BASIC CONSIDERATION IN MANAGEMENT ADVISORY SERVICES Flashcards
This refer to the function of providing professional advisory (consulting) services, the primary purpose of which is to improve the client’s use of its capabilities and resources to achieve the objectives of the organization
Management Advisory Services
This is also known as “overall or strategic planning. This is done by the top management. i.e., board of directors or governing body. It encompasses the long-range objectives and policies of organization and is concerned with corporate results rather than sectional objectives.
Top Level Planning
This strategy focuses on how to attain and satisfy customers, offer goods and services that meet their needs, and increase operating profits. To do this, it focus on positioning itself against competitors and staying up to date on market trends and technology changes.
Business Level Strategy.
These ae agreements between two or more independent companies to cooperate in the manufacturing, development, or sale or products.
Strategic Alliances
This is when a business makes a decision that affects the whole company. A corporate-level strategy affects a company’s finances, management, human resources, and where the products are sold.
Corporate Level Strategy
This refers to the methods companies use to reach their objectives. By developing these strategies, a company can examine and implement effective and efficient systems for using resources, personnel, and the work process.
Operational Strategies
BASIC FUNCTIONS OF MANAGEMENT
It is the basic function of management. It deals with chalking out a future course of action & deciding in advance the most appropriate course of action for the achievement of predetermined goals.
According to KOONTZ, this is deciding in advance-what to do, when to to & how to do it.
This is a future course of action. It is an exercise in problem-solving & decision making.
This is determination of course of action to achieve desired goals. Thus, is a systematic thinking about ways & means for accomplishment of pre-determined goals.
It is necessary to ensure proper utilization of human & non-human resources. It is al pervasive, it is an intellectual activity and it also helps in avoiding confusion, uncertainties, risks, wastage etc.
Planning
BASIC FUNCTIONS OF MANAGEMENT
It is the process of bringing physical, financial and human resources and developing productive relationship amongst them for achievement of organizational goals.
According to Henry Fayol, To organize a business is to provide it with everything useful or its functioning i.e., raw material, tools, capital and personnel’s.
To organize a business involves determining & providing human and non-human resources to the organizational structure.
This process involves:
- Identification of activities
- Classification of grouping of activities
- Assignment of duties
- Coordinating authority and responsibility relationships
Organizing
BASIC FUNCTIONS OF MANAGEMENT
It is the function of manning the organization structure and keeping it manned. This function assumed greater importance in recent years due to advancements f technology, the increase in the size of business complexity of human behavior, etc.
The main purpose of this function is to put the right man on the right job.
According to Kootz & O’Donell, Managerial function of this involves manning the organization structure through proper and effective selection, appraisal & development of personnel to fulfill the roles designed in the structure.
This involves:
- Manpower Planning (estimating man power in terms of searching, choose the person, and giving the right place)
- Recruitment, Selection & Placement
- Training & Development
- Performance Appraisal
- Promotions & Transfer
Staffing
BASIC FUNCTIONS OF MANAGEMENT
It is that part of managerial function which actuates the organizational methods to work efficiently for achievement of organizational purposes. It is considered life-spark of the enterprise which sets it i motion the action of people because planning, organizing and staffing are the mere preparations for doing the work.
This is that inert-personnel aspect of management which deals directly with influencing, guiding, supervising, motivating sub-ordinate for the achievement of organizational goals.
This has following elements:
- Supervision
- Motivation
- Leadership
- Communication
Directing
This implies overseeing the work of subordinates by their superiors, It is the act of watching & directing work & workers
Supervision
Ths means inspiring, stimulating, or encouraging the sub-ordinates with zeal ti work. Positive, negative, monetary, and non-monetary incentives may be used for this purpose.
Motivation
This may be defined as a process by which manager guides and influences the work of subordinates in desired direction
Leadership
This is the process of passing information, experience, opinion etc from one person to another. It is a bridge of understanding
Communications
Implies measurement of accomplishment against the standards and correction of deviation if any to ensure achievement of organizational goals.
