Management Accounting and Strategic Management

ICWA :: Final
Paper 13 : Management Accounting- Strategic Management
[One Paper: 3 hours:100 marks]

Objective . . .

•	To understand the importance of strategic and risk management and apply tools for strategic analysis appropriately
•	To develop the ability to understand the risks both internal and external and build capabilities to mange risks

A. Strategic Management (60%)

1.	Introduction to Business Strategy	10%
	• Meaning and implications of corporate planning, long range planning, business policy planning and strategic planning; strategic management processes; meaning and use of mission, goals, objectives and targets, profit gap, sales gap, risk gap and other strategies; • SWOT analysis; target selling strategy formulation and implementation, monitoring mechanism, strategies for stagnation versus growth, strategies for growth through expansion versus diversification & diversification vs core competency. • Acquisition and merger strategy, strategy of joint venture both in India and abroad. • Marketing strategy as a part of corporate strategy, growth under inflation and protection of shareholder, real capital. • Financial objectives, non- financial objectives, resources analysis and evaluation.
2.	Forecasting and planning for strategy	10%
	• Forecast trend and changes – social, political, legal and technological impacts. • Distribution channels and competitive forces. Government policies, economic growth and government expenditure. • Public and private sector investments, • International trade practices and government policies for capacity expansion, new industries, subsidiaries and substitutes
3.	Model Building and models	10%
	• Strategies in the development of models, Delphi Model, econometric, mathematical programming, budgetary and heuristic model. • Sensitivity analysis and the characteristics of models. • Limitations in model building vis- a-vis simulation techniques. • Life cycles, Porters generic strategic, Ausoj’s model, BCG matrix and other models
4.	Marketing strategy	10%
	• Production orientation versus market orientation, marketing objectives, framework and management of marketing mix. • Linkage between strategic planning and marketing strategy-both forward and backward. • Research and intelligence- source for the techniques for acquiring information necessary for marketing decisionmaking market shares.
5.	Application of management accounting in strategic management	20%
	• Marketing strategy: analysis of marketing costs and profitability, product development policy & strategy, pricing policies and strategies, budgetary control in marketing, evaluation and control of sales activities; • Operations Management Strategy: process, technology and logistic strategies, inventory policies and strategies, Human Resource Management policies and strategies, • Financial Strategies and Strategic Total Cost Management

B. Risk Management (40%)

6.	Risk Measurement and Management	15%
	• Introduction, Risk and Risk Management, • Objectives of Risk Management, • Risk Measurement and Pooling, Total Loss Distribution, • Pooling and Diversification, • Ruin Probability
7.	Risk insurance:	10%
	• Insurability of Risk and Insurance Contracts, • Insurance Pricing, Analysis Tools, Demand for Risk Management (Utility Theory), • Legal Liability, Corporate Liability, Liability Issues, • Insurance case study: Auto Insurance (or such other insurance industry segment as may be notified ) • Commercial Insurance.
8.	Corporate risk management:	15%
	• Risk Management and Shareholders, • Risk Retention/Reduction, • Financial Risk Management, • Futures and Options, • Asset / Liability Management, • Project risk management, Enterprise Risk Management