Strategic Management Accounting: Mark Moran Group Analysis, MAC007A

This report provides an analysis of strategic management accounting principles within the context of the Mark Moran Group (MMG), an Australian aged care and retirement living provider. It explores enhancing the value chain using tools like VRIO analysis and the McKinsey 7s framework, examines techniques for developing, implementing, and monitoring strategies, and analyzes the strategic management cycle, highlighting the leadership role of professional accountants. The report also defines the role of organization and industry value chain analysis, applying it to value-adding activities, value drivers, and value chains within MMG. Furthermore, it analyzes the characteristics of effective strategic and corporate social responsibility-related performance measurement and control systems, and describes the application of strategic management accounting techniques to project selection, planning, implementation, control, and monitoring. The report concludes by referencing Fayol's five functions of management, providing a comprehensive overview of strategic management accounting in a practical setting.

Running head: STRATEGIC MANAGEMENT ACCOUNTING
Strategic Management Accounting
ASSIGNMENT MAC007A
Trimester 3, 2018
Student’s Name:
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Table of Contents
Introduction......................................................................................................................................2
Enhancing value chain within the organisation with strategic management tools..........................2
Examining and apply the techniques for developing, implementing and monitoring strategies.....3
Analysing the strategic management cycle and the leadership role of professional accountants in
strategic management......................................................................................................................5
Defining the role of organisation and industry value chain analysis and apply the analysis to the
design and structure of value-adding activities, value drivers and value chains.............................8
Analysing the characteristics of effective strategic and corporate social responsibility related
performance measurement and control systems............................................................................11
Describing and apply strategic management accounting techniques to the selection, planning,
implementation, control and monitoring of projects.....................................................................12
Five functions of Management by Fayol.......................................................................................13
Conclusion.....................................................................................................................................14
Reference List................................................................................................................................15

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Introduction
Strategic management accounting is related to mainly external information of the
competitors, current trends, policies which may affect the market and shares and costs
(Dashtbayaz, Mohammadi & Mohammadi, 2014). Mark Moran Group is one of Australia's
innovative and prestigious aged care and retirement living place. Ansell Strategic is a
professional advisor to the retirement living sector and aged care in Australia. Ansell Strategic
has been engaged to work with MMG to improve the condition regarding architects and builders
to create a contemporary living. This paper focuses to improve key service area of strategic
management accounting like value chain, corporate social responsibility, leadership and control
and monitoring of projects.
Enhancing value chain within the organisation with strategic management tools
The value chain of an organisation is associated with a set of activities to deliver valuable
services and products. Value chain has the objective to recognise the activities which are most
valuable for the organisation and improving the value chain provides a competitive advantage to
the firm (Paras, Pal & Ekwall, 2018).
VRIO analysis
VRIO analysis is a technique to evaluate the resources of the organisation and it provides
a competitive advantage of the organisation. The resources of the organisations must provide
value, rareness, imitability and organisation (Charzoglou et al., 2018). Ansell Strategic provides
support to Mark Moran Group to develop MMG as Mark Moran Vaucluse. MMG (Mark Moran
Group) is famous in retirement living and residential aged care and it is striving to make

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contemporary living space for people. Human resources of MMG provide strength as the human
capital includes the experience, training and intelligence of the employees. Financial resources of
the organisation are the financings, invoicing, royalties and assets. Physical resources of MMG
are the tangible goods like building, equipment, physical technologies and geographical location.
Finally, organisational resources of MMG are associated with the organisational structure of the
organisation and internal and external relationship.
McKinsey 7s Framework
The value chain can be enhanced by observing 7 key internal strengths to identify the
objective of the organisation. McKinsey 7s framework aligns and allows improving the value
chain of the organisation. The strategy of MMG is to achieve competitive advantage to compete
in the market. MMG wants to create a new vision uplifting younger and longer environment.
Structure refers to the way units and business divisions include the information. Systems
procedure reveals the business activities which determine the process to do the business
(Channon & Caldart, 2015) Skills show the ability to include competencies and capabilities of
the employees. MMG shows the skills of the company which needs to reinforce new strategy and
structure. Staffs of MMG are skilled and they are concerned with their responsibilities. The staffs
of MMG are motivated, rewarded and trained. Style shares the way an organisation is managed
by top level and management style is ruled by the company's leaders. Shared values are the
norms and standards which guide the employees’ behaviour and organisations’ actions.

