ACC203 Management Accounting: Competitive Support & Qantas Analysis

This report assesses management accounting practices, focusing on compliance, control, and competitive support factors, with a particular emphasis on the increasing importance of competitive support in modern business. It evaluates the usefulness of the Balanced Scorecard (BSC) as a strategic tool for creating and communicating strategy. The report also includes a case study analysis of Qantas, identifying critical success factors (CSFs) and key performance indicators (KPIs), constructing a strategic map, and developing a balanced scorecard tailored to Qantas's long-term objectives. The analysis uses data from Qantas's most recent annual report to provide practical insights into the application of management accounting principles in a real-world context. Desklib provides access to a variety of study resources, including solved assignments and past papers.

ACC203 Management Accounting
Term 2
Major Assignment

Table of Contents
Part A...............................................................................................................................................3
Introduction..................................................................................................................................3
Controlling and Compliance factor of management accounting.............................................3
Competitive support factor of management accounting..........................................................4
Usefulness of Balance score card (BSC).................................................................................4
Conclusion...................................................................................................................................5
Part B...............................................................................................................................................5
1. Identification of Critical success factors and Key performance indicators of Qantas............5
2. Strategic map...........................................................................................................................6
3. Balance score card for Qantas.................................................................................................6
References........................................................................................................................................8

PART A
Introduction
In recent times, it has supposed that the management accounting has essential; the reason
behind this is that the style of doing business has modified and the organizations become
more dependent on financial data (Shields, 2015). Well-organized accounting practices
helped in enhancing the whole decision-making process in organizations by giving them
improved financial analysis and long-term insights. The present investigation aims to assess
the compliance, control and competitive support factors of management accounting practices.
In this study, different factors will be discussing that have contributed to the development of
Management Accounting Practice along with assessing the usefulness of a Balanced
Scorecard.
Controlling and Compliance factor of management accounting
The function of controlling in management accounting is attained by measuring performance,
actual performances are compared with budgets, and then taking into consideration at that
time when it is required. For analyzing the performance, managers utilize diverse approaches.
The company measured both the performance of the segment, product and performance of
managers and some other elements (Valmohammadi and Ahmadi, 2015). On the flip side of
the coin, the contingency factors contain the use of management control in analytical and
interactive manner, their active strain, service and size nature of organizations, however, its
inclusion in holding structure is the most competitive factor.
The compliance has been assessed with a stage of conducting practices in accordance with
established guidelines and regulations. The regulations of management accounting are
developed in order to guide an organization in making effective and successful accounting
practices. In recent organizations, compliance is a common business concern, partially due to
the growing number of rules and regulations that organizations needed to be alert concerning
to keeping an understanding of regulatory compliance necessities of accounting practices
(Shields, 2015). A few well-known principles, legislation, and regulations through which
organization might be required being in compliance while focusing towards gaining a
competitive advantage.
In present multifaceted global arena, particularly in the repercussion of the worldwide
financial crisis, a lot of competition for businesses within each industry is violent than ever
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before. Almost every organization, either it is private or public, large or small, profitable or
non-profitable organization, is working in an extremely challenging and in dynamic
surroundings, because the reason is the significance of achieving the competitive advantage
of management accounting has become enhanced(Langfield et al.2017).
Competitive support factor of management accounting
The present business environment is altering quicker than ever before, and the achievement
of the organization inside the marketplace is depended on the well-timed possession of
excellence information. Nonetheless, only the information is not sufficient, without any
appropriate interpretation of information. In modern years some of the companies which
focuses on the regular gathering of information on actions in the area with the strategic
management accounting is considerably rising. Competitive management accounting is a
mainly an essential source of information for getting a competitive advantage, and it is
widely supportive to the strategic management accounting (Ax and Greve, 2017).
In management accounting, the factor of competitive support has developed and depended on
the requirements of the study of opportunity and competition threats, and with the goal of
making sturdy information base used for making the appropriate strategic decisions and attain
the competitive advantages (Langfield et al., 2017). To create the superior strategic decisions,
and therefore attain the competitive advantage, it is required that management of company
utilized the wealth of information lying on related factors, which affects from the
environment, in addition to the actions in the organization. With no timely, pertinent,
trustworthy information on present and possible competitors, the modern company cannot
have more opportunities for existence and progress. To fulfil the environmental challenges
and make superior strategic decisions, a modern company should be familiar with the market
situation and its competition, i.e. it should comprehend the significance of the information
that is presented by the competitive support factor management accounting.
Usefulness of Balance scorecard (BSC)
The Balanced Scorecard (BSC) gives a powerful frame which is used for creating and
communicating strategy. The business model is imagined in strategy maps that force
managers to consider cause-and-effect-relationships. The procedure of building a Strategy
map makes sure that consensus arrives at the excess of a set of interconnected strategic
objectives. It simply means that both performance results and major enablers of future
performance (like as the intangibles) are well-known to create the full image of the strategy.
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Companies make use of this Balanced Scorecard tend to report performance and
communicate performance superior to organizations without this structured approach towards
the performance management (Kaplan et al., 2017). Growing requirements for better
transparency are able to meet only if the companies create significance management
dashboards and reports on the way to communicate performance externally as well as
internally. This approach forces the organizations to design the major performance indicators
for multiple strategic objectives. It makes sure that the organizations are measuring that what
matters are actual in the organisation to attain the performance. The findings support this
approach, as organizations tend to report the advanced quality of management information
and growing benefits from this information that is utilized to guide the management insights
and good strategic decision making, and it is possible only through the help of Balanced
Scorecard approach. While executing appropriately, every departments and separation must
bring into line with the general strategy, and Balanced Scorecard assists such process
(Hansen and Schaltegger, 2016). Through the help of BSC structure, the company can
connect the critical objectives to the parental company objectives. In addition, the BSC offers
the structure that is required at that time when the huge assignments are shared across various
divisions.
Conclusion
The herewith study has shown the importance of the competitive support factor of
management accounting which has sharpened its development in the modern era. In order to
attain improved performances, particularly in creating the company’s strategy, executing the
cost leadership strategy, and usually, in creating business and strategic and financial
decisions, it is important to become more competitive by using various tools of management
accounting. Thus, it is vital to note that in the modern business much greater emphasis is paid
on competitive support element of management accounting in order to achieve strategic
objectives, but other elements are simultaneously important. In the end, it can be mentioned
that the use of Balanced Scorecard tends to report performance and communicate
performance in the entire organisation.
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PART B
1. Identification of Critical success factors and Key performance indicators of Qantas
Critical success factors
Strong management: Qantas manages their administration strongly. They offer their best
facilities to the customer in the best possible manner. Thus, they have qualified their
executive to offer premium customer facilities.
Competent workforce: a competent workforce is the essential success factors at Qantas
Airlines. It is observed that these airlines have a diverse and capable person who work on
board. It is necessary to appoint highly competent and capable workers in the aviation
industry (Annual report of Qantas, 2018). They should have good communication ability and
the capability to take up liability if something goes wrong in the flight.
Route system: For all airline companies, Route system is the most reliable success factor. It
is mostly considered while flying and how regularly to fly at the destination. Qantas airlines
connect almost 186 destinations in 40 countries as well as in Australia and more than 120
other states or destinations
Efficient use of cost: Maximization of the profit by use of competitive pricing or innovation/
creativity can provide various cost-effective revenues. Efficiently supervising the costs and
considering price and effectual procurement of fuel can be considered as a significant factor
of success.
Key performance indicators
 Increasing EBIT and EPS
 Add remote routes to develop a network
 Improvisation in technology (Annual report of Qantas, 2018)
 Improvising safety standards and operational productivity
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2. Strategic map
Strategic Map
Financial
Customer
Internal business
process
Learning
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Low price strategy Optimum capital structure
Developing routes Developing customer base Low prices
Improvising operational efficiency
Training and development programs

