Strategic Management and Professional Use of Accounting Data for Companies’ Benefit
Chapter One
Objectives of the Study
The project work aims at determining and highlighting the need for adequate accounting data, in an organization.
The study will also provide an exploration and reason for accounting data and will offer adequate solutions that can reduce factors hindering the effective use of accounting data in an organization.
The objectives are stated as follows:
- The study will help to measure the performance of the organization from the accounting data gathered.
- The study also is used to highlight the areas of the organization where controls are needed.
- The study helps to gather all data relating to the activities of the enterprises for the period concerned.
- Also, the study is used as a basis for inter-firm comparison
- Also to assist in forecasting which would likely occur in the future and consequently.
- To serve as a guideline for the amount of revenue to be generated to the government purse.
CHAPTER TWO
REVIEW OF RELATED AND RELEVANT LITERATURE
Since the beginning of the nineties Belgian glasshouse growers are faced with important changes in their competitive environment. Not only the increasing production in the southern countries, but also the relocation of the glasshouses in the Netherlands from the traditional production areas to new locations with a better infrastructure will result in a higher competition on the export markets. Moreover the countervailing power of retailers and the changing consumer preferences will force the Belgian glasshouse growers to change from a production-driven to a customer-driven strategy, with special attention to product innovation, product quality and environmental sound production (Van Lierde et al., 1998, 1999; Ministerie van Middenstand en Landbouw, 2000; Saverwyns et al., 2000 a, b; Taragola & Van Lierde, 2000; Taragola et al., 2000, a, b). More than ever, use of information will become a critical factor in this changing competitive environment. According to decision making theory information plays a central role in decision making. Therefore, one would expect a major interest from glasshouse growers and farmers in general for accounting data and other relevant information. However, according to Poppe (1988,1991) this topic is seldom discussed in the literature and information on the use of accounts by farmers is scarce. He also states that keeping accounts and using them are two different things. This finding is also confirmed by Ohlmér (2000), who found that farmers are not using accounting data, despite that the data are available. In the current paper the use of accounting data by the glasshouse managers of the Belgian FADN is analyzed.
Warren, Reeve, and Duchac (2008) described how Managerial accounting information is designed to meet the specific needs of a company’s management. Management accounting information includes historical and estimated data. Historical data, which provide objective measures of past operations, estimated data, which provide subjective estimate about future decisions. Thus management uses both historical and estimated data in directing daily operations, planning future operations, and developing business strategies. MAIS provide timely and accurate information to facilitate efforts to control costs, to measure and improve productivity, to devise improved production processes, and to report accurate product costs so that pricing decisions, introduction of new products, abandonment of obsolete products, and response to rival products can be made (Johnson and Kaplan, 1987). According to Banbury and Naphiet (1979), the management accounting information system is useful to communicate within the organization to achieve financial goals, and useful as a performance measurement tool in organization. Furthermore, Collin (1982) noted that the management accounting information system is useful in communicating role expectations and organizational climate. It could also be used for motivational purpose associated with role performance. Having a good management accounting information system will ensure the availability of necessary information in a timely manner, thus helping them making better decision for the companies, especially in time of crisis. It is very obvious that the use of accounting data from MAIS for management decision-making should be considered as an important subject to be studied.
Strategic Management
Strategic management is the continuous planning, monitoring, analysis and assessment of all that is necessary for an organization to meet its goals and objectives. Fast-paced innovation, emerging technologies and customer expectations force organizations to think and make decisions strategically to remain successful. The strategic management process helps company leaders assess their company’s present situation, chalk out strategies, deploy them and analyze the effectiveness of the implemented strategies. The strategic management process involves analyzing cross-functional business decisions prior to implementing them. Strategic management typically involves:
- Analyzing internal and external strengths and weaknesses.
- Formulating action plans.
- Executing action plans.
Evaluating to what degree action plans have been successful and making changes when desired results are not being produced.
CHAPTER THREE
RESEARCH METHODOLOGY
RESEARCH DESIGN
The researcher used descriptive research survey design in building up this project work the choice of this research design was considered appropriate because of its advantages of identifying attributes of a large population from a group of individuals. The design was suitable for the study as the study sought to examine the relationship between Product innovation and Sales performance of unilever.
SOURCES OF DATA COLLECTION
Data were collected from two main sources namely:
- Primary source and
- Secondary source
Primary source:
These are materials of statistical investigation which were collected by the research for a particular purpose. They can be obtained through a survey, observation questionnaire or as experiment; the researcher has adopted the questionnaire method for this study.
Secondary source:
These are data from textbook Journal handset etc. they arise as byproducts of the same other purposes. Example administration, various other unpublished works and write ups were also used.
POPULATION OF THE STUDY
Population of a study is a group of persons or aggregate items, things the researcher is interested in getting information to examine the relationship between Product innovation and Sales performance of Unilever Plc. 200 staff of Unilever Plc. were selected randomly by the researcher as the population of the study.
CHAPTER FOUR
PRESENTATION ANALYSIS INTERPRETATION OF DATA
Introduction
Efforts will be made at this stage to present, analyze and interpret the data collected during the field survey. This presentation will be based on the responses from the completed questionnaires. The result of this exercise will be summarized in tabular forms for easy references and analysis. It will also show answers to questions relating to the research questions for this research study. The researcher employed simple percentage in the analysis.\
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
Introduction
It is important to ascertain that the objective of this study was to examine strategic management and professional use of accounting data for companies benefit.
In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in strategic management and professional use of accounting data for companies benefit.
Summary
Strategic management is the continuous planning, monitoring, analysis and assessment of all that is necessary for an organization to meet its goals and objectives. Fast-paced innovation, emerging technologies and customer expectations force organizations to think and make decisions strategically to remain successful. The strategic management process helps company leaders assess their company’s present situation, chalk out strategies, deploy them and analyze the effectiveness of the implemented strategies. The strategic management process involves analyzing cross-functional business decisions prior to implementing them. Strategic management typically involves: Analyzing internal and external strengths and weaknesses, Formulating action plans, and Executing action plans, Evaluating to what degree action plans have been successful and making changes when desired results are not being produced.
Conclusion
From the foregoing, it can be observed from the study that enhanced role of accounting analysis can be used to further the innovation, planning, management and professional drive in both industrial and commercial sector. Furthermore, it can also be deduced that the Company is largely dependent on the accounting data in relation to the company. For every relevant and strategic decision in an organization, the decision must be based or founded on strong accounting data.
Recommendation
The researches makes the following recommendation to the above subject of discussion:
- For continuous positive effect, organizations should invest in qualitative and verified accounting information which will be used to further the innovation, planning, management and professional drive in both industrial and commercial sector.
- The Company which is largely dependent on the accounting data in relation to the company, this is more reason why the company should train her staffs, which are the agents through which accounting data are collected. This training and re-training of staffs will enhance credibility and objectivity of accounting data for informed decisions.
REFERENCES
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