LEC 1: MANAGEMENT ACCT, CONTROL, RISK & CONTEMPORARY ORG

• Change in strategic direction & reason factors

• How control system needs to change based on new strategy (Flamholtz)?
• Organisational control, Core control system, Key influences of MCS
• Compare between different control systems?
- Objective/goals of strategy
- Controls system: performance measures
• Risks: strategic, operational, regulatory, financial; reason factors and controls

• Objectives and goals of firm’s strategy

• What controls and performance measures support these objectives and goals (strategy)?

LEC 2: RESPONSIBILITY ACCT, STRUCTURE & ORG SUB-UNIT

• Company’s structure, strategy, key challenges. How the structure cope with challenges
• Decision for company structure:
- Type of structure
- Degree of centralisation
- Extent of work specialisation
- Span of control
- Boundary spanning control – silo effect
• Pros and cons of functional structure, divisional structure, matrix structure
• Control system framework
1. Planning
2. Operations
3. Measurement
4. Feedback
5. Evaluation & reward

LEC 3: MEASURE & EVALUATE SUB-UNIT PERFORMANCE USING

DIAGNOSTIC TOOLS
• What does the company do? Key products, key customers, key competitors?
• Important industry characteristics
• How well do these performance metrics conduct themselves in evaluating performance?
• Usefulness, pros & cons of CR, IR, EVA
• Behavioural effect on management decision-making
• Link between org goals, performance measures and decisions

LEC 4: PRICING INTERNAL TRANSFER

• 4 TP methods
• How TP matters to company?
• TP negotiating appropriateness in situation of idle capacity and full capacity
• Should mgmt of firm be involved in TP ‘dispute’?
• Why firms are structured in a way the DM may be sub-optimal?
LEC 5: ROLE OF NON-FINANCIAL MEASURES & THE BALANCE SCORECARD
• Strategic planks/levers:
1. Baseline growth
2. Incremental growth
3. Product quality
4. Distributor service
5. Productivity gains
6. People
• Metrics: financial, customer, internal business process, learning & growth
• Financial based vs non-financial based pm, pros & cons, how to overcome limitations
• Strategy map
• BSC: constraints, tensions
- Objectives of BSC
- Operational risks
- Strategy

LEC 6: STRUCTURING REWARD SYSTEM

• The performance scorecard and how company link the pm across different perspective to
bonus amount
• Pros & cons of performance scorecard
• Pros & cons of a subjective performance evaluation
• Bonus pools: when design a bonus pool, consider:
1. The size of the bonus pool? How is this determined?
2. The allocation formula: how will the bonus pool be shares?
3. The type and mix of incentives: what is the reward to be?

LEC 7: USING R TO WORK WITH PERFORMANCE DATA

LEC 8: STRATEGIC CAPITAL INVESTMENTS

• Model 1
- Treat some items qualitatively, assessed in mgmt conversations
- Supplemented with quantitative analysis e.g. NPV, IRR and payback measures to
rank project
• Model 2: Quantify all components of model and determine a weighted index (SIM)
• Does this tool facilitate a better decision?
• Are you able to suggest improvements to this tool or propose an alternative approach to
facilitate strategic investment DM in general?
• Strengths & weaknesses of model
• Use strategic tools to evaluate:
- Different time frame
- Screening tools first
- Qualitative factors, involving judgement
- Quantitative factors – further analysis step
 - Rank project
- Waiting list
LEC 9: MARKET VARIANCE ANALYSIS
• Interpret market-related variances data and operating performance data
1. Competitive effectiveness (revenue variance)
2. Operating effectiveness

LEC 10: PROFIT PLANNING

• Monthly integrated planning cycle: Mondelez
• What are the options and their financial implications
• Information & Framework for profit planning
• Linking market analysis to profit planning