Tayabas Western Academy

Founded 1928

Recognized by the Government

Candelaria, Quezon

AE- CO 2

TThS 6:30- 7:30

SCM: SUMMARY OF KEY TAKEAWAYS

Submitted to:

Sir Atienza

Submitted by:

Urbano, Joanna Marie G.

BSA III

07 September 2022
 CHAPTER 1: OVERVIEW OF COST MANAGEMENT AND STRATEGY

I. Concept of Strategy as an Interdisciplinary matter on Firms

The need for strategy was perceived mostly in the contemporary era. It is because there
are growing pressures among industry's competition, economic wars among countries and
dynamic technological innovation which primarily causes business to dissolve. Those business
that are dissolving through the uncertainties of dynamism were proved to have a lack of strategy,
thus, strategy as discussed in previous lesson was a key to gain success in a certain industry
either in terms of its profitability or in other non-financial measures. It also helps to mark
competitive advantages to out-duel competitors in a long run with sustainability. Herein, the
strategy is a well-formed and organized policies that mainly built for a long-term success beyond
curvature and myriad of changes.

II. The principal management function of business

The strategic management as taught is considered as the primary management function in

which it is facilitated through the development of cost management information from the
strategic cost management inclusion. In this case, the prior means of technical preparation of cost
management information through dealing with strategic cost management is mainly featuring the
strategic management for internal use. I perceived that it helps to create managerial decisions for
sound economic choices.

III. Mutual Connection of Cost Management to Cost Management Information

The two terms are indeed associated for the reason that cost management is dealing with
managing cost at a broad concept. Hence, it uses cost management information to perform such
certain performance.

IV. The Essence of Integrative Approach

Integration is a unique aspect of business strategy wherein; it recently barely sees it's
opacity. Unity among business resources is not that easy to deal with, thus, integration approach
to business is a key to attain customer satisfaction. This can be done through collecting all
relevant matters in all business functions and use that selected information for managerial
decisions concerning customer welfare. The main notion that entails the integrative function is
the combination of all skills from all business areas such as in marketing, production, finance
and accounting or controllership.

V. Cost Management Information as the Basic Commodity of All Organizations

As mentioned in previous discussion, the users of cost management information are all of
known organizations. Hence, it can be a firm, government units as well as not-to profit
organization. However, non-profit organizations are conceivably changing throughout the years
as it's also inclining to money. Indeed, organizations cannot be called as one of those without
money which served as the blood that fuels organization to run.
VI. Broad uses of Cost Management Information

There are several important uses of Cost management information in specific business
functions. The allocation of the uses is mainly designed and settled regarding the functions need.
To begin with strategic management which mainly concerning to develop a position that is
considered as sustainable and yet competitive. This involves the essence of strategy in which the
created sustainable position inclined with a long term of success or continuous flourishment of
success. It is a use that make use for the relevant techniques that may distinguished from other
enterprises among and across industries. Followed by planning and decision making which the
main goal is to plan for the budget, profit, cash flow and other associated operation of a firm.
Specifically, in budget, we decide and plan what are necessary expenses to be incurred
throughout the month or even a year. Hence, we allocate those titles with an approximate amount
to spent in any planned expenditure. This assumption gives importance in considering cost
management information which may support decision in any related operation mentioned earlier.
Furthermore, the use in management and operational control. It is required in order to offer an
effective and unbiased basis for classifying not efficient operation and to motivate efficient
manages through reward. There is a distinguishing feature between the two kinds of control.
Specifically, the operational control explains how product managers monitor the production
heads for an instance. Unlike management control which states how chief financial officer
evaluates product or regional managers. Lastly, the use in reportorial and compliance to Legal
requirements which can be able to associate with relevant government agencies such as Bureau
of Internal Revenue and Securities and Exchange Commission.

