WESLEYAN UNIVERSITY – PHILIPPINES

College of Business and Accountancy

Cabanatuan City

STRATEGIC BUSINESS ANALYSIS

MODULE 1
Introduction to Strategic Business Analysis and
Overview of Management Consultancy Services by CPAs

LEARNING OUTCOMES
At the end of the module, the learners are expected to be able to
1. Define and understand the importance of Strategic Business Analysis and Management
Advisory Services including their relationship.
2. Discuss the evolution, trends and prospects of management consulting services.
3. Understand the consulting industry and career structure in consulting firm.
4. Describe the nature of MAS by independent accounting firms.
5. Distinguish between consultations and engagements
6. Explain the rationale for using management consultants.
7. Discuss the CPAs role and objectives in an MAS engagement.

BIBLICAL VALUES INTEGRATION

Deuteronomy 31:6

“Be strong and of a good courage, fear not, nor be afraid of them: for the LORD your God, he
it is that does go with you; he will not fail you, nor forsake you.”

INTRODUCTION
This module will introduce to you to topics about Strategic Business Analysis, its definition
and its purpose. In addition, the relationship between Strategic Business Analysis and Management
Advisory Services shall likewise be discussed.

BODY
Required Readings: Part I, Chapter 1 of Management Consultancy: Principle and Engagements by
Ma. Elenita Balatbat Cabrera, BBA, MBA, CPA, CMA

What is Strategic Business Analysis?

Strategic business analysis involves outcome focused thinking, simultaneously
understanding business context, business challenges, and the complexities of the internal
and external environment to frame the scope of the transformation, articulate the business
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need/outcome, and shape the agenda for transformation. Strategic business analysis
requires a focus on all aspects of the organization. It leverages business analysis, change
leadership, and program and project management.

What is Management Advisory Services?

Management advisory services are consulting services performed by a specialist
organization for its clients. These services are intended to provide advice regarding the operations
and finances of clients. The services may address any of the following areas:
 Asset valuation
 Business strategy
 Computer systems
 Litigation support
 Mergers and acquisitions
 Organizational structure
 Process analysis
 Risk management

A CPA firm may provide management advisory services if this group is separated from the auditing
and tax functions. Basically, there is a need of MAS in Strategic Business Analysis.

MANAGEMENT CONSULTING
It can be described as an independent and objective advisory service provided by qualified
persons to clients in order to help them identify and analyze management problems and
opportunities. Management consultants also recommend solutions or suggested actions with respect
to these issues and help, when requested, in their implementation.

WHY THERE IS MANAGEMENT CONSULTANCY?

What do these trends portend for the future of management consulting?

1. Management consulting will become even more specialized
2. Insight provider, creator and sharer of information
3. Management consultancy firms will tend to remain small or quite large
4. Sophisticated marketing
5. Career attraction in management consulting

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Most definitions of consultancy would include the following:

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TWO TYPES OF ENCOUNTERS WITH CLIENTS
1. Consultations
 Providing advice and information during a short time frame
 Information provided is orally
 Information are qualified to limitations
2. Engagements
 Analytical approach process is applied in a study or project

The purpose of independent accounting firm in engaging in MAS is to utilize the essential
qualifications it has available to provide advice and technical assistance which will enable client
management to conduct its affairs more effectively. The essential qualifications include:
1. Technical competence
2. Familiarity with clients finance and control systems and his business problems.
3. Analytical ability and experience in problem solution.
4. Professional independence, objectivity, integrity

SUMMARY: Management consultants work with businesses to improve their performance

by providing expert advice to solve problems and encourage growth. They work with
businesses across a wide range of sectors, including business strategy, finance, HR and
marketing. It’s not just private firms - many public institutions use management consulting
to improve their practices and efficiency. In basic terms the role of the consultant is to
provide their client with an audit of current procedures, their recommendation for
improvement and an action plan for implementation.

REFERENCE:

Management Consultancy: Principle and Engagements by Ma. Elenita Balatbat Cabrera, BBA, MBA,
CPA, CMA

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