Controlling
SEVEN KEY DIFFERENCES BETWEEN MANAGERIAL ACCOUNTING AND FINANCIAL ACCOUNTING AS NOTED BY IMA
These are reports for external users
a. Financial Accounting
b. Managerial Accounting
SEVEN KEY DIFFERENCES BETWEEN MANAGERIAL ACCOUNTING AND FINANCIAL ACCOUNTING AS NOTED BY IMA
These are reports for external users
a. Financial Accounting
b. Managerial Accounting
a. Financial Accounting
SEVEN KEY DIFFERENCES BETWEEN MANAGERIAL ACCOUNTING AND FINANCIAL ACCOUNTING AS NOTED BY IMA
These reports are for internal users
a. Financial Accounting
b. Managerial Accounting
b. Managerial Accounting
SEVEN KEY DIFFERENCES BETWEEN MANAGERIAL ACCOUNTING AND FINANCIAL ACCOUNTING AS NOTED BY IMA
This summarizes past transactions
a. Financial Accounting
b. Managerial Accounting
a. Financial Accounting
SEVEN KEY DIFFERENCES BETWEEN MANAGERIAL ACCOUNTING AND FINANCIAL ACCOUNTING AS NOTED BY IMA
This has a strong emphasis on the future
a. Financial Accounting
b. Managerial Accounting
b. Managerial Accounting
SEVEN KEY DIFFERENCES BETWEEN MANAGERIAL ACCOUNTING AND FINANCIAL ACCOUNTING AS NOTED BY IMA
This data should be objective and verifiable
a. Financial Accounting
b. Managerial Accounting
a. Financial Accounting
SEVEN KEY DIFFERENCES BETWEEN MANAGERIAL ACCOUNTING AND FINANCIAL ACCOUNTING AS NOTED BY IMA
This data should be relevant
a. Financial Accounting
b. Managerial Accounting
b. Managerial Accounting
SEVEN KEY DIFFERENCES BETWEEN MANAGERIAL ACCOUNTING AND FINANCIAL ACCOUNTING AS NOTED BY IMA
This focuses on precision
a. Financial Accounting
b. Managerial Accounting
a. Financial Accounting
SEVEN KEY DIFFERENCES BETWEEN MANAGERIAL ACCOUNTING AND FINANCIAL ACCOUNTING AS NOTED BY IMA
This focuses on timeliness of information
a. Financial Accounting
b. Managerial Accounting
b. Managerial Accounting
SEVEN KEY DIFFERENCES BETWEEN MANAGERIAL ACCOUNTING AND FINANCIAL ACCOUNTING AS NOTED BY IMA
This is concerned with reporting for a company as a whole
a. Financial Accounting
b. Managerial Accounting
a. Financial Accounting
SEVEN KEY DIFFERENCES BETWEEN MANAGERIAL ACCOUNTING AND FINANCIAL ACCOUNTING AS NOTED BY IMA
This focuses on segments of a company
a. Financial Accounting
b. Managerial Accounting
b. Managerial Accounting
SEVEN KEY DIFFERENCES BETWEEN MANAGERIAL ACCOUNTING AND FINANCIAL ACCOUNTING AS NOTED BY IMA
This must conform to financial accounting reporting standards
a. Financial Accounting
b. Managerial Accounting
a. Financial Accounting
SEVEN KEY DIFFERENCES BETWEEN MANAGERIAL ACCOUNTING AND FINANCIAL ACCOUNTING AS NOTED BY IMA
This does not bound by financial accounting standards
a. Financial Accounting
b. Managerial Accounting
b. Managerial Accounting
SEVEN KEY DIFFERENCES BETWEEN MANAGERIAL ACCOUNTING AND FINANCIAL ACCOUNTING AS NOTED BY IMA
This a mandatory
a. Financial Accounting
b. Managerial Accounting
a. Financial Accounting
SEVEN KEY DIFFERENCES BETWEEN MANAGERIAL ACCOUNTING AND FINANCIAL ACCOUNTING AS NOTED BY IMA
This is not mandatory
a. Financial Accounting
b. Managerial Accounting
b. Managerial Accounting
FINANCIAL ACCOUNTING vs COST ACCOUNTING
This assist external users with business decisions centering on a variety of issues such as the purchase and sale of stock, issuance of loans, etc.
a. Financial Accounting
b. Cost Accounting
a. Financial Accounting
FINANCIAL ACCOUNTING vs COST ACCOUNTING
This has an internal focus. It also identifies, collects, measures classifies, and reports information that is used by managers for costing purposes, planning, controlling, and decision making
a. Financial Accounting
b. Cost Accounting
b. Cost Accounting
COST ACCOUNTING vs MANAGEMENT ACCOUNTING
This attempts to satisfy costing objectives for both financial and management accounting
a. Cost Accounting
b. Management Accounting
a. Cost Accounting
COST ACCOUNTING vs MANAGEMENT ACCOUNTING
This is concerned specifically with how cost information and other financial and non-financial information should be used for planning, controlling, and decision-making.
