Issues in Management Accounting - Coursework Example

THEORIZING STRATEGY by Name Code + Course Instructor Institution of Affiliation City, State Date Theorizing Strategy Over time, the strategic management accounting has been used as a tool in literature constituting to the management accounting procedures. The circumstance form part of the studies done for the past 20 years challenging its existence with some terming it as an “academic imagination figment”. According to the model, it affirmed that SMA during accounting literature was taken over by the middle managing range with the activities involved being conducted without the input of detailed accounting at the same time failing to include SMA information quantification. Management accountants further failed to collect and use the quantified accounting figures. A further survey conducted by Langfield-Smith in the year 2008 suggested that strategic management has never been accepted to be the accounting practice with its language being applied to other professions apart from business. The authors have tried to hypothesize the reason behind failures experience during the application of SMA due to various factors like lack of compelling evidence suggesting its use during empirical studies, the benefits through evidence basis and lack of SMA adoption that would make it more successful soon after it is implemented. Theories have shown that SMA fails to have an agreement definition, set of practices and a conceptual framework form part of its limitations towards implementation. SMA interest has grown since the introduction of strategic management accounting, but the authors' theories that host evidence from recent researches are based on the particular strategic concept. This proposed concept aligning the management accounting ideas is instrumental and deterministic towards organizational strategizing. This results to questioning the benefits of creating a rationalistic and scientific tradition, viewing the concept as an important top-down action where strategic policies govern practice. The management accounting scholars alignment with world’s materialists and normative results to various SMA data preoccupied with highly “shoehorning” setting towards account management. The authors focused on advocating for cost approach and formulating a strategy using cost driver and value chain analysis at the same time involving the investment appraisal as a strategic management tool. Other methods examined various management accounting practices like benchmarking and performance management, attribute costing, and life cycle is costing. These factors are further extended by the authors showing the existing labeling techniques like cost management and strategic pricing. The thinking is reverse because the strategy suggested by the Directorate accountants is based on the plans enriched during SMA practices. The authors try to combine other scholarly works challenging the SMA prevailing viewpoints or what it might become in the future. This challenges the management accountants’ capacity when engaging with complex management accounting having single accounting figures when provided with their preoccupation and training with bean-counting and number crunching. Furthermore, the author tries to theorize the synergistic relationship existing between marketing colleagues and finance experts apart from the comprehensive approach on toolbox seen in the strategic management literature. The authors further focused on the Roslender and Hart work maintaining that strategic management accounting should not be regarded as the management accounting by accountants or resonate with the managerial practices and disclosure. The authors tries to bring in alternative perspective like the “Strategy as Practice” cohort recognizing strategy as developing in different and new dimensions. The researchers under this cohort, as suggested by the authors maintains that their primary focus is the work that the strategist performs in their field of work recognizing the strategic practices that are not deliberately mechanical during their operation. Indicating that strategy forms the work process where there exist strategic determinations allowing the strategies practice to be based on social construction shift in the disclosure priorities and strategic positioning. Under ASAP, it creates multiple spaces for the performing actors like the middle managers who are supposed to be seen as orientation strategists apart from operational managers. Research Design Analysis The authors used the interdisciplinary and case study analysis when identifying the mechanism and intermediaries underlying the strategic practice process. The research used the multiple methodologies which were consistent with the Strategy as Practice cohort, and the entire design covered the study settings, the information sources and data analysis. Study Setting The research relied entirely on two cities, one in the United States and the other one in Canada. These cities are Toronto and New York which are symbiotically related for sharing some common business strategies. In the US, New York is a representative of less that 10% of the total population, and there is need for increasing the number of states during further research studies eliminating any form of biases and disparities. The city of NY constitutes an established “cultural capital” Broadway in the northern American coast. The success of its local market triggers diffusions towards most local and distant markets. Toronto is referred to as the Broadway North and not lucrative or prestigious like NY’s Broadway but forms a likely location for developing new products, broadways presentation and try out shows. The theaters are different in size with Broadway having a market of about 25 million and 39 theaters, several million tourist bases annually. On the other side, Toronto stage is smaller having only four operational stages enough to hold