CVCITC

Cagayan Valley Computer & Information Technology College, Inc.

No. 28 Carreon Street, Centro East, Santiago City, Philippines | Telefax: (078) 305-0139

Name: Jamaica Shane Agustin Date: 06/28/2022

Course&Year: BSA3 Subject: AIS

PA3- ESSAY QUIZ

AIS or Accounting Information system is a system that collects the data, reports
and processes data to produce information for decision makers. The main function of
Accounting Information system is to provide information derived from the financial
transactions. AIS ensures that the financial transactions provided by the business
organization is accurately presented and free from bias and error. Corporate Strategy
composes the firm’s action in achieving their goal or with the aim to achieve company
objectives while achieving a competitive advantage. Lesson 3 talks about the corporate
strategy and how an AIS is influenced by the corporate strategy. Corporate Strategy is
something that we need to have to manifest the organizational goal.

In achieving the organizational goal of the business it is needed to have a well-

defined corporate strategy. The lesson also show us what their corporate strategy is
and were taking a look on how AIS or Accounting Information system fits into or how
even corporate strategy fits into Accounting Information system. In decision making it is
suggested by Michael Porter that there are two basic business strategies companies
can follow which are the product-differentiation and low cost strategy. In product-
differentiation strategy is what makes your product different from other product what
makes your product or service stand out to your target audience. Focusing on your
customers is a good start to successful product differentiation. The second is low-cost
enables the firm to sell its product with a lower price compared to its competitors
because of lower costs of producing products as a result of this, they win a competitive
advantage in the industry. Michael Porter argues also that companies must choose a
strategic position among three choices which are the Variety based position, needs
based strategic position and the access based strategic position, Porter said argues that
these strategic positions are not mutually exclusive and can overlap and in choosing a
strategic position it is important because it helps a company focus its efforts as opposed
 CVCITC
Cagayan Valley Computer & Information Technology College, Inc.
No. 28 Carreon Street, Centro East, Santiago City, Philippines | Telefax: (078) 305-0139

to trying to be everything to everybody. Relating to Accounting Information system, the

AIS should help the company to adopt and maintain the company’s strategic position
which the AIS is the responsible on collection the data and reports derive from the
financial transactions or non-financial transactions of every business organization
because the AIS should be the primary information system to provide users with
information they need to perform their jobs.