VII. The Strategic Cost Management Agents

The broad classification of the accountants who specialized in dealing with Strategic cost
management are the Management accountants such as the cost accountants and the likes. As
Strategic cost management develops cost management information to facilitate the strategic
management, the management accountants are concerned to development and analysis of Cost
management information. This was rooted from the fact that they are responsible to provide
variety of reports to managers. Some of which are based on Reductionist Approach wherein the
reports are supported by efficiencies of individual units and time updates on key indicators.
These agents are responsible in three broad tasks scorekeeping or data accumulation, interpreting
and reporting of information and problem-solving. Thus, keep in mind that the tasks should be
able to fit on provision of information to internal managers concerning to planning and
controlling of business operations.

VIII. The Management perspectives through the lenses of Keen-seekers

The managers are the Keen-seekers for the reason that they should have a perspective that
"go beyond the numbers" as highlighted to basic cost management perspectives. The sense that
they are digging beyond what they used to work to will help them to be pre-eminent in planning,
controlling and decision-making for the progression of the firm. There are six mentioned
important perspective that managers should be intelligent in dealing with such as Strategic
management, enterprise risk, corporate social responsibility, process management, leadership
and ethical perspectives. These perspective have different areas of engagement such as in
strategy itself, alleviation of risks, right allocation of needs of stakeholders, process toward
customer service and related matters on process and ethical notion.

IX. Alleviation of Risks for it is Indispensable to Business Nature

Risks are intrinsic upon business formation as it is naturally embedded because risks are
the matters that affects the business negatively. Upon dealing with these, there are a least chance
that it should be avoid but there a big chance that it may alleviate or at least reduce with the use
of strategy. The processes in risk reduction should be in chronological order which starts with
assessment of risks, development, implementation, monitoring, and continuous improvement of
plans. The instances that portraying business risks are products harming customers and website
malfunctioning which are proven to not be completely eliminate but lead to firms to proactively
calculate and reduce risks.

X. Essentials for Stakeholders

Serving stakeholders appropriately is the corporate social responsibility that firms should
be engage to. The customers are the primary stakeholders so the best offers must provide to them
such as safety, convenient information systems and offering high-quality products. The suppliers
are intermediaries that is important to business as well, thus, the trust and smooth transaction
should be maintained. The stockholders should be flourishing with visible management
competency, complete disclosure of risks, and reliable answers to all inquiries they have in mind
for satisfaction. The employees are the gem of the business as they exert labor and effort in
business progression so the wage should be competitive, attain humane working conditions and
opportunities to promote and gain incentives is fairly done.

XI. Process Elevation towards Customer Satisfaction

The value chain shows interaction among business function which ends with quality
customer service. This should be refinery done in order to launch unique product to market.
From the research and development, the software engineer as well as the researchers should be
extra pre-eminent in dealing with relevant matters. As it is the main foundation of the people in
manufacturing department. As soon as the researchers start to innovate notion, the decision
makers should be strict in selecting important features of product and in cancelling the irrelevant
features of it for quality assurance.

XII. Debunking dog-eat-dog war to Business environment

According to what I have researched when I was senior high school, the unethical
relationship of business has been observed because business tend to out-duel their competitors
through immoral doings. So, I understood that by means of maintaining ethics as a central virtue
of the firm will make the business to run smoothly as it bears fundamental trust in the core of
integrity.
 CHAPTER 2: PROFESSIONAL ENVIRONMENT OF COST MANAGEMENT

I. Detailed context of Organization Structure

The organization structure entails the bifurcation of line and staff authority. Herein, the
line authority occurs when the commotion entails the command action or giving orders to its
subordinates. Unlike the staff authority which entails when the commotion deals with advice
rather than commanding others. Based on the discussion, the sales and production managers
perceived the line authority while the personnel, purchasing, engineering and accounting can be
marked as having staff authority.

II. Duties of CFO and its certain areas of Inclination

The module enumerates five common areas of engagement of Chief Financial Officer
such as Controllership, Treasury, Risk Management, Taxation and Internal Audit. Herein, these
areas have special inclination to its distinguished operations. Herein, controllership includes the
provision of financial information, while the treasury includes financing and management of
high liquidity assets. The risk management include assessing and managing risks in terms of
economic derivatives. The taxation includes planning of taxes either national or international tax
itself while internal audit composes of analysis of financial reports for internal use.

