Management Control System and Strategy Overview

Strategy and Management Control System Overview Priyanka Darshana MBA (Aus), ACMA (UK), CGMA, B B Marketing(Kelaniya) 1

Module aim This competencies, and skills relating to the notion of strategy and its connections with the practices of management controls in the organization, with reference to strategy management control system practices. module aims to impart knowledge, concepts and emerging

Intended learning outcome By the end of this module, a student should be able to do the following: 1. Understand why, how and what concepts of strategy developed worldwide, making everybody strategic conscious 2. Understand why, how and what concepts of management control systems developed worldwide making everybody control conscious 3. Articulate the relationship between strategy and MCS, with an emphasis on the changing nature of management control systems

Assessment 40 %- Continues assessment Group Assignment 60% -Final examination

The Art of War-Sun Tzu The Art of War is an ancient Chinese military treatise dating from the Spring and Autumn period in 5th century BC. The work, which is attributed to the ancient Chinese military strategist Sun Tzu ("Master Sun", also spelled Sunzi), is composed of 13 chapters. Each one is devoted to a distinct aspect of warfare and how that applies to military strategy and tactics.

What is Strategy The Blind Men and the Elephant Strategy Formation Lessons

Observations 1.Broder side Wall 2.Tusk- Spear 3.Trunk- Snake 4.Knee- Tree 5.Ear- Fan 6.Tail- Rope

Outcome None of these blind men was wrong in their analysis and description of the elephant as each of them was perfectly describing the body part he touched and felt. The only problem is that they described part of the bigger picture leading them to believe they had felt the complete elephant. we are the blind people and strategy formation is our elephant .

What does the Strategy-Making & Strategy-Executing Process Entail? The managerial process of crafting & executing a company s strategy consists of 5 integrated tasks 1.Developing a strategic vision that charts the company s long-term direction, a mission statement that describes the company purpose, and a set of core values to guide the pursuit of the vision & mission. 2. Setting objectives for measuring the firm's performance and tracking its progress in moving in the intended long-term direction. 3. Crafting a strategy to move the firm along its strategic course that management has charted and to achieve the objectives. 4. Executing the chosen strategy efficiently and effectively. 5. Monitoring developments, evaluating performance & initiating corrective adjustments in the company s vision & mission statement, objectives, strategy or approach to strategy execution

Continue The first 3 tasks make up the strategic plan /Corporate planning A strategic plan maps out where a company is headed, establishes strategic & financial targets, & outlines the competitive moves & approaches to be used in achieving the desired business results.

What does the Strategy-Making & Strategy- Executing Process Entail? Rational Planning Model (RPM)

Management Control System (MCS) A management control system is a logical management accounting tools to gather and report data and to evaluate performance. integration of

The Management Control System Set Goals, Measures, Targets Feedback and Learning Plan and Execute Evaluate, Reward Monitor, Report