conversation across the end to end business
and utilize demand driven opinion has never been in reach. For example, cloud collaboration
tools for particularly supply chain can aid product designers to innovate solutions that diverse
customers are asking for. Furthermore, management of the firm can align the supply chain
with specific business objectives by assimilating sales and planning of operations with
business planning. The management of the company can think about embedding
sustainability into functioning of supply chain. The triple bottom line of individuals, profit
and planet has never been more significant than what it is today. Reports reveal that firms
striving for sustainability of social as well as environmental aspects can attain competitive
advantages, particularly with regard to efficiency of production, skills of supplier
management and magnetism to members of the staff (Larson et al. 2014)

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Examination, application of techniques for developing/executing/monitoring stratagems
Examination of strategies: Formulation of strategy needs to be carried out on a daily basis as
frequently as necessary by transformation in the industry. The aged care establishment MMG
also have the need to keep a track of the advancement of the operations else wise lack thereof
on the important objectives outlined in the strategic scheme. The old care organization can
consider being objective and adequately flexible to understand whether the stratagem is
appropriate in the way it was initially conceived. Also, it is important to comprehend whether
there is requirement for revision otherwise replacement (Piercy 2016). In the current business
case, the strategy needs to be fine and communication of the stratagem to members of the
staff needs to be properly done with proper planning. In essence, this analysis and feedback
of the strategy design designs the base for successful stratagem of the upcoming period.
Further, management of MMG can develop a measurable stratagem in order to determine
whether the strategy is effective and enumerate overall performance and examine whether the
same can attain objectives of the enterprise. Also, it is also important to enumerate specific
variables during the process of implementation. In order to monitor effectiveness of the
strategy, there is need to institute base values from implementation of strategy and
monitoring overall advancement.
Development of strategies: Kaplan and Atkinson (2015) asserts that developing stratagems is
essentially an appropriate way to concentrate the efforts and decipher the ways to get things
done.
Provide definite direction: As rightly indicated by Hill et al. (2014), an appropriate strategy
takes into account existing barriers as well as different resources that can properly employee
for betterment of operations.

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Fitting resources as well as opportunities: The management of the aged care unit MMG can
take into consideration specific criteria for development of appropriate strategy that can help
them in addressing the identified problems. There is requirement for a stratagem that can
deliver a direction and an enhancing experience, develop skills otherwise enhance resources
along with opportunities (Augier and Dew 2018). Also, the strategy needs to be such that it
can acquire advantage of the existent resources as well as assets of MMG. Also, while
developing the strategy, management of the group can bear in mind the fact that it is
important to embrace novel opportunities namely emerging public concern. Additionally,
when initiatives are introduced to attain important things, there is necessity for resistance.
Reach the identified affected ones: Moreover, the strategies developed need to address
identified issues or else problems. Essentially, these strategies have the need to link the
intervention with the ones who should gain (Grant et al. 2014).
Progression of the mission: There need to be strategies that can make a variation on the
mission and goals. In case if the objective is to prevent a specific issue, there needs to be
facets that can contribute to specific risks (Barca 2017).
Implementation and monitoring
There needs to be implementation team or unit for development of a procedure of ongoing
monitoring of execution advancement. Part of the procedure that Mark Moran Group can
consider is to gather feedback from different members of the staff as well as clinicians of the
aged care establishment. For instance, units can also compile different questions along with
issues from different members of the staff, acquire the requisite information and inform the
same to the management (Chienwittayakun and Mankin 2015). In addition to this, the process
of monitoring in the firm Marl Moran Group can also include tracking alterations in
evaluation and occurrence and prevalence rates. As rightly put forward by Ovchinnikov et al.

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(2015), the management of MMG can take into account formulation of information loop
closed by the implementation unit.
Analysis of strategic management cycle and leadership role of professional accountants
Strategic management cycle that is considered to be a comprehensive approach can leverage
specific principles of the aged care unit MMG. The management of the business enterprise
can undertake the following steps for carrying out thorough analysis of strategic management
cycle (Bromiley et al. 2015).
Assessment of present performance
Strategic management procedures of the upcoming year start with a stock taking practice of
present year’s performance. Majority of information needs to be associated to present
performance and need to be willingly available (Pavlatos 2015).
Scanning of internal environment
Internal environment plays a critical role in attainment of success. Leaders of MMG need to
undertake internal challenges. Internal scanning can help in understanding different
alterations in competencies/set of skills and competencies, models of operations, associate
satisfaction, reasons of attrition together with barriers of technology and many others. In
essence, the best way to undertake scan MMG’s internal environment is by means of proper
research of requisite information, different interviews and discussions carried out in focus
groups (Aghazadeh 2015).
Scanning of external environment
External environment also plays an important role in attainment of success. Examination of
external environment can be considered to be an evolved operation in different business