III. Reporting Engagements through from Controller up to BOD

Specifically, the controller and treasurer both reports to Chief Financial Officer. Herein,
as the controller provides financial information to managers, the treasurer includes banking and
financing of cash. Those instances should be reported to Chief Financial Officer. While the Chief
Financial Officer is responsible for information system and directly reports to Chief Operating
Officers. In addition, the Chief Operating Officer directly reports to the chairman or chief
executive officer which stands as representative of board of directors. Lastly, board of directors
oversees business condition without dealing from day-to-day operations.

IV. Distinction and Functions of Top Management Accountant

For many firms the controller and chief financial officer are the same person however it
should keep in mind that controllership is a distinguished responsibility inside the business. As it
is the practice of established empirical of control which is the synthesis by which management
ensures that resources utilized strictly based to plans.

V. Categorical Functions of Controllership within Organization

To have a detailed gauge to the sense of Controllership the module enumerates its five
basic functions. To begin with planning, which primarily served as the foundation of established
and integrated plan. The control entails the revision and development of standards against which
to measure performances. Reporting includes the preparation, analysis, and interpreting financial
results for optimization by management though decision making. Herein, accounting refers to
systems that entailing the general and cost accounting phases. Other preliminary responsibilities
include auditing and taxation which with the respective interaction to taxing authorities and
agents.
VI. Key features of Controller's Character Possessions

There are many qualifications that a controller should have in order to be accredited as
effective controller. One of these is having excellent technical foundation in accounting. Also, in
depth understanding to management functions as well as in broad concept of industries. Entailed
by the motivation of others to reach positive results and actions.

VII. Ideology for Treasurership

As explained in the role of treasurer which primarily engaging to management of cash

there are four explicit responsibilities. It includes the funds procurement, banking and custody of
funds, and investment of funds.

VIII. Moral nuances embedding Management Accountants

The Management Accountants should be molded and shaped their integrity from ethical
standards. Herein, nourishment of ethical behavior raised accordingly through process of
obedience.

IX. Lapses of Implementation of Ethics in Working Environment

In any standards the complete obedience from employees are quietly impossible to
perceived for the reason that there is a counterpart featuring disobedience. For instance,
unreliability of employees with confidential information have the possibility to deteriorate
operations. This instance is connected to accepting bribes from suppliers and grossly distortion
of financial statements which are immorally unaccountable.

X. In-depth perception towards Standards of Ethical Conduct for Practitioners of

Management Accounting and Financial Management

These professionals have respective obligation public, profession itself and organization
they are engaging to. Herein, enumerated possession attributes shall be satisfied such as having
competence, confidentiality, integrity and objectivity, these matters ensure quality
professionalism and moral enhancement.

CHAPTER 3: CONTEMPORARY BUSINESS ENVIRONMENT AND STRATEGIC

FOCUS OF COST MANAGEMENT

I. Increase in Global Competition

As the globalization widens the field of markets in the industry, new entrants have
numerously observed. Herein, it emphasizes that the global competition is extremely been
observed.

II. Advances in Manufacturing Technologies

The enhancement of technological features had been issued to many developed and
developing countries in which it influenced their selection of machinery and optimization of
equipment to perform specific function in production.
III. Advances in Information Technologies

Perceivably the most in demand kind of business nowadays is e-commerce as it widely

utilizing Internet to create webpage of a certain business. Herein, selling products as well as it's
advertisement were solely found in Internet hence their transactions were documented on
personal and business accounts.

IV. Greater focus on the customer

Just like in the Strategic Cost Management part one which showcases the use of
integrative approach, it simplifies the fact that all business means is for customers’ satisfaction.
A key stakeholder that a business have is the customers wherein they conduct business strategy
for the sake of entailing quality and functionality of products.

V. New forms of Management Organizations

As for the reason that the ultimate focus of business is the customer's satisfaction the
forms of management organization also shifted into customer-related quality and efficiency.
Therefore, the profusion of network-based communication strategy among managers and
employer to business had been observed. Unlike the hierarchical and direct evaluation of
command and control among members.

VI. Changes in significant environment of business

The changes in social, political and cultural environment affects the business provision of
services and production of products. As the social environment changes the former preferences
can be able to shift to new one. Thus, adjustment on production in terms of types and numbers
can be conceivably done. As well as to political which can either be legal compliance to business
contract can amend as the time goes by.

