Professional Documents
Culture Documents
Corporate Strategy
Strategy is how organizations create & sustain superior performance. A course of action, incl.
the specification of resources req’d to achieve a specific objective
-Expressed in a strategic plan
Implementation of Strategy requires the collection & monitoring of both internal & external
data- Strategic Management Accounting- form of mgt acctg in which emphasis is placed on
information which relates to factors external to the entity, as well as non-financial info &
internally generated info
Corporate Structure
-refers to organization of diff depts or business units w/in a company
FUNCTIONAL- Employees are grouped into same depts based on similarity in their skill sets,
tasks & accountabilities- allows for effective communications bet people w/in a department
and thus leads to an efficient decision-making process- Companies w/ depts such as IT and
Acctg are good examples of a functional structure
DIVISIONAL- Organizes business activities into specific market, product, service or customer
grps- to create work teams that can produce similar products matching the needs of individual
groups- Ex: Geographical structure, regional divisions are built to provide products or services
to specific locations
*Localization-global yung product, inaadapt sa local situations- like Mcdonalds, may iba’t ibang
menu, depende sa location. Like rice meals, meron dito sa PH wala sa US, kasi mga tao naman
dun di sana’y sa kanin, pero dahil Pinoy tau, merong rice meal.
MATRIX- Combination of functional and divisional structure, allows decentralized decision
making, greater autonomy, more inter-departmental interactions and thus greater
productivity and innovation. Disadvantage: Higher costs, may lead to conflicts bet vertical
functions & horizontal product lines
HYBRID- Combines both functional and divisional structure
-divide its activities into dept’s that can be either functional or divisional. This structure
allows the utilization of resources and knowledge in each functions
STRATEGIC BUDGETING
-Process of creating a long-range budget that spans a period of more than one year
-The intent behind this type is TO DEVELOP A PLAN THAT SUPPORTS A LONG-RANGE VISION
FOR THE FUTURE POSITION OF AN ENTITY
-Less concerned w/ detailed revenue and expense line items typically found in an annual
budget
The focus of strategic budgeting therefore shifts away from the minutiae
EX OF STRATEGIC BUDGET:
Product development- Department that works on yrs of R&D to design a product and finally
launch the product. So having a long term budget in place helps the product team to allocate
their resources wisely
*PROGRAMS-Takes ten years to develop rocket
*INFRASTRUCTURE BUDGETS- If projects are long term and may take several yrs to complete,
like railways or nat’l highways, long term budget always helps to function
*PRODUCTIVITY AND CAPABILITY- Most of org goals are long term. However, if there are any
process-centric changes like an adaption of new technology, risk mgt, and many more, the
strategic budget allocates for such needs too