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Examining and apply the techniques for developing, implementing and monitoring
strategies
Mark Moran Group can set the monitoring plan and it would a long-term plan for
addressing the platform performance. The monitoring plan is essential for acquiring the most
benefit out of the monitoring data. If MMG implements strong monitoring practice, it would be
easier to resolve disruptions of services. As stated by Mudambi & Puck (2016), business
organisations generally include and identify the major stakeholders in the monitoring strategy in
the primary stage and stakeholders of the organisations are associated to the quality assurance,
IT, developers, owners and managers. Ansell Strategic can advise MMG to establish a secure
platform which would be helpful to monitor within the mobile application and website. This
platform can include transaction, viewing content and perform a search to determine the most
common tasks to be monitored. Before developing the plan, the management team sets the
performance benchmark which is also helpful to determine the criteria of the organisation
(Chiarini & Vagnoni, 2015). MMG and Ansell Strategic can also establish the job to handle each
part of the monitoring and process of evaluation.
First of all, MMG and Strategic Ansell can determine the organisational structure and
process for implementing, communicating and evaluating the work process. In developing the
action plans of the organisation, the management designs the specific objectives and activities.
Before implementing any strategy, the organisation can also check the necessary and available
resources which are to be identified. In the implementation stage, MMG needs to refine the
action plans to identify the opportunity for combining and coordinating the resources. The
committee needs to look for collaboration and opportunities to clarify the roles of the participants
(El-Sayed, Dickson & El-Naggar, 2015). In the final stage, Ansell Strategic evaluates the

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implementation of strategies which assess the activities and progress toward meeting the goals in
action plans.
Lastly, to monitor the strategies of MMG to contribute towards growth and prosperity,
successful alert management strategy can provide MMG competitive advantage. Successful alert
management strategy will be helpful for MMG to consider as it defines and adjust alert for
optimal use and management will create criteria for alters which actually matter and it follows
typical use.
Analysing the strategic management cycle and the leadership role of professional
accountants in strategic management
Mark Moran Group respects elders as the leaders, as the mentors and the guardians of the
culture. Benefits of retirement accommodation are related to the level of care that the persons
need. In high care residential care helps to accommodate people who are unable to look after
themselves. Strategic Ansell can plan the strategic management cycle and this cycle has four
elements into it; strategy formulation, implementation, planning and review. Strategy
formulation defines the objectives of MMG and it is the set of objectives where the company
wants to reach. MMG can do the horizontal scanning as it helps to look externally and internally.
The organisations need to understand who the competitors are and how the partners of the
organisations respond to strategic planning (Rotharmel, 2015). Before formulating the strategy
for the organisations; the management must look into the political, legal, economic and
technological factors which are associated with the industry. Within the strategy formulation,
Strategic Ansell can brainstorm to gather people from different elements. MMG will have the

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purpose to think creatively so that the people can come up with the ideas to move the
organisation forward.
In the planning step, MMG management can define the direction which is built into the
governance framework of the organisation. Strategic Ansell can help MMG to specify the broad
aim of the organisation to set the action plan so that the staffs can enact. Strategic aims of MMG
are to improve the individual needs, lifestyle priorities and expectations when they are getting
old. Planning helps to translate top-level strategy so that the staffs can do the actionable
activities.
In the implementation step, the management and staffs enact to perform their best. In the
implementation step, the staffs work based on the action plan and the real work happens. Real
world problems arise during the implementation plan and the people need to manage this
(Howieson et al., 2014).
In the final review step, it is a perfect time; the management can decide where the
organisation wants to be in the future. Strategic Ansell can suggest understanding the external
viewpoint to achieve the desired state. In the review phase, the organisation needs to understand
what has been performed in the past and what is to perform in the future. The management can
review what they learnt during the process and how the captured knowledge can be used in the
future (El-Sayed et al., 2015).

