Globalization and Management Accounting in Germany: A BMW Case Study

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Research Project
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Table of Contents
Topic: “To identify the influence of Globalization and management accounting in Germany”. A
case study on BMW.........................................................................................................................1
INTRODUCTION...........................................................................................................................1
LITERATURE REVIEW................................................................................................................3
RESEARCH METHODOLOGY.....................................................................................................4
REFERENCES................................................................................................................................5

Topic: “To identify the influence of Globalization and management accounting in Germany”.
A case study on BMW.
INTRODUCTION
Globalization is one of the primary economic processes of interaction that is related with social
and cultural aspects. It is all about how countries like Germany are coming together as a wide
international economy through making global trade simple. In 20th century, various nations is
agreed to minimum tariffs or taxes on different products that are imported from other countries.
Management accounting is valuable procedure which is used to create, use cost, quality and time
related information within an organisation that can help the company to make reliable decision.
The organisation is needed to play crucial part for management accounting to be effective among
them as internal audit department (Brandau and et.al., 2013). In the present era, globalization,
businesses has basically affected the policy framework in which company operates. There are
certain complication of globalization and require to thrive in international market. Management
accounting has been integrated to different units of organisation to ensure proper realization of
the set goals. Accounting has been considered as one of the key aspects that can help in
managing the resources and various transactions that are done by organisation in their regular
course of business operation. The change of role in accounting has begun from 1980 when
practice of globalization was entirely entrenched in economies. The flow of data across national
boundaries has become more thorough. By the change, globalization has become more effective
in local as well as economies level (Schäffer, 2013). Thus, influence of changes in management
accounting has wider role in management. In relation to the business, they always want to remain
long time in the market and increase their sources of earning in near future. Globalization has
been lead to enhance competition and because of latest technology business is needed to get data
to stay on a competitive boundary.
Background of the company
BMW (Bayerische Motoren Werke), is one of the leading German automobile manufacturing
company which was established in 1916. It is responsible for producing mini automobiles and its
parent industry of Rolls-Royce cars. The company is having 22 factories in all around 12 nation
one of these is situated in USA. BMW has been made a wide step through developing a factory
in the various parts of the country. However, it is important fact that labor market is developing
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at faster rate. It would attract a wide number of companies to operate their factories with their
appropriate skills and capability. It has been providing an clear image for mobility development
over the next two decades. It has been associated with local society that can help them to
maximise their impacts in coming period.
Research Aim: “To identify the influence of Globalization on management accounting in
Germany”. A case study on BMW
Research objective:
 To analyse the concept of globalization in Germany
 To identify the significance of management accounting on globalization in Germany
 To ascertain the impact of globalization on management accounting
 To determine relationship between management accounting and globalization
Research Question
Q1: Explain the concept of globalization?
Q2: Access the importance of management accounting of globalization in Germany?
Q3: What is the impact globalization on management accounting?
Q4: How globalization and management accounting are related to each other?
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LITERATURE REVIEW
In conducting any specific research, literature review is a crucial ways to express the views of
various authors towards the related topic or areas. It consists of present knowledge that is related
to substantive outcome as well as theoretical and methodological aspects to a particular topic.
Concept of globalization
According to Hitt, Ireland and Hoskisson, (2012), globalization is an essential process of getting
interacted between people and companies at international level. It has been grown because of
advance in transportation and use of technology in respect to the given situation. It will assist an
organisation to build relation that can come of global trade, innovation and culture.
Importance of management accounting and globalization in Germany
In the view point of Wickramasinghe and Alawattage, (2012), Cost and management accounting
are worked together in a business to record and analyse the overall transaction that are made by
company during the time. It will help the managers of an organisation to prepare various kind of
reports by using reliable system of accounting so that chances of accuracy can be maintain in
their regular course of operation. It would also assist in making right decision in relation to attain
sustainability for long time.
Impact of globalization on management accounting
It has been seen that with the movement toward global era, the changes has been brought on by
it could modify how companies are using various accounting systems in their daily operations. It
has increase maximum competition for the firm within the nation. Henceforth, management
accountant are more valuable for the company as they are responsible for making effective
decision on the basis of the performance.
Relationship between management accounting and globalization
In accordance to Czarniawska, (2012), most of the companies are looking to hire skilled cost
accountant to prepare various types of accounting statements. The majority of qualified
accountant work in terms of finance to provide all kind of decision and profitability chances in
national level. Globalization has been primary aspect for any business organisation because they
mostly rely on their financial performance or strength before moving to the international market.
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RESEARCH METHODOLOGY
It has been seen the in order to analyse the research a well organise methods has been taken into
account. It is an essential process which is used to gather information and data for the objective
of making right decision in favour of the company.
Types
Quantitative research: It relies on overall measurement of quantity of material that has been
collected from the research work.
Qualitative research: It is simply associated with quality aspects such as all the facts that has
been determine has must be some quality in them.
Design:
Descriptive design: These types of design are basically used to analyse the surveys and
searching fact of various kinds of resources. It is related to the description of the state of affairs
as it was present in the detail form (Madu and Kuei, 2012).
Explorative design: This research is associated with a problem that has not being taken into
account while study the material. It improves the final research design that has been made by the
researcher.
Methods of data collection
Primary: This method is basically considered as fresh data which is collected for the first time
in a research project. Some of them are interviews, questionnaires and so on.
Secondary: This research data collection method is used in case of already publishes
information which has been used by the company for analysing the research outcomes such as
chart, articles and numerical information.
Ethical consideration
In any research ethics are considered as one of the key standards that have been used to conduct
variation among right and non-reliable matters. It would assist in examine the changes which are
acceptable as per the behaviour of the facts and figures collected from the research project.
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REFERENCES
Books and Journals:
 Brandau, M., and et.al., 2013. Institutional drivers of conformity–Evidence for
management accounting from Brazil and Germany. International Business Review. 22(2).
pp.466-479.
 Czarniawska, B., 2012. Operational risk, translation, and globalization. Contemporary
Economics. 6(2). pp.26-39.
 Hitt, M.A., Ireland, R.D. and Hoskisson, R.E., 2012. Strategic management cases:
competitiveness and globalization. Cengage Learning.
 Madu, C.N. and Kuei, C.H. eds., 2012. Handbook of sustainability management. World
Scientific.
 Schäffer, U., 2013. Management accounting research in Germany: From splendid
isolation to being part of the international community. Journal of Management
Control. 23(4). pp.291-309.
 Wickramasinghe, D. and Alawattage, C., 2012. Management accounting change:
approaches and perspectives. Routledge.
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