Global Competition Challenges for Management Accounting...

Management Accounting Research , 1996, 7, 247 – 269 Global competition: challenges for management accounting and control Jeremy F. Dent* The success of Japanese and south-east Asian ï ¬ rms in world markets over recent decades is well known. Playing by ‘new’ rules, these ï ¬ rms have pursued global strategies which many Western ï ¬ rms have found difï ¬ cult to confront. Moreover, the rules are continually evolving. This paper analyses some issues arising for management accounting. By way of introduction, the paper ï ¬ rstly reviews the analytics of global competition and discusses emerging issues for the 1990s and beyond. Thereafter, ï ¬ ve challenges are identiï ¬ ed for management accounting, and in particular for planning and control. The ï ¬ rst is to†¦show more content†¦Subsequently the paper identiï ¬ es ï ¬ ve challenges arising for management accounting, and in particular for planning and control. A concluding section summarises the paper and draws out research implications. This paper is offered in a tentative spirit. That is to say, it sets out speculations on the way in which management accounting might usefully respond to the challenges confronting ï ¬ rms in global industries. These speculations are informed by initiatives in process in various ï ¬ rms. But no claim to empirical rigour is made. Rather, the aim of the paper is to raise issues for the management accounting research agenda. Global Competition 2. Global competition 249 Global competition arises in an industry when ï ¬ rms within it treat the world as a single market (e.g. Grant, 1991). To explicate: a distinction needs to be drawn between the globally-integrated strategies of Japanese ï ¬ rms and the more fragmented multinational strategies historically adopted by many European and U.S. ï ¬ rms. During the 1960s and 1970s, for example, Japanese automobile and consumer electronics companies such as Toyota and Matsushita aggressively pursued global strategies. Standardized products were marketed throughout the world. Production was concentrated in Japan. In contrast, up until the late 1970s, their Western competitors, General Motors , for example, and Philips , pursuedShow MoreRelatedManagement Accounting : Planning And Performance Management Systems1625 Words   |  7 PagesManagement accounting is described as â€Å"a profession that involves partnering in management decision making, devising planning and performance management systems, and providing expertise in financial reporting and control to assist management in the formulation and implementation of an organisations strategy† (Blocher, et al., 2009). Many Changes in the business environment have occurred in recent years which have caused substantial adjustments in cost management practices leading to a contemporaryRead MoreKey Developments in Budgeting Practice1457 Words   |  6 Pagespractice can affect behaviour in terms of perceptions, personal objectives participation, aspiration, targets, obsession, and excuses. 2. Development in terms of the use of budgets for performance evaluation; the budgeting process can help in top management and employee motivation if used appropriately, and may also lead to dysfunctional behaviors if used inappropriately; and budgets and the whole budgeting process can affect the behavior of managers and employees in terms of perceptions of individualsRead MoreManagement Practices Traditional vs Modern Innovative997 Words   |  4 PagesManagement Practices Traditional vs Modern Innovative In last many years, few management accounting innovations has been developed. Managers have to make decision on a daily basis as well make decisions regarding the future and how to survive and grow in an energetic market place with ever growing uncertain circumstances. Traditional or modern management accounting system give relevant information to all levels of management, financial and other information to make decisions about planning, controlRead MoreKfcs Big Game of Chicken1081 Words   |  5 Pagesgained a substantial global recognition and developed multinational operation in past decades. Although KFC has successfully entered Asian and African markets, the domestic operation has faced lots of challenges such as declining market share, industry competition and franchisees dissatisfaction and so on. President Novak would like to keep how the company is doing well now, which is to focus more on foreign market. The domestic franchisees are disappointed to KFC management team due to lots of restrictionsRead MoreGlobal Interdependence And The Existence Of Large Multinational Enterprises Create A Need For Global Accounting1176 Words   |  5 PagesGlobal interdependence and the existence of large multinational enterprises create a need for global accounting. Multinational corporations are companies that carry out business in more than one country other than their home. Companies go global for many reasons: to increase sales, improve profits and innovation. Decentralization is essential for the creation of large firms, because CEOs are otherwise constrained in the number of decisions they can make directly -- it is therefore critical for enablingRead MoreCritically Evaluate the Impact of Globalization on Management Control System2052 Words   |  9 PagesCritically Evaluate the Impact of Globalization on Management Control System Management control is the process by which managers assure that resources are obtained and used effectively and efficiently in the accomplishment of the organization’s objectives (Berry, Broadbent amp; Otley 1995). The purpose of a management control system is to encourage managers to take actions that are in the best interest of the company. Technically, this purpose can be described as goal congruence. It is also ensureRead MoreSection 1.1: Aim Of Report. This Report Will Briefly Go1157 Words   |  5 Pagesbut connected topics, the first being the past and present role of a management accountant and how changes in the industry will then affect the future role of a management accountant. From this, the report will evaluate the adoption of strategic management accounting and its effect on performance, then finally how this course will prepare me for a career in management accounting. Section 1.2: Introduction Management Accounting can and has been defined as many different things since its creationRead MoreAbc Company - 1 Essays1236 Words   |  5 PagesABC Company Randall K. Howell ACC 206: Principles of Accounting II Don Fey March 4, 2013 The ABC Company is a manufacturing firm that specializes in making cedar roofing and siding shingles, introducing the new project to build cedar dollhouses by shingle scrap materials for reaching $3  million annual sales within the next 3 years. Explain the overall risk profile of the ABC Company  based on current economic and industry issues. In order to help out the CEO I prepare  reports that willRead MoreChallenges Of Islamic Finance Industry1207 Words   |  5 PagesCHALLENGES TO ISLAMIC FINANCE INDUSTRY Many authors agree that Islamic finance industry has a long way to become globally successful industry. To achieve its potential for solid growth, Islamic finance must improve number of areas including: improving regulatory supervision in the industry, adaptation of tax treatment to Islamic banking products, establishing liquidity control, introducing risk management tools, supporting standardization of financial products and others. Prasad (2015) mentionsRead MoreMicrosofts International Financial Management: An Analysis1234 Words   |  5 Pagesbelieve that they are stifling competition and innovation. This is a sign of how the firm has established a large international presence around the globe. (Microsoft, 2013) (Fact about Microsoft, 2013) To fully understand what is happening requires focusing on the way the investment banking process assisted them, the regulatory bodies affecting their decisions and identifying / evaluating contemporary issues they are dealing with in international financial management. Together, these elements will