CWA ICWA Final : Group III - Management Accounting -Strategic Management

ICWAICWA ICWA (2008)FinalSyllabus and Books • Group III - Management Accounting -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 Strategy10%
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 strategy10%
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 models10%
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 strategy10%
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 management20%
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 Management15%
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

Recommended Books

The strategic Management HandbookKenneth I.AlbertMcGraw Hill
Strategic ManagementH.I.AnsoffJohn Wiley
Corporate StrategiesB.P.BangerjeeOxford University press
Tools & techniques for strategic ManagementP.B.McNameePergamon Press
Marketing Management: Analysis, planning & ControlP.B.McNameePrentice Hall
Rise & Fall of Strategic PlanningH.MintazbergPrentice Hall
Corporate StrategyM.E. PorterFree Press
Competitive Advantage: Creating & Sustaining Superior Performance M.E.PorterFree Press
Cases in Strategic ManagementBudhiraja & AthreyaTata McGraw Hill