a. Cost Accounting
b. Management Accounting
b. Management Accounting
ROLES AND ACTIVITIES OF CONTROLLER AND TREASURER
Provision of capital
a. Controller
b. Treasurer
b. Treasurer
ROLES AND ACTIVITIES OF CONTROLLER AND TREASURER
Investor relation
a. Controller
b. Treasurer
b. Treasurer
ROLES AND ACTIVITIES OF CONTROLLER AND TREASURER
Short-term financing
a. Controller
b. Treasurer
b. Treasurer
ROLES AND ACTIVITIES OF CONTROLLER AND TREASURER
Banking and custody
a. Controller
b. Treasurer
b. Treasurer
ROLES AND ACTIVITIES OF CONTROLLER AND TREASURER
Credits and collection
a. Controller
b. Treasurer
b. Treasurer
ROLES AND ACTIVITIES OF CONTROLLER AND TREASURER
Investments
a. Controller
b. Treasurer
b. Treasurer
ROLES AND ACTIVITIES OF CONTROLLER AND TREASURER
Insurance
a. Controller
b. Treasurer
b. Treasurer
ROLES AND ACTIVITIES OF CONTROLLER AND TREASURER
Planning and control
a. Controller
b. Treasurer
a. Controller
ROLES AND ACTIVITIES OF CONTROLLER AND TREASURER
Reporting and interpreting
a. Controller
b. Treasurer
a. Controller
ROLES AND ACTIVITIES OF CONTROLLER AND TREASURER
Evaluating and consulting
a. Controller
b. Treasurer
a. Controller
ROLES AND ACTIVITIES OF CONTROLLER AND TREASURER
Tax administration
a. Controller
b. Treasurer
a. Controller
ROLES AND ACTIVITIES OF CONTROLLER AND TREASURER
Government reporting
a. Controller
b. Treasurer
a. Controller
ROLES AND ACTIVITIES OF CONTROLLER AND TREASURER
Protection of assets
a. Controller
b. Treasurer
a. Controller
ROLES AND ACTIVITIES OF CONTROLLER AND TREASURER
Economical appraisal
a. Controller
b. Treasurer
a. Controller
MISSION vs VISION
This decribes the desired future position of the company. (How do you forsee yourself in the future?)
a. Mission Statement
b. Vision Statement
LINE vs STAFF AITHORITY
Those that have the responsibility and authority for achieving the major goals of the corporation. Typically, these goals are targets for revenues and profits. They are directly involved in the daily operations of the business by selling or producing a product or service.
a. Line Authority
b. Staff Authority
a. Line Authority
LINE vs STAFF AUTHORITY
CFO
a. Line Authority
b. Staff Authority
a. Line Authority
LINE vs STAFF AITHORITY
The primary purpose is to provide assistance and specialized advice and expertise to colleagues in line positions
a. Line Authority
b. Staff Authority
b. Staff Authority
LINE vs STAFF AUTHORITY
Controller
a. Line Authority
b. Staff Authority
b. Staff Authority
LINE vs STAFF AUTHORITY
Treasurer
a. Line Authority
b. Staff Authority
a. Line Authority
LINE vs STAFF AUTHORITY
COO
a. Line Authority
b. Staff Authority
a. Line Authority
LINE vs STAFF AUTHORITY
Marketing
a. Line Authority
b. Staff Authority
a. Line Authority
LINE vs STAFF AUTHORITY
Production
a. Line Authority
b. Staff Authority
a. Line Authority
LINE vs STAFF AUTHORITY
Foreman
a. Line Authority
b. Staff Authority
a. Line Authority
LINE vs STAFF AUTHORITY
HR
a. Line Authority
b. Staff Authority
b. Staff Authority
LINE vs STAFF AUTHORITY
IT
a. Line Authority
b. Staff Authority
b. Staff Authority
MISSION vs VISION
This defines the company’s business, its objectives and its approach to reach those objectives. (Bakit ka nandito? Anong gusto mong mangyari?)
a. Mission Statement
b. Vision Statement
a. Mission Statement
MISSION vs VISION
This decribes the desired future position of the company. (How do you forsee yourself in the future?)
