Effective Planning Tools For Managing Accounts Harvard Case Solution & Analysis

Part A

Planning Tools in Management Accounting:

Planning tools are a set of techniques and tools used to help in managing different types of business operations and plans effectively. The planning tools are highly intended to guide the company in making a most effective plan, analyze and go through the process of decision making. All the tools have been used by different company for diverse reasons and purposes, thus they have assembled as a bundle of methods so that efficiencies could be achieved in management and planning of operations.

  1. Strategic planning tool:

Strategic Planning Tool is the tool which relates to creation of an effective plan in relation to the change of events or occurrences which need an organization’s focus for sustainability. Examples of events can be Competitor Stance, New Product, New Market, Specific Events, etc. This tool is useful in attaining synergies, it helps in facilitating the collaboration between managers.This tool is used in management accounting which aids in providing the strategic reasons for the development of the company.It. is used in identifying the strategic intent and the goals and an objective is created which might envision the company’s future. Since the ultimate purpose of managementaccountingis to take effective and vital decisions for the betterment and bright future of the company, it might be one of the most useful and valuable tools used in management accounting. It helps in making decisions through informing the company of plans, strategic changes and implications of the current situation along with what are the expected changes to be done in the forthcoming years. Furthermore, new products, strategies, services, objectives and goals tend to require allocation of resources which can be done when they are aligned with the strategic objectives.Thus, it also helps in achieving sustainable competitive advantage.

On the second note, the human resource planning and marketing is costly and there is a need for putting additional efforts in hiring strategic planners and managers in order to properly analyze the internal and external environment(Jurevičienė, 2013).

Effective Planning Tools For Managing Accounts Harvard Case Solution & Analysis

  1. SWOT Analysis:

A SWOT analysis is the basic and fundamental tool used in management accounting because it helps in identifying the key issues which have a greater impact on the sustainability of the business. Since the objective of management accounting is to provide the necessary information used in planning and taking decisions for the company, the SWOT analysis helps in finding the solution for the issues.

There is a no cost required for this tool because the management of the company can better evaluate this matrix. It helps in addressing the issues in a shorter time span. It helps in understanding the business in a better way, following this practice helps in addressing the weaknesses which are hindering the company in gaining market share. Through this, the threats posed by competitors can be deterred and market opportunities can be capitalized or exploited. Not only this, the company could better take advantage of itsstrong points. The company could develop goals and objectives of business and formulate strategies for attaining those objectives.

Pursuing with this tool might require in-depth planning and research in order to take decisions, however, it is somehow difficult to address the two-sided effects. It does not prioritize problems or issues, it does not provide alternate or best possible solution (Nordmeyer, 2018)................

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