SMA References

Question 1

Porter (1985)

Answer 1

Suggests three generic strategies to achieve sustainable competitive advantage:
- cost leadership
- differentiation
- focus
also advocates use of VC analysis

Question 2

Porter (1996) definition of strategy

Answer 2

performing different activities from rivals or performing similar activities in different ways

Question 3

Porter (1996) 4 key positions of what strategy is and is not

Answer 3

1. operational effectiveness is not strategy
2. strategy rests on unique activities
3. a sustainable strategic position requires trade-offs
4. fit drives both competitive advantage and sustainability

Question 4

Porter (1996) believes organisations should

Answer 4

• avoid not making choices
• avoid growth for growths sake
• have competent leaders

Question 5

Lord (1996) strands on what SMA is

Answer 5

1. extension from the internal focus of TMA to include external info about competitors
2. relationship between the strategic position chosen by a firm and its expected emphasis on MA
3. gaining competitive advantage through exploiting linkages in the value chain

Question 6

Bromwich (2001)

Answer 6

external info: benefits that products offer to customers

Question 7

Kaplan (1984)

Answer 7

influenced the introduction of SMA by proposing a need for ‘new’ management accounting techniques