Strategic Management Accounting Report: Ansell Strategic Case Study

This report provides a comprehensive analysis of strategic management accounting, focusing on the case of Ansell Strategic. It begins by defining value chain management and its application to Ansell Strategic, suggesting tools like SWOT analysis and the balanced scorecard. The report then explores techniques for strategy development, implementation, and monitoring, emphasizing stakeholder involvement and progress tracking. It delves into the strategic management cycle and the role of professional accountants, highlighting their importance in financial strategy and data credibility. The analysis extends to industry value chain analysis, identifying value-added activities and value drivers within the aged care sector. Furthermore, the report examines Corporate Social Responsibility (CSR) performance measurement and control systems within Ansell Strategic. Finally, it discusses strategic accounting techniques like activity-based management, the balanced scorecard, and cost management and their application to Ansell Strategic's projects, emphasizing planning, controlling, monitoring, and implementation.

Running head: STRATEGIC MANAGEMENT ACCOUNTING
STRATEGIC MANAGEMENT ACCOUNTING
Name of the Student
Name of the University
Author note

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Table of Contents
Question .1.......................................................................................................................................2
Question .2.......................................................................................................................................3
Question .3.......................................................................................................................................4
Question .4.......................................................................................................................................6
Question .5.......................................................................................................................................7
Question .6.......................................................................................................................................8
References:......................................................................................................................................9

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Question .1
Value Chain management refers to the process of adding value to the company. It is a set
of activities that a firm operating in a certain industry performs in order to deliver a
quality product or service for its customers. The firm aims to design, develop, and deliver
products in a timely and efficient manner aimed at adding value to their customers. Ansell
Strategic provides expert services in development planning, performance improvement, strategy
and change management and mergers and acquisitions (Williamson 2013). To add value in its
overall provision of services, the company must employ the following tools:
SWOT analysis of the Ansell Strategic. The complete scrutiny of the external
environment of Ansell should be done, which will point out the various flaws and weaknesses in
its provision of services towards its aged target market. Use of balance score card can be done to
identify and improve the internal functions of Ansell such as better retirement life standards for
its customers, quality development work, health services, independent consultation and advice
for the old age customers. Benchmarks can also be used to enhance value based services, where
the best performances of the best competitors are set as benchmarks and are compared to identify
and apply the best practices. Millennium aged care services has set a bench mark in this sector by
becoming the first accredited aged care company and by providing timely consultancy and
prompt paperwork (Ansell Strategic, 2018). Emulating such standards can add value to the
company.

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Question .2
Techniques for effective development, implementing and monitoring strategies: The
techniques for creating, implementing and monitoring strategies are of paramount importance to
an organization. Some of them are as follows:
Reporting to others:-
It should be reported to others as well for examination and overseeing the
implementation process. Activities which are undertaken by isolation from others are of
little significance for others, so transparency and accountability should be introduced as
well.
Involvement of stakeholders:-
All the relevant stakeholders of Ansell should be actively involved in the entire
procedure of creating, implementing and monitoring of strategies. Taking advice and help
from professional management experts is a good idea as well. Tracking progress of these
processes is also an important part of the process.
Monitoring progress: -
Better and successful monitoring of the progress of the entire procedure of
working towards strategy creation and implementation is necessary. Implementation
planning should define the data needed to be collected and the necessary methods for

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monitoring. Obtaining data and suggestions from experts would also help in a long way
in this procedure.
Evaluation of the Strategies and with the outcomes:-
The success of each and every management strategy is determined by the fact that
whether it is able to produce the results for which it was created and implemented. The
credibility of the evaluation procedure is enhanced by the evidences collected and the
standard procedure adopted by the management. They should look into the results and
take the necessary steps to make changes in the strategies if deemed necessary.
Question .3
Strategic management cycle and leadership role of professional accountants in strategic
management:
Strategic Management Cycle’s 4 components :( Figure created by Author)

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The analysis of the strategic management cycle of Ansell strategy is very important for
the betterment of the organization. The strategies are to be rechecked in accordance with the
objectives of the aged care target market of Ansell. The objectives like providing top notch
retirement services to the aged people of Australia (Ansell Strategic, 2018). Consequently, the
necessary strategies should be scanned and deviations should be reported to the management in
order to take rectification steps. Planning should be analyzed in detail. The brainstorming
sessions should be periodically done in order to improvise the plans in accordance with the
demands and the changing scenarios in the Australian economy (Deloitte Australia, 2018).
Implementation is the final process, where the end results are determined. If there are any
problems in the implementation such as better sustainable funding strategies and planning for the
older Australians.
The role of professional accountants in strategic management is vast in nature and their
role has been discussed below:

