Vision, Mission, Goals,

Objectives and Strategy

Typology
 Subject 
Subject Material (2021)
Meetings

• Accounting for strategic management: introduction and 
1 the conceptual framework
• Vission, Mission, Goals, objectives, and strategy typology

2 The Basic of Management Control
Cost Allocations and Activity based costing and activity 
3
based management
Advance Manufacturing technology, JIT, Target Costing, and 
4
product life cycle
Quality costing, total quality management, and 
5
management accounting system
6 Value chain analysis and accounting

7 Customer Profitability Analysis/Customer Accounting
Zahirul Hoque
Published by Spiro Press (2003) 8 Midterm Exam
ISBN 10: 1904298737ISBN 13: 9781904298731
 The Strategic 
Management Process
Introduction
Strategy an integrated set of actions aimed at securing a sustainable competitive advantage

Strategic ‐ a process of designing a mission statement, setting long‐term goals and 
objectives, and establishing strategies. 
planning ‐ a long term plan

Strategic long term planning, implementation and controlling which provides a framework 
management for all the actions managers take and how they are assessed.

Strategic
Management the role of mgt accounting in the strategic analysis, planning and control of 
accounting organization
 Introduction
Strategic management consists of the analyses, decisions, and actions an organization
undertakes in order to create and sustain competitive advantages

3 ongoing processes:
Analysis of strategic goals (vision, mission, and strategic objectives) along with the analysis of 
analyses the internal and external environment of the organization

Strategic decisions made by leaders:
decisions • What industries should we compete in? 
• How should we compete in those industries? 

Take Action:
actions • Firms must take the necessary actions to implement their strategies
• Allocate the necessary resources and to design the organization to bring the 
intended strategies to reality

Source: (Gregory, et al., 2013)

Discussion:
WHY some firms outperform others?
• How should we compete in order to create competitive advantages 
in the marketplace? 

• How can we create competitive advantages in the marketplace 
that are unique, valuable, and difficult for rivals to copy or 
substitute? 
 4 Key Attributes of Strategic Management
Directs the organization toward overall goals and objectives. 

Includes multiple stakeholders in decision making. 

Needs to incorporate short‐term and long‐term perspectives. 

Recognizes trade‐offs between efficiency and effectiveness.

Source: (Gregory, et al., 2013)

Why Traditional Management Accounting is not
sufficient to provide information for
strategic decisions?

Conventional SMA
• Historical • Prospective
• Manufacturing focus • Competitive focus
• Existing activities • Possibilities
• Reactive • Proactive
• Overlook linkages • Embraces linkages
• Data orientation • Information orientation
 The Strategic Management 
Perspective:
An Imperative throughout the 
Organization
Learning materials
1. What is a vision statement?
2. What is a mission statement?
3. Organizational strategy
4. Goals / strategic goals
5. Objectives
6. Strategic decisions
7. What is a strategic business unit
8. Types (levels) of strategy
9. Various types of strategy typology
10. Strategy and environmental uncertainty
 A Hierarchy of Goals

Organizations express priorities 
best through stated goals and 
objectives that form a hierarchy 
of goals, which includes its 
vision, mission, and strategic 
objectives

Source: (Gregory, et al., 2013)

 Organizational Vision
A vision is a goal that is “massively inspiring, 
overarching, and long term.” VISION MASTER OF ACCOUNTING
PADJADJARAN UNIVERSITY

Leaders must develop and implement a vision. A  Become an excellence 
vision may or may not succeed; it
depends on whether or not everything else happens  master degree in accounting 
according to an organization’s strategy.  with high reputation in 
accomplishment education 
“Without execution, vision is just another  in 2026
word for hallucination.”

Source: (Gregory, et al., 2013)

 Organizational Mission
Mission statement:  
• a set of organizational goals that include  MISSION MASTER OF ACCOUNTING
both the purpose of the organization, 
• its scope of operations, 
PADJADJARAN UNIVERSITY
• and the basis of its competitive  • Developing graduates who are competent in the field of 
advantage.  accounting in accordance to the worldwide demands of 
professional accountants
• Improving the competence and commitment of the 
academic staffs and students to play an active role in 
Vision statements tend to be quite enduring  the development of applied accounting knowledge and 
and seldom change. However, a firm’s  technology in a national and Asia Pacific level
• Organizing internationally competitive higher education 
mission can and should change when  that is able to access the world’s demands of human 
competitive conditions dramatically change  resources in accounting
or the firm is faced with new threats or  • Organizing higher education management with qualities 
in accordance to the principles of good governance to 
opportunities improve the reputation and the trust of stakeholders
Source: (Gregory, et al., 2013)
 Strategic Objectives
Strategic objectives are used to  A set of organizational goals that are used to 
operationalize the mission  operationalize the mission statement and that are 
statement specific and cover a welldefined time frame. 

For objectives to be meaningful, they need to satisfy several criteria. 

 Specific. This provides a clear message as to what needs to be accomplished.
 Measurable. There must be at least one indicator (or yardstick) that measures progress against 
fulfilling the objective.
 Appropriate. It must be consistent with the organization’s vision and mission.
 Realistic. It must be an achievable target given the organization’s capabilities and opportunities in the 
environment. In essence, it must be challenging but doable. 
 Timely. There must be a time frame for achieving the objective. As the economist John Maynard 
Keynes once said, “In the long run, we are all dead!”

