Strategic Management Accounting for Regis Healthcare Limited Report

This report delves into the realm of strategic management accounting, focusing on its application within Regis Healthcare Limited. It begins by defining strategic management accounting and value chain analysis, highlighting their importance for organizational innovation. The report then explores various strategic management tools and techniques applicable to Regis, emphasizing education, communication, prioritization, and leadership. It outlines a step-by-step approach for strategy development, implementation, and monitoring. The strategic management cycle is explained, along with the role of professional accountants. The report further analyzes the importance of organization and industry value chain analysis for competitive advantage. It examines the characteristics of effective strategies and corporate social responsibility (CSR) in performance measurement and control systems. Finally, the report details four key strategic management accounting techniques: benchmarking, balanced scorecard, value chain analysis, and target cost management (TCM), providing a comprehensive overview for planning, implementation, control, and monitoring of projects.

Running head: STRATEGIC MANAGEMENT ACCOUNTING
Strategic Management Accounting
Name of the Student
Name of the University
Author’s Note

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Table of Contents
Answer to Question 1......................................................................................................................2
Answer to Question 2......................................................................................................................3
Answer to Question 3......................................................................................................................4
Answer to Question 4......................................................................................................................5
Answer to Question 5......................................................................................................................6
Answer to Question 6......................................................................................................................7
References........................................................................................................................................9

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Strategic Management Accounting is considered as a combination of strategic business
objectives with management accounting so that forward looking business model can be used. On
the other hand, Value Chain refers to the specific processes or activities that help the business
organizations to add value to the products and services of the organizations so that they can add
value to the customers. For this reason, value chain is considered as a major strategic tool for
organizational managers. Thus, in order to be innovative and creative, Regis Healthcare Limited
needs to apply the strategies of strategic management accounting and value chain.
Answer to Question 1
There are some specific strategic management tools and techniques and these tools helps
in the enhancement of value chain of the business organizations. These tools are applicable for
the enhancement of the value chain of Regis Healthcare Limited. They are discussed below:
Education: It is the responsibility of the management of Regis to provide education to all the
organizational people about the value chain. This common understanding helps to enhance the
performance of organizational value chain (Antràs and Chor 2013).
Communication: The management of Regis needs to implement effective communication
channel so that all the information related value chain can be reached to every level of the
company. This aspect ensures the success of value chain.
Prioritization: Based on the value chain information analysis, the management of Regis needs to
prioritize the specific activities in value chain. This process will improve the performance of
organizational value chain (Elms and Low 2013).

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Leadership: The management of Regis need effective leaders for the identification and
implementation of poorer skill set for the effective functioning of organizational value chain.
This is one of the major ways to enhance the performance of the value chain.
Figure 1: Porter’s Value Chain
(Source: Antràs and Chor 2013)
Answer to Question 2
Regis Healthcare Limited requires to apply the following techniques for the development,
implementation and monitoring of strategies.
Step 1: In this step, the managers of Regis are required to consider the structure of their
organization in order to measure the appropriateness of strategies for the company. This is an
important stage in strategy implementation process (Bass and Dalal-Clayton 2012).

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Step 2: In this step, the managers of Regis are required to review the action plan for strategy
implementation. Here, the managers are required to establish measurable objectives for the
strategy. In addition, roles and responsibilities are allocated among various organizational
members for strategy implementation.
Step 3: After the review process, the managers of Regis are required to start the implementation
process of the strategies. The implementation committee needs to communicate with
organizational managers for conducting smooth implementation process (Bass and Dalal-Clayton
2012).
Step 4: In this process, the performance evaluation of strategies are done. The management of
Regis is required to review the strategies for performance evaluation.
Answer to Question 3
Figure 2: Strategic Management Cycle
(Source: Hill, Jones and Schilling 2014)