a. Mission Statement
b. Vision Statement
b. Vision Statement
SOURCES OF COMPETITIVE ADVANTAGE
MICHAEL PORTER’S THREE GENERIC STRATEGIES
Increasing by reducing costs, while charging industry-average prices. (Offer affordable products but the quality is high)
a. The Cost Leadership Strategy
b. The differentiation Strategy
c. The Focus Strategy
a. The Cost Leadership Strategy
SOURCES OF COMPETITIVE ADVANTAGE
MICHAEL PORTER’S THREE GENERIC STRATEGIES
This involves making your product or services different from and more attractive than those of your competitors. (Unique products > can offer a very high price)
a. The Cost Leadership Strategy
b. The differentiation Strategy
c. The Focus Strategy
b. The differentiation Strategy
SOURCES OF COMPETITIVE ADVANTAGE
MICHAEL PORTER’S THREE GENERIC STRATEGIES
This concentrate on particular niche markets and by understanding the dynamics of that market and the unique needs of customers. (Target Market)
a. The Cost Leadership Strategy
b. The differentiation Strategy
c. The Focus Strategy
c. The Focus Strategy
MICHAEL PORTER’S THREE GENERIC STRATEGIES
TWO TYPES OF FOCUS STRATEGY
This is creating a product that will cater to mid-range and low-end consumers. (More on operating leverage)
a. Focus on Cost Leadership
b. Focus on Product Differentiation
a. Focus on Cost Leadership
MICHAEL PORTER’S THREE GENERIC STRATEGIES
TWO TYPES OF FOCUS STRATEGY
The target market is the high-end market. (More on profit margin)
a. Focus on Cost Leadership
b. Focus on Product Differentiation
b. Focus on Product Differentiation
IDENTIFYING AND BUILDING RESOURCES AND CAPABILITIES
This is matching knowledge of marketplace opportunities and threats with the company’s resources and capabilities.
a. Strategic Analysis
b. Balance sheet information about assets
a. Strategic Analysis
IDENTIFYING AND BUILDING RESOURCES AND CAPABILITIES
BALANCE SHEET INFORMATION ABOUT ASSETS
This is intended to give management an idea of the company’s liquidity.
i. Cash adequacy
ii. Inventory management
a. Current resources
b. Long-term productive assets
c. Intangible Assets
a. Current resources
IDENTIFYING AND BUILDING RESOURCES AND CAPABILITIES
BALANCE SHEET INFORMATION ABOUT ASSETS
This is an important strategic decisions for the right investments. These are needed to support operating activities long-term profitability. These are capital goods needed to produce the final product or service offered by the company
i. Analyze trends and measure efficiencies
ii. Develop network of relationships with customers and suppliers
iii. Identify financial and nonfinancial costs and benefits associated with alternative choices
a. Current resources
b. Long-term productive assets
c. Intangible Assets
b. Long-term productive assets
IDENTIFYING AND BUILDING RESOURCES AND CAPABILITIES
BALANCE SHEET INFORMATION ABOUT ASSETS
These are assets that lack physical attributes or existence but generate cash flows for the company.
a. Current resources
b. Long-term productive assets
c. Intangible Assets
c. Intangible Assets
MICHAEL PORTER’S 5 COMPETITIVE FORCES
This refers to the number of competitors and their ability to offer goods and services at a lower price than the company.
-Red ocean > too many competitors
-Blue ocean > Less competitors
-Position?
>Market leader - setting the standard
>Challenger - compete head to head with market leader
> Follower - low end market
>NIcher - special field
a. Competition in the Industry
b. Potential of New Entrants into an Industry
c. Power of Suppliers
d. Power of Customers
e. Threats of Substitutes
a. Competition in the Industry
MICHAEL PORTER’S 5 COMPETITIVE FORCES
The less time and money its costs for a competitor to enter a company’s market and be an effective competitor, the more an established company’s position could be significantly weakened
-Possible competitors can enter the market
-Different Types of Market According to Economics
>Pure Competition - very easy to enter the market
>Monopoly - difficult to enter the competition
> Oligopoly - Difficult to control the market (few players)
>Monopolistoc competition - anyone can enter the market but offer unique product
a. Competition in the Industry
b. Potential of New Entrants into an Industry
c. Power of Suppliers
d. Power of Customers
e. Threats of Substitutes
b. Potential of New Entrants into an Industry
