1. Overview Strategy and Management Control System Priyanka Darshana
MBA (Aus), ACMA (UK), CGMA, B B Marketing (Kelaniya) 1

2. Module aim
This module aims to impart knowledge, competencies, and skills relating to the notion of strategy and its connections with the practices of management controls in the organization, with reference to strategy concepts and emerging management control system practices.

3. Intended learning outcome
By the end of this module, a student should be able to do the following:
1. Understand why, how and what concepts of strategy developed worldwide, making everybody strategic conscious
2. Understand why, how and what concepts of management control systems developed worldwide making everybody control conscious
3. Articulate the relationship between strategy and MCS, with an emphasis on the changing nature of management control systems

4. Tasks Involved in Strategic Management & MCS
Defining business and stating a Vision/mission
Setting measurable objectives
Crafting a strategy to achieve objectives
Implementing a strategy
Evaluating performance of the strategy, reviewing new developments and taking corrective action
Kelley Summer GM 105 Strategic Management

5. Defining the mission/vision and objectives of the organization
Defining the mission and vision is the starting point of the strategy development
Mission statement address the purpose or objective of existence.
Vision is desired end state of the business

6. McDonald’s Mission Statement
“Our mission is to be our customers’ favorite place and way to eat & drink. We’re dedicated to being a great place for our people to work; to being a strong, positive presence in your community; and to delivering the quality, service, cleanliness and value our customers have come to expect from the Golden Arches – a symbol that’s trusted around the world.”
Apple Mission Statement
Apple is committed to bringing the best personal computing experience to students, educators, creative professionals and consumers around the world through its innovative hardware, software and Internet offerings."

7. BBC’s purpose statement
“To educate, inform and entertain”
Walt Disney’s Purpose Statement
“To make people happy”

8. Vision statement –Desired end state of the business
Developing vision document
Where you need to be and how you would like to see by 2020
What do you need achieve/accomplished by next 10 years
“VISION 2020”
To become a most sought-after private health care brand in Sri Lanka

9. Vision, objectives and strategic road map
“What will be your achievements’

10. Objectives
Common shared objective (Goal congruence not the sub optimization)
Strategic Objectives and Financial objectives
SMART objectives

11. Strategic Objectives
Focused on improving long term competitive business position.
Wining a X % of Market share
Achieving lower COP than competitor
Having a wider products line than competitor
Increase the brand position in the market
Consistently introducing new or improved products to market

12. Financial Objectives
Outcome focused on improving financial results of firm.
10% growth in turn over (YOY)
Increasing PAT by 5% (YOY)
Increasing EPS by 10% (YOY)
Increasing Dividend yield and up ward trading the share price

13. Tourism in Sri Lanka: Strategic road map 2025
Vision 2025
It is hoped that Sri Lanka will be identified as a place
for memorable, authentic and diverse tourism
experiences by 2025.
Mission
Fundamentally, the ambitions of this TSP are to increase
revenue for the country, support local communities, and
increase tourism on a sustainable platform.

14. Stakeholders involvement
Tourist
Communities
Investors
Workforce
Government

15. 4 Years Strategic Plan to achieve the objectives
Strategic Objectives
4 Years Strategic Plan to achieve the objectives

16. Perspective strategy or rational view
The essence of strategy of the organization
Perspective strategy or rational view
An emergent view

17. Rational perspective

18. Management accounting and strategy
• Objectives
- Specific statement of what the organisation aims to
achieve, often quantified and relating to a specific period of time (SMART)
• Strategies
Strategy is the direction and scope of an organisation over the long term which achieves advantage for the organisation through its configuration of resources within a changing environment to fulfil stakeholder expectations.
G. Johnson and K. Scholes Exploring Corporate Strategy 6th edition -

19. • Major decisions • Corporate strategy
The essence of strategic management-a perspective view
• Major decisions
- What business will we operate in?
- What are our basic directions for the future
- What systems and structures should we have in place
to support our strategies?
• Corporate strategy
- Decisions about the types of businesses to operate in, which businesses to acquire and divest, and how best to structure and finance the organisation