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The above figure shows that there are three major steps in Strategic Management Cycle.
The first process is planning. Planning includes the planning and development of organizational
strategies. The second process is execution. In this process, organizational managers start the
implementation process of the developed strategies. This is the most important part in the
strategic management cycle. The last stage is monitoring and progress evaluation. In this process,
the implementation process is reviewed along with the performance of strategies.
In the process of strategic management, professional accountants play an important part.
Professional accountants help in dealing with the issues related with public interests in the
organizations. In addition, professional accountants analyze and evaluate various financial and
accounting aspects that are of great importance in the process of strategic management. Apart
from this, professional accountants help the companies to up to date with various rules and
regulations of the changing business environment (Wheelen and Hunger 2017).
Answer to Question 4
Organization and industry value chain analysis have a crucial role to play in
organizational success. With the help of value chain, the management of Regis will be able to
analyze their own business along with competitors. From this, the company will be able to get
necessary competitive advantages. In addition, it is helpful for Regis to identify the
organizational issues related with customer value. On the other hand, value chain helps in
comparing the business model of Regis with their competitors (Schmeisser 2013).

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Figure 3: Roles of Value Chain Analysis
(Source: Schmeisser 2013)
Thus, based on the above analysis, it can be said that the managers of Regis need to
develop the value adding activities and value derivers in such a way so that they can be able to
add value to the customers of the company. Thus, at the time of developing the value chain
activities of Regis, the organizational managers need to consider all these factors as the success
of value chain largely depends on it.
Answer to Question 5
Effective strategies and corporate social responsibilities (CSR) have some special
characteristics that help in the process of performance measurement and control system. In case
of effective strategies, they are required to be measurement centric, as it will help in measuring
the performance of employed strategies. After that, effective strategies help in leveraging ideas
ComparisonofBusinessModelIdentificationofOrganizationalissues

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in different level of business. Effective strategies are considered as the major resources of
organizations because of their problem solving abilities. On the other hand, various CSR
activities states that business organizations have utmost responsibilities towards the public of the
countries. At the same time, CSR activities helps in the protecting the environment from various
business activities of the companies (Tai and Chuang 2014). Thus, based on the above
discussion, it can be seen that effective strategies and CSR activities are important parts in
measuring the performance of the business organizations. At the same time, both of them helps
in establishing effective control system in the companies.
Answer to Question 6
Four major strategic management accounting techniques will be helpful for Regis in
planning, implementation, control and monitoring of projects. They are discussed below:
Benchmarking: This is one of the major steps for monitoring the performance of organizational
projects. In the benchmarking process, the performance of Regis will be compared with the top
performer company in that industry.
Balance Scorecard: Balanced scorecard is one of the major tools for Regis for the selection,
planning and performance measurement of the organizational projects. It is considered as a major
strategic accounting tool that the organizational managers can use for various purposes
(Grigoroudis, Orfanoudaki and Zopounidis 2012).
Value Chain Analysis: It is also considered as a major strategic accounting tool. This tool can be
used for various purpose in the companies like planning, monitoring, performance measuring,
implementation and others.

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Target Cost Management (TCM): TCM will be helpful for Regis in the determination of the life
cycle cost of a particular project.
Figure 4: Strategic Management Accounting Techniques
(Source: Wheelen and Hunger 2017)
StrategicManagementAccountingTechniquesValueChainAnalysisBenchmarkingTargetCostManagementBalancedScorecard

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References
Antràs, P. and Chor, D., 2013. Organizing the global value chain. Econometrica, 81(6), pp.2127-
2204.
Bass, S. and Dalal-Clayton, B., 2012. Sustainable development strategies: a resource book.
Routledge.
Elms, D.K. and Low, P. eds., 2013. Global value chains in a changing world. Geneva: World
Trade Organization.
Grigoroudis, E., Orfanoudaki, E. and Zopounidis, C., 2012. Strategic performance measurement
in a healthcare organisation: A multiple criteria approach based on balanced
scorecard. Omega, 40(1), pp.104-119.
Hill, C.W., Jones, G.R. and Schilling, M.A., 2014. Strategic management: theory: an integrated
approach. Cengage Learning.
Schmeisser, B., 2013. A systematic review of literature on offshoring of value chain
activities. Journal of International Management, 19(4), pp.390-406.
Tai, F.M. and Chuang, S.H., 2014. Corporate social responsibility. Ibusiness, 6(03), p.117.
Wheelen, T.L. and Hunger, J.D., 2017. Strategic management and business policy. pearson.

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