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Additional resources for ACCA P5 Advanced Performance Management: Study Text
Sample text
Com 1 Introduction to planning, control and decision making FAST FORWARD Strategic planning is the process of deciding on objectives of the organisation, on changes in these objectives, on the resources to attain these objectives, and on the policies that are to govern the acquisition, use and disposal of these resources. co m Management control is the process by which managers ensure that resources are obtained and used effectively and efficiently in the accomplishment of the organisation's objectives.
It will help you see how these fit into the overall framework of strategic planning and performance analysis. We have noted chapter numbers in the tables and on the diagram so you are clear where there are syllabus links. Strategic/corporate/long-range planning involves formulating, evaluating and selecting strategies to enable the preparation of a long-term plan of action to attain objectives. Corporate objectives concern the business as a whole, and focus on the desired performance and results that the business intends to achieve.
Fre Key term For example, knowledge of competitors' costs, as well as a firm's own costs, could help inform strategic choices: a firm would be unwise to pursue a cost leadership strategy without first analysing its costs in relation to the cost structures of other firms in the industry. (b) Customers determine if a firm has competitive advantage. 2 Future orientation A criticism of traditional management accounts is that they are backward looking. (a) (b) Decision making is a forward- and outward-looking process.