big theatrical productions and the market holds about 7 million people. This is out of 57 theaters present calling for the need to expand them so that SMA can be improved in Toronto. Furthermore, the author does not broaden the reason behind failure to expand the reexamining 53 theaters. However, the author explains that the paper was to examine the strategizing practices between Toronto and New York. Information Gathering The authors relied on the key informants’ interviews, available public documents, and attendance during the trade events although they do not provide ethical consideration among the subjects. Scrutinizing the public productions and theater materials were carried out inclusive of the industry blogs, websites, newspaper and journals helping to trace significant production developments. The authors do not mention the authenticity of the blogs used which are sometimes considered inefficient because of biases. Team member further attended the key events for collecting firsthand information and these events were theater season announcements, annual awards show, and industrial association profiling events facilitating observation, learning at the same time talking with participants, public and the organizers. This promoted understanding of the main strategies, vocabularies, and practices used in the industry. Furthermore, the semi-structure interview was applied during data collection through the use of public participation events and data present drawing key informants and elements using prominent individuals. Two people from production and theater were interviewed, three from the marketing field, three from industry organization and two from the media although the author does not explain the reason for selection them. The interview took between 50 and 120 minutes which is too long for some participants and therefore should be reduced to around 20 or fewer minutes. Data analysis Observations and meeting the people engaging in strategizing in various settings assisted in obtaining the Association Strategic Alliance Professionals perspective. The economic production case study was based on questions asking important strategic practice first participants during new product development, plan set aside increasing the likelihood towards new product perception in terms or value and worth. Use of the multiple dimensions gave the authors a better understanding of practice and management in theaters although they did not explain how the interview data was recorded and analyzed statistically. The research design applied during analysis was efficient although there was a need for additional of other market places in Canada and US to reduce biases. Significant Findings The study put much emphasis on the launching of the West End Musicals whose development requires a lot of reading at the same time expensive. Theater producers and owners, therefore, require selecting the investing shows promoting positive returns. They must further strategize on managing the market route involving expectations creation management because of commutations by refined product industries inclusive of the commercial theater due to product differentiation. Originality and novelty are factors the authors suggest to be included in shows although they result to uncertainty using hindrance to efficient market acceptance requiring interventions. More so, every consumer needs making a buying decision based on experience related goods to avoid any disappointing risk through the third party recommendations and validations for satisfaction. Producers have further required shape the market development apart from focusing on product development when integrating the culture content intensive market products during the practice on the strategic social organization. Furthermore, producers are required to provide awareness in case of a new and unfamiliar product they tend to introduce in the market through validation offsetting inherent uncertainty. It can be achieved when the intermediaries publish interviews with various actors, annual awards nominations, experience sharing and reviews writing answering the questions discussed before. A challenging practical strategic insight is represented in the findings when providing the SMA fresh approach pointing out that when theater managing accountants collaborate strategically, there is a need for creating connections with the broader institution and social settings. Additionally, there is a need for further research where there exist modern cultures having creative industries operating within the marketing sectors. The nature seen during emerging of product and theaters reflects on the new product strategies represented the distinct strategic model in the form of practice during show management where the accounting role is limited and ex-post. Applying the evidence-based research finding creates a way forward towards promoting SMA innovations which in turn reduces risks during accounting management implementations. The findings from the research article are evidence based and therefore have great impact once they are implemented in business during strategic management. The aim of carrying out a business management is to create profits and reducing risks. Applying the evidence based data provides positive outcomes soon after application of research outcomes as explained by the authors. Reference List Langfield-Smith, K., 2008. Strategic management accounting: how far have we come in 25 years?. Accounting, Auditing & Accountability Journal, 21(2), pp.204-228. Lapsley, I. and Rekers, J.V., 2017. The relevance of strategic management accounting to popular culture: The world of West End Musicals. Management Accounting Research. Roslender, R. and Hart, S.J., 2002. Integrating management accounting and marketing in the pursuit of competitive advantage: the case for strategic management accounting. Critical Perspectives on Accounting, 13(2), pp.255-277. Read More