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Figure 1: Strategic Management Cycle
(Source: Renz, 2016)
Within MMG, the leaders play the role of communication medium between upper
management and employees. Strategic management and its implementation start with setting the
goal and reaching the objectives. The leaders help to prioritise the objectives and they transmit
the vision to the team members. The leaders within an organisation also give out the tasks to the
team members and the leaders sometimes to pick out the teams and people to move the project
forward. The leaders also monitor the execution process to implement the strategies. The leaders
ask questions to the employees to understand all the process involved in this. The leaders ask the
employees about the progress update. Leadership process is associated with encouraging the
staffs to work better and encouragement needs consistency as the leaders must be energetic to
provide the best to the organisations.
StrategyformulationPlanningImplementationReview

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The importance of professional accountants lies in the importance of ensuring the better
quality financial report which cannot be emphasised. Professional accounting is important in
strategic management as the professional accountants come in the forefront to safeguard the
integrity of financial reporting (Turner et al., 2017). MMG will be benefited by the competent
professional accountant as they create the basis of knowledge of the organisation’s financials.
Professional accounts use their skills and understanding of the organisation; they try to operate in
business understanding the challenges. Financial leaders have the oversight of the matters which
are related to the organisation’s financial health (Hill, 2017). Strategic Ansell can ask MMG to
recruit internal auditors to have the independent assurance so that they can have the internal
control of the process.
Defining the role of organisation and industry value chain analysis and apply the analysis
to the design and structure of value-adding activities, value drivers and value chains
As stated by Mishra & Mohanty (2014), the value chain is the set of activities which an
organisation carries out to make value for the customers. The management of an organisation
examines all the activities of the organisation so that the organisation must be connected to the
customers. In addition, the value chain is the activities of the firm operating in an industry
perform to deliver the valuable service or product for the market to the customers. Industry value
chain assists to analyse the internal activities of the organisation which engages the firm to
produce and make services and goods. The value chain is created through primary activities
which may add value to the final services and products directly and the organisations also do
support activities which may add value indirectly (Hishe, Asfaw & Giday, 2016).
Value chain analysis

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The value chain of aged care and residential home consists of payers, providers and
producers (Grant, 2016). For, MMG, payers are the government, insurance companies and
individuals who pay for their expenses in an aged care home. Providers are the staffs and nurses
in MMG along with specialities and pharmacies. Producers in MMG are the companies which
manufacture the medicines and equipment which are used in the aged care home like MMG.
Primary activities:
 Primary activities are associated with admission in MMG, admission activities are
associated with the emergency room, pay treatment room, admitting and out-care
department.
 Care activity in MMG is related to the clinical evaluation, diagnostic tests of the aged
people, treatment and referral of the patients. In addition, marketing and sales activities of
MMG are related to the services to the aged people and it is related to pricing.
 Marketing and sales are done by the insurance. MMG does the social media
advertisement and the website campaigning to reach mass audiences.
 Services provided by MMG are the ambulance service, innovative residential care home,
professional advisor of aged care, contemporary local designing, monitoring of the aged
people and follow-up services and the health education to the aged people.

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Figure 2: Value chain analysis of Mark Moran Group (Primary activities)
(Source: Self-developed)
Support activities
 Aged care administration in MMG is related to the department of The Board of Directors,
Medical Dictator, Chief Nurse and Chief of Clinics.
 Information Services are associated to the Admitting and information along with Billing
and Collection and Customer Service.
 Diagnostic and Therapeutic Services provided by MMG are the laboratory and diagnostic
imaging centre and Emergency medicine.
 Aged care support services in MMG are related to the property and central supply,
purchasing and procurement process. Aged care activities are related to the maintenance,
housekeeping and security services.

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Figure 3: Value chain analysis of Mark Moran Group (Secondary activities)
(Source: Self-developed)
Value-adding activities
Value-adding activities of MMG are related to the physical therapy and medical
psychiatry of the aged care. MMG does social inclusion along with social networks and it
provides peace of mind to the aged people.
Value drivers
Value drivers of MMG are the philosophy of the organisation which provides
maintenance-free living. The aged people who live in the residents also get the fresh and healthy
food. Value drivers of MMG are well-articulated service facility, configured network to have the
integrated services, contracting structure of value proposition and value-based services. The
major programmes focus here on the physical wellness of the aged people and it also focuses on
community as well.