3. Balance scorecard for Qantas
The BSC (Balanced Scorecard) is a Strategic planning and management system that is
utilized by the organizations for the attainment of long-term objective by aligning it with day-
to-day operations. With the help of this strategy, organizations prioritize the products,
services and objectives, and lastly, it measures and examines the development towards the
strategic targets (Keyes, 2016). Balance scorecard of Qantas Airways is as follows:
Balance scorecard
Factors Measures Initiatives by airlines
Financial Optimum capital
structure
Low price strategy
Increase in profits and
revenues
Optimum financial cost
Monitoring debt and
equity to optimise
financial cost
Customer Developing routes
Developing customer
base
Low prices
Considering feedback
for analysis their
satisfaction
Low pricing strategy
Adding remote areas to
routes
Internal
business
process
Improvising
operational efficiency
Improvisation in
productivity
New technologies
Working on
productivity
Learning Skilled workforces Reduction in
operational issues
Training and
development program
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REFERENCES
Annual report of Qantas, (2018). [Pdf]. Available through <
http://investor.qantas.com/FormBuilder/_Resource/_module/doLLG5ufYkCyEPjF1tpgyw/
file/annual-reports/2018-Annual-Report-ASX.pdf >. [Accessed on 24th September 2018].
Ax, C. and Greve, J., (2017). Adoption of management accounting innovations:
Organizational culture compatibility and perceived outcomes. Management Accounting
Research, 34, pp.59-74.
Hansen, E.G. and Schaltegger, S., (2016). The sustainability balanced scorecard: A
systematic review of architectures. Journal of Business Ethics, 133(2), pp.193-221.
Kaplan, R.S. and Norton, D.P., (2017). The balanced scorecard—measures that drive
performance. Havard Bus Rev.
Keyes, J. (2016). Implementing the IT balanced scorecard: Aligning IT with corporate
strategy. Auerbach Publications.
Langfield-Smith, K., Smith, D., Andon, P., Hilton, R. andThorne, H., (2017). Management
accounting: Information for creating and managing value. McGraw-Hill Education
Australia.
Shields, M.D., (2015). Established management accounting knowledge. Journal of
Management Accounting Research, 27(1), pp.123-132.
Valmohammadi, C. and Ahmadi, M., (2015). The impact of knowledge management
practices on organizational performance: A balanced scorecard approach. Journal of
Enterprise Information Management, 28(1), pp.131-159.
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