Strategic Management Accounting: Analysis of Sydney Light Rail Project

This report offers a strategic management accounting analysis of the Sydney Light Rail project, focusing on its strategic policies, key aspects, and net present value evaluation. It summarizes the project's broad strategic policies aimed at enhancing transportation and boosting the economy, highlighting its role in connecting previously isolated areas and reducing reliance on private vehicles. The report identifies two key aspects: increasing mobility and developing an advanced railway system, evaluating their operational, financial, and environmental impacts. It discusses the costs and benefits, including labor, maintenance, economic growth in suburban areas, and the creation of a more organized city with an efficient public transport system. The analysis concludes that the project's benefits outweigh the costs, contributing to urbanization and economic development. The document includes references to support its findings and is available on Desklib, where students can find similar reports and study resources.

SYDNEY LIGHT RAIL PROJECT
CPA STRATEGIC
MANAGEMENT
ACCOUNTING

Introduction
●The following power point presentation will
include info about the strategic policies that
were highlighted by the selected project. It
will consist of the strategic aspects and will
evaluate the importance of it. NPV and
other values have been well understood in
the following work

Summarizing the project
●The broad strategic
policy will ensure an
effective
transportation within
the city that will
increase the pace at
which the city runs
and ultimately boost
the economy (Otley,
2016)

Continued...
●The system will
connect parts of the
city that had no
direct transportation
modes between each
other, thus
decreasing the load
of other modes of
transportation.

Continued…
● The agenda of this project
is to ensure effective
transportation and better
connectivity between
different remote areas.
The City of Sydney along
with its suburbs covers a
large area and all these
areas did not have direct
transportation options
between them, this project
aims at solving this
problem (Ambrosini et al.
2015)

Continued...
●The train system will
decrease the use of
private vehicles by the
people which will
ultimately decrease the
carbon footprint of the
city as a whole. The
city has already
projected that by when
this project will
become fully functional
the use of private
vehicles in the city will
decrease by half.

Continued…
●The project focuses of bridging the gaps between
the urban and suburban areas of the city and
boost economic growth of these areas. Remote
suburbs that are not well connected to the
metropolitan area of the city lack economic
infrastructure. The project aims at urbanising
these areas. The city projects that property
prices will double in the areas that lie in the
vicinity of stations of the project.
●Though authorities have been questioned on
clearing green areas in the city for the purpose of
construction the have assured the public the cost
is far the less than the benefits this service will
reap.

Two key aspects of the project
●The two key aspects of the project have been
identified on the basis of evaluating element
like operational, financial and environmental
factors.
●The efficiency of the project when operational
has been discussed and the expectations are
high as the authorities have promised that
this project will increase the mobility of life in
the city substantially (Hiebl, 2014).

Continued…
●The financial gains and environmental factors
have also been taken into consideration and
the projection shows that the pros outweigh
the cons by a substantial margin (Fullerton et
al. 2014).
●The key stakeholders in this project are the
people of Sydney, and the government of
Sydney will be held accountable for the whole
project and the extent of its success
(Carlsson-Wall, Kraus and Lind, 2015)

1st aspect: increasing mobility and the
pace of transportation in the city
●This is the primary objective of the project as
the project aims at connecting areas that
previously had no direct mode of
transportation between them and had to rely
on multiple modes of transportation or
private vehicles for transportation (Morden,
2016).
●The NSW has assured that project is taking a
strategic direction in which most of the
remote suburbs of the city that did not enjoy
mobility which in turn hurt their economy are
to be connected by these project.

Continued…
●The project promises to ensure commuters a
safe hassle free and pocket friendly mode of
transportation that is punctual.
●Though questions have rose regarding the
economic feasibility of the project if the fares
are kept low but the authorities have
predicted that as substantial of commuters
who will be travel by the service will ensure
reasonable profit (Stead and Stead, 2014).

2nd aspect: Development of an
advance railway system
●The second objective that the city aims to achieve
with this project is an innovative mode of
transportation that will change the way people
think about public transportation i the city.
●The project aims to become a technological
innovation in the country. It will use the most
advanced tools and technology that the city has
at its disposal (Chiarini and Vagnoni, 2015).
●The current scenario of public transport in the
city is vulnerable and lacks discipline. This
project aims to fix this situation and ensure that
the public has an effective option of public
transport (Renz, 2016).