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 A skilled professional accountant is an invaluable asset to the company. These
individuals use their intricate skills and innate understanding of the company to
perform their functions. Their pragmatic problem solving approach is very
important for the strategic management implementation.
 They assist the company at every step of their work by providing corporate
strategies, advice and providing suggestions for improving costs and mitigating
risks (Accaglobal.com, 2018). They play an important role in the formulation of
financial and other managerial strategies which is indispensable for the company.
 They regulate the financial health of the entire company as a result of which they
occupy a significant position in the strategic management procedure and
implementation.
Apart from their paramount role in the strategic management arena, the confidence
produced by the genuine financial data issued by these professional accountants is the
prime source of trust of public over the functioning of the company.
Question .4
Role of organization and industry value chain analysis:
 Industry value chain analysis in strategic planning is very important as it helps in
identifying the specific activities which provide superior kinds of profits to the
concerned company (Forbes.com, 2018). The company must identify and nurture
these areas which are the source of sustainable profits for the company.
 Industry value chain analysis helps the company by providing the various
interrelationships and linkages between two or more business units within the

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industry. These linkages and relationships can be a useful source of co-ordination
and joint working initiatives between different units from the same industry.
 Another important contribution of value chain in an industry is that, with its help
formulation of tailored specific approach to help in the growth of individual firms
in an industry. The firm can, with the help of value chain can specifically improve
its performance in accordance with the standards followed across the industry.
Application of analysis:
Value added activities: It involves preparing a flow chart for the business and then
analyzing whether value is being added or not. With the help of industry chain
analysis, value added activities helps to identify and remove inefficient and unwanted
activities of the business. The overall aim of the organization remains the same that is
to provide and enhance the value of the services offered.
Value drivers: They are those things which when added to a product or service
increases its value to the customers. They help to differentiate the products and
services from those of the competitors. Value chain analysis helps to create such
novel drivers which proceed with the task of assigning a better identity to the firm’s
products and services. In the aged care industry it can be better legal case
management and better safety and social securities.
Value chain: Due to the application of value chain, the management can assess the
strategies of the firm. This can expose the weaknesses and consequent steps can be
taken to work on it.

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Question .5
In Ansell Strategic, CSR assumes a very important role in its overall agenda. The
company believes in giving back to the community apart from providing services to
its aged care customers. The analysis of its CSR related performance measurement
and control systems is provided here. A CSR target is initially added as a beginning
point towards integrating CSR into the management control systems (Tai and Chuang
2014). These targets are called steps and the sequence is followed. This is done
because these steps cannot be skipped when working in a systematic manner towards
the fulfillment of the overall objectives. The management control system symbolizes
the various tools, systems and processes, through which the objectives of the
organization are met. After attaining the CSR objectives, they are reported to the
various stakeholders.
Question .6
Activity based management; Balance score card and Cost management are some of the
prominent strategic accounting techniques which are to be applied in the various projects of
Ansell strategic. Activity Based Costing requires identifying major activities of the project,
assigning costs to each of its cost centers and finally allocating activity costs to each product.
Cost management focuses on cost reduction as well as cost control of various activities and
projects. Balance score card identifies all the weaknesses of the projects by scanning all its
internal and external activities and aims to eliminate them. With these techniques the costs,
weaknesses, activities of each of these projects would be scrutinized for better evaluation by

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Ansell. All these techniques are necessary in planning, controlling, monitoring and
implementation of the various projects undertaken by Ansell Strategic.

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References:
Accaglobal.com. (2018). [online] Available at:
http://www.accaglobal.com/content/dam/acca/global/PDF-technical/other-PDFs/
Accountants-Strategic-Leadership.pdf [Accessed 27 Mar. 2018].
Aksoylu, S. and Aykan, E., 2013. Effects of strategic management accounting
techniques on perceived performance of businesses. Journal of US-China Public
Administration, 10(10), pp.1004-1017.
Ansell Strategic. (2018). Case Studies | Ansell Strategic. [online] Available at:
https://www.ansellstrategic.com.au/case-studies/ [Accessed 27 Mar. 2018].
Ansell Strategic. (2018). Professional Aged Care Organisation Advisors | Ansell
Strategic. [online] Available at: https://www.ansellstrategic.com.au/ [Accessed 27
Mar. 2018].
Deloitte Australia. (2018). Australia’s aged care sector | Deloitte Australia | Deloitte
Access Economics report. [online] Available at:
https://www2.deloitte.com/au/en/pages/economics/articles/australias-aged-care-
sector-economic-contribution.html [Accessed 27 Mar. 2018].
Forbes.com. (2018). Forbes Welcome. [online] Available at:
https://www.forbes.com/sites/loracecere/2016/05/19/are-we-driving-value-in-value-
chains/#45fdfec157af [Accessed 27 Mar. 2018].

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Tai, F.M. and Chuang, S.H., 2014. Corporate social responsibility. Ibusiness, 6(03),
p.117.
Williamson, D., Cooke, P., Jenkins, W. and Moreton, K.M., 2013. Strategic
management and business analysis. Routledge.