VII. The Corporate Executives

From the inclination to cost data that marked successful projections the corporate
executives make use of cost management. Herein, the adaptability of management accounting
systems was done to reach management requisition and for a longer survival within competition.

VIII. Speed to Market

The pace on which the products and services launch to market can be a competitive edge
among similar industries. Thus, the faster the offering delivered the greater competitive edge it
may attain.

IX. Product Value

In such case that diversity of elements inclining to products such as prices, functionality,
warranty and quality are affecting the customer's valuation to products or services. Herein, Cost
information plays a crucial role as it employs the strategic cost management to attract customers
for such being user and financially friendly to them. In attaining value of products and services
to the customer the business must showcase the cost leadership and differentiation of superior
product strategies.
X. Pursuance of Two General Strategies

To be able to attain success in mentioned strategies such as cost leadership and

differentiation it necessitates an understanding of a business internal and internal value. In which
the internal value came from the value chain while the external matter were framed by supply
chains.
 Tayabas Western Academy

Founded 1928

Recognized by the Government

Candelaria, Quezon

AE- FN 5

TThS 7:30- 8:30

SBA: SUMMARY OF KEY TAKEAWAYS

Submitted to:

Sir Atienza

Submitted by:

Urbano, Joanna Marie G.

BSA III

07 September 2022
 CHAPTER 1: WHERE IS THE ORGANIZATION NOW?

I. Building blocks in Understanding Strategy within Organization

The organization is mainly comprising of several building blocks which strategy arises.
These are the performance, synergy and fit, structure, parenting, processes, markets, resources
and capabilities, environment, stakeholders, competitive advantage, customers and products.
Understanding these terms can be able to help business to also recognize important and
appropriate strategy to deal with.

II. Unifying Holistic and Reductionist Approach to deal with Analysis

A corporate is collective title in which business unit inclined to. Herein, in order to come
up with an efficient strategy it should be able to identify first the matters inside of every
individual unit. Therefore, after all sole evaluation done the holistic approach should come into
second action to have in depth consideration in interwoven level of analysis inside the corporate
level.

III. Algorithms reflects the structure of Analytical Processes

In the textbook algorithm portrays the sense of analytical Processes in which it entails the
obedience in following procedures that plays a vital role in helping reader to ask relevant
questions to studied organizations. Hence, key questions should be an ideal matter to be consider
in the future operation of specific enterprise. Same as the analytical Processes the algorithm have
stages of analysis which important basis of each chronological procedure. It also helps analyst to
undergone creative interpretation as algorithm come into existence.

IV. Organizational Structure as a map of Roles

The organization structure as the word implies help the analyst to give duties to certain
role that a person deals with. As it is enclosing the activities and indicative functions of specific
position in which balanced of power may observe.

V. Arguing criticism to Portfolio Models

In the perception of the analyst and the scholars who studying Strategic Business
Analysis, the portfolio models can be a powerful conceptual tool that adhere efficiency and
ignites strategic thinking. However, for some the portfolio models were abandoned for the reason
that it is the source of inappropriateness and misleading in analysis.

VI. The concept of Market Segment

The market segment is a formed group of consumers who can be able to categorized in
different dimensions. The dimensions can be able to separate individuals and in organizations.
There is a variation of degrees in terms of determining market segment which lead to a business
to study their preferences.
VII. Bifurcated views of Private and Non-Private Sectors

The private and Non-private sectors can be distinguished on how they view the sense of
success. Herein, in terms of private sector the financial success is the solely long-term aspect that
can guarantee the survival of business amidst of myriad of similar industries. Unlike in the view
of Non-private sectors which have more complex of criteria in terms of considering success
which can be able to assure upon using right indicators.

VIII. In Provision of Services and Products necessitates Resources

The resources can be able to identified as the labor, capital and raw materials as well as
special task that entrepreneurs deal with. Indeed, in order to make products and perform services
there is need for resources either asset or competence to properly optimize.