Source: (Gregory, et al., 2013)

 GOALS/STRATEGIC OBJECTIVE
GOAL
• Goals are specific concrete targets.  • Objectives are the end results of an 
• A firm works back from mission to  organisation's planned activity.
goals. • Objectives are the desired targets 
within the scope of the vision to 
A firm's goal(s) is a specific outcome  realise the mission
(Viljoen and Dann, 2000).
that it seeks to attain or maintain. 
Goals are chosen to implement the  • Objectives state what is to be 
firm's strategy or to align the firm more  accomplished by when, and should 
closely with its vision and mission.  be quantified if possible
(Wheelen and Hunger, 1998).

Example of an organisational goal: Example of an objective: for increased 

'increase profitability.  profitability might be an increase of 6 
per cent within six months to one year
Source: (Hoque, 2004)
 STRATEGIC
DECISIONS
Strategic decisions are those that determine
the overall direction of an enterprise and its
The primary stages of strategic 
ultimate viability in light of the predictable, the decisions: 
unpredictable, and the unknowable changes
that may occur in its most important 1. Formulating strategies of the business;
surrounding environments. 2. Communicating those strategies 
Mintzberg, Quinn and Voyer (1995, p. 7)
throughout the organisation;; 
In formulating an organisation's strategy,  3. Developing and carrying out tactics to 
three main types of strategic decisions are  implement the strategy. 
made:  4. Developing and implementing 
1. What business will the organisation management control systems to 
operate in?  monitor the success of the 
2. How should the organisation compete in 
implementation steps, and hence the 
that business? 
3. What systems should the organisation success in meeting the strategic 
have in place to support its competitive  objectives.
strategies?
Source: (Hoque, 2004)
WHAT IS A STRATEGIC TYPES (OR LEVELS)
BUSINESS UNIT OF STRATEGY
A strategic business unit (SBU) is
an organisational operating or • Corporate Strategy
subunit that has a distinct set of • Competitive (or Business
products or services sold to a
customerlgroup of customers, Unit) Strategy
facing well‐defined set of • Functional (or Operation)
competitors, and a mission Strategy
distinct from those of the other
operating units in the firm.

Source: (Hoque, 2004)

 TYPES (OR LEVELS) OF STRATEGY
Corporate Strategy Business level  Operational level 
strategy (competitive  strategy 
• concerned with the overall strategy)
purpose and scope of an • concerned with how different parts
organisation and how to add of the organisation deliver the
• concerned with the way a
value to business units. strategy in terms of managing
business seeks to compete
• what businesses should the resources, processes and people.
successfully in its particular
firm be in? • marketing strategy, financial strategy
market.
• How should the firm allocate its (source of finance), R&D
• SBU represents a group of
resources among existing strategy(technological leader and
related business divisions, each
businesses? innovation), operation strategy
responsible to corporate head‐
• which businesses represent the (production strategy)
quarters for its own profits and
company’s future? • Efficiently utilizing specialists within
losses. (cost leadership,
the functional area, Integrating
differentiation
activities within the functional area

Source: (Hoque, 2004)

 VARIOUS TYPES OF STRATEGY TYPOLOGY
Simon’s Strategy Typology

1. Strategy as process

2. Strategy as competitive position

3. Business Level Strategy

4. Corporate Level Strategy

Source: (Hoque, 2004)

 VARIOUS TYPES OF STRATEGY TYPOLOGY
Miles and Snow’s Strategy Typology

Decision Making in 3  Defender Type Strategy
Potential Problems:
Prospector Type Strategy
1. Entrepreneurial 
Problem Analyser or Mixed Strategy
2. Engineering Problem
3. Administrative Problem Reactor Strategy

Source: (Hoque, 2004)

 VARIOUS TYPES OF STRATEGY TYPOLOGY
Porters’s Competitive Strategy
Porters propose 2 generic business Porter’s Structural Analysis of 
unit strategies for outperforming Industry
other organization in a particular
industry:
• Threat of Entry
• Pressure from Subtitute Products
Lower Cost (or overall cost  • Bargaining power of Buyers
leadership) Strategy • Vargaining power of supplier
• Rivalry among existing 
Differentiation Strategy competitors

Source: (Hoque, 2004)

 VARIOUS TYPES OF STRATEGY TYPOLOGY
Mintzber’s five Ps for Strategy
Mintzberg describes organisational strategy by using five Ps. Strategy is:

• A plan when it provides a consciously intended course of action as a 
guideline to deal with a situation
• A ploy when it is an intended specific manoeuvre to outwit competitors;
• A pattern in a stream of actions for an intended strategy to be realised;
• A position, that is a means of positioning firms within their business 
environment;
• A perspective, an ingrained way of perceiving things that exist only in the 
minds of interested parties

Source: (Hoque, 2004)

STRATEGY AND ENVIRONMENTAL
UNCERTAINTY
Environmental uncertainty refers to the firm's inability to predict accurately the effects
of various aspects of the firm's external environment, such as customers, suppliers,
deregulation and globalisation, technological processes, competitors, government
régulations/policies, the economic environment and industrial relations.
The greater the environmental uncertainty, the greatèr the difficulty in predicting future 
events

greater care must be taken in designing the appropriate MCS, which is essential to 
organisational effectiveness. There is the view that an organisation's survival depends 
upon fitness' for the changing environment.
Companies are adapting to this uncertainty by adopting strategies, structures (including 
size, 'downsizing' and 'right sizing') and systems (including performance evaluation) that 
allow flexibility, keep options open and support a fast response capability.
Source: (Hoque, 2004)
 THANK
YOU
Bibliography
Hoque, Zahirul. (2004). “Strategic Management Accounting Second Edition” . Spiro Press,London
Dess, Gregory G. , G.T. Lumpkin, Alan B. Eisner, Gerry McNamara. (2012) . Strategic Management Text 
and Cases. International Ed. Mc‐Graw Hill Company, Inc. USA