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enterprises. Also, there are different industry research units, subject matter specialists, analyst
assertion, secondary information research, commission studies carried out by business
enterprises and many others (Pavlatos 2015).
Creation of SWOT
The management of the firm can utilize the management tool that is SWOT. This strategic
management tool is quite simple and at the same time powerful. SWOT can help in
discovering factual information, help in regular updating and need to be undertaken with
engagement of different stakeholders.
Strength
- capabilities of the institution and different cost
advantages
-High reputation
-Superior location
-Innovative service (Bromiley et al. 2015)
Weakness
- Absence of plans of marketing
- Availability of novel technologies
- vulnerabilities of varied competitors
- Limited presence in varied emerging markets
Opportunity
- Lack of stiff competition
- Various segments of market that offer enhance
profit
- Alterations in profile of population
- With increased focus on aged care and their
health care, this company has the opportunity to
get expanded to different geagraphies
Threat
- Economic shifts
- Increased level of competition
- Changes in demand of market
- Seasonality (Bromiley et al. 2015)
- Loss of important staffs

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Formulations of goals as well as strategies
The actual truth regarding strategic schemes is that there exist no real strategies. An
appropriate strategic scheme can be framed by means of using exclusive strategies derived
from outcomes of SWOT (Ovchinnikov et al. 2015).
Ownership
At the time when objectives are properly finalized, exclusive owners for each and every goal
need to be assigned by the management of MMG.
Identification of strategic projects
The organization can select and run restricted number of strategic projects. Management of
the firm can select the prioritized projects, fund, sponsor and resource them.
Surging of strategies
Strategies can be cascaded to essentially grass-root level. In essence, this occurs by means of
employment of strategic schemes. Strategic plans can be cascaded to organizational strategic
scheme (Chienwittayakun and Mankin 2015).
Progress Meeting
Leaders of each and every strategic project need to have a definite project plan. There need to
be weekly meetings that can be chaired by leaders of the project.
Monthly Strategic Assessment
Monthly strategic assessment can be undertaken by the leadership team that can generate
strategic schemes. This can assess advancement of each strategic project as leader of each
and every project can make a presentation (Hill et al. 2014)

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Quarterly Strategic Assessment
A specific quarter can substantiate if the subsisting strategies and strategic projects are
relevant regarding active internal as well as external environment. In case if some of them
needs to be altered, then those decisions can be considered in this meeting (Kaplan and
Atkinson 2015).
Leadership Role of Professional Accountants
Competent accountancy professionals can help corporate stratagem, deliver suggestion and
aid business to lessen costs, enhance top line and alleviate risks. Professional accountants can
become defender of public interest and manage competing demands. Multifaceted role need
to be taken up by professional accountants and there is need to discuss the duty (Piercy
2016). As a specific profession that has been conferred a privileged position in community,
accountancy profession on the whole deals with a extensive range of issues that has a public
interest angle.
It is important for different accountants to act as leaders. In this regard, it can be said that
professional accountants of the institution have the need to exercise leadership in a bid to get
different jobs done. The ultimate role undertaken as a specific leader is to acquire results and
to facilitate effectual delivery of service in MMG. In this context, it can be said that leaders in
the area of accounting have the need to observe diverse principles of both constitutional as
well as parliamentary oversight. Essentially, there is need to provide accountability and
uphold the regulation of the law and comprehend different components that includes being
fair, reasonable and just in different dealings together with operations (Larson et al. 2014).

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Role of organization, industry value chain analysis and application
The primary objective of the company Mark Moran Group (MMG) operates in the segment
of aged care and healthcare area. The role of the organization is to be present a leading health
as well as aged care design. The organization MMG has an opportunity to generate an
exclusive model oriented to customers, which is lacking in the segment and combining three
different conventional industry segments of aged care, home care as well as retirement
villages. Thus, it can be said that the organization has a specific aged care system that can
offer extensive range of options to satisfy diverse care requirements of each and every
individuals (Carnall 2018). Also, there is desire of different older people to stay in own
homes since the age has led towards mounting concentration on provision of aged care
services.
Value chain analysis of the organization as defined by participants of workshop can be
considered to be far longer and overarching than the value chain.
The framework of the value chain in aged and healthcare is multifaceted. There are three
different important sets of different actors and two different sets of mediators. The three key
clusters of actors are essentially individuals as well as institutions that buy healthcare, deliver
healthcare services, and generate healthcare products (purchasers, providers, as well

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as producers) (Bryson 2018). There are two different clusters of intermediaries that can
disconnect these important actors. These kinds of firms fund healthcare (proffer insurance to
the different purchasers and manage reimbursement to different providers) and the ones who
undertake bulk buy and dispense products (from different producers to their providers).
Analysis of characteristics of effective strategies and CSR associated performance
measurement and control systems
In case of Mark Moran Group, one of the most significant issues in management control is
basically controlling. There is issue with magnitude of alteration in the operations and the
present system of control fails as management of the firm fails to correct different alterations
in operations. Also, there also exist faulty systems of standards. In essence, this becomes
difficult to differentiate between proper as well as improper levels of performance of MMG.
Further, there is excessive information that also becomes difficult to control (Rothaermel
2015). At the time, when different managers at different levels accept identical information,
there can be overburden of information. Management of the firm has the need to decide
overall quantity and type of information that must reach to each and every manager. In
addition to this, members of the staff often take into consideration systems of control as a
specific device to exert pressure on management (Robson 2015).
Corporate social responsibility can be divided into four different divisions of levers of
control. In case of belief schemes, CSR can be integrated into value proposition, statements
of mission otherwise value. Furthermore, in systems of boundary, CSR can be specific
divisions of business conduct codes and systems of strategic planning.