IX. Volatility of External Factors affecting Business Provision

There are many areas that affecting the provision of products and services of an
enterprise. The book enumerated three of the areas such as organizational, competitive and wider
environments deviated into five broad range. Herein, amendments in any of the mentioned
organizations may affect the production of the goods and performance of obligations by means
of service.

X. Holistic Analysis within Reductionist Relationships

Reductionist theory is important within the complexities of corporate level. For instance,
the operation as well as adjustments in production sector of strategic business unit should be able
to consider before taking up holistic action in the corporate as a whole. The means of unification
can be able to track upon using of holistic corporate analysis to assess level and control
corrective measures collectively.

CHAPTER 2: WHAT OPTIONS ARE OPEN TO THE ORGANIZATION?

I. Six Significant Choices for Corporate Level Personnel should deal with

From the fact that risk is inevitable to business there is an importance to know what are
options that may applicable to the organizations. In a corporate level can involve decisions about
business closure, disposal, acquisition, re-organization, start up and the impact of doing nothing
different. Whatever, the options that analyst select as the best alternative, it should be verified
despite of all complexities.

II. Concept of Portfolio balance

 The portfolio models are useful tools for appraising multi-business organizations. Herein,
the examples of this is the Boston consulting group matrix and general electric matrix. The
necessity of business fit is an efficient tool for business analysis.

III. Importance of SWOT analysis as Culminating tool

The SWOT analysis has a broad cover for both internal and external factors affecting
business unlike the PESTEL which only includes the external part. Herein, the analyzing the
strengths and weaknesses features the internal capacities and lapses of the business. However,
the elucidation of opportunities and threats covers the external risks and incentives for the
business. The internal factors if analyzed help the business to enhance intrinsic value while
external factors if analyzed help to calculate uncertainties and expand merits.

IV. The Big Three by Ansoff

In engaging to business analysis, the three dimensions should be considered regarding the
present and foreseen aspects. These three are market geography, market needs as well as
product-services technology. Wherein, these three terms are only basis for completion of mission
of the b to business.

V. Debunking misconceptions about Model as Direct replication of Reality

As the name implied "model" cannot be considered as replication of Reality because it is

a mere theory which is not concretized. Herein, the use of model can be convenient in the sense
that approximate also crucial in business analysis. Therefore, the final activities mainly
dependent also in manager's judgement as they are specifically studied to conduct such facet.

VI. Interwoven facet between Maintaining Resource and Developing Products

The resources maintenance and products enhancement can be a competitive aspect of

business. Herein, the flow of innovation in terms of maintaining resources that are in demand as
well as resources replacement upon which development is needed had been a great key to
understand the essence of matrix. From the fact that generation possessing variances of
preferences as well as they are changing overtime the means of Maintaining and development is
important.

VII. Uncalculated Amendments in Strategy may result Declines to Business

The book enumerated seven signs that a business can possibly undergone to deposition. It
includes the poor management which mainly assessed through the capacities of managers to lead.
The inadequacy of financial control despite of high cost structure also leads discrepancies to
business as both of matters are unmatched. Also, lacking of marketing efforts and observance of
competitive weakness but not addressing it can lead to have lapses during its projects acquisition
amidst of unstructured financial policy.

VIII. Appeal to expansion bridges Business to Reposition

 If the business does not encounter any of the mentioned lapses that causes deposition, the
firm can be able to expand its market by means of wider appealing in geographic area. This can
be able to assess when opportunities are met and threats are calculated. Through the use of
resources and competences the expansion can be able to attain just like the repositioning stance
of Skoda.

IX. Notions about Market-based Perspective

Market-based perspective entails the bifurcation which includes flows or moving of new
products and markets that have the same dimensions to a former stakeholders served. Herein, the
main concern is offering products but with inclination to former consumers. It also showcases
the relatedness in production just like the sense of expanding modified products into markets.

X. Over lapses of Chain Activities bears Viable Relatedness

The significance of over lapses is related to resource-based perspective in which it mainly

optimized resources as market entry facilitators. Herein, the gauge can be influx to the sense of
reaching enough resources as an advantage in new markets. From the word itself, it mainly
utilizes resources in determining competitive advantage.