1 28 1. RECOMMENDED READING. Essential THE INSTITUTE OF BANKERS. Grant (Latest Edition) Contemporary Strategy Analysis, Blackwell Business Stoner and Freeman (Latest Edition) - Management, Prentice Hall OF ZIMBABWE. Supplementary Thompson and Strickland (Latest Edition) Strategy Management, BPI/IR WIN. Porter (Latest Edition) - Competitive Strategy, New York Free Press Porter (Latest Edition) - Competitive Advantage, New York Free Press Buzell and Gale BT (Latest Edition) - Principles Linking Strategy to Performance (PIMS), New York Free PI1ess Harvard Business Review Revised 20th August 200I. SYLLABUS . DIPLOMA LEVEL . 2 27. DIPLOMA LEVEL 12. Managing Quality - The concept of quality - The concept of value MANAGEMENT ACCOUNTING - Porter's generic value chain - Quality in theory and practice The Nature of the Subject - British Standard 5750 (BS 5750). - Zimbabwe Standard and International Standard Organization (ISO).
2 - The quality management cycle This SYLLABUS has been designed to enable candidates to show that they have a - Case Study good understanding of theory of costing and management accounting theory and are able to evaluate management performance and provide decision making infor- 13. The Role of the Marketing Function in Strategic Management mation from given scenarios. - Definition of Marketing - Marketing at the corporate LEVEL Aims and Objectives of the Examination - Comparing corporate and marketing planning To develop students' analytical and critical abilities through a study costing and - Marketing at the strategic business unit LEVEL management accounting theory and to further develop the ability to devise indica- - Strategic marketing planning and implementation tors of performance, to measure, to evaluate management performance and to - Case study provide financial and non financial information for planning and control and deci- 14.
3 The Role of Personnel in Strategic Management sion making. - A Stakeholder view of Personnel - Stakeholder expectations of Personnel The Examination - The Personnel role in the Strategic Management Cycle The examination will be of three hours duration, plus ten minutes reading time - Personnel and the implementation of strategy during which period candidates may write on the Question Paper but not in their - Internal factors influencing strategy implementation answer Book. - Personnel aspects of strategy implementation - Personnel management and organizational change SYLLABUS - Personnel implications of strategic change Candidates should note that it is not the intention to examine subject areas shown - Resistance to change below individually. Rather, answers will provide the opportunity for candidates to - The four change methods demonstrate their question. The examination will cover the following:- - Case Study 15.
4 Measuring Strategic Performance 1. INTRODUCTION - Strategic performance - key measures (a) Distinction between cost and management accounting - Strategic business plan - measuring performance -a cost walks on two legs - Stakeholder perspectives on effective performance -what is a cost ? - Efficiency of performance -why? - Profit Impact Market Strategy (PIMS) programme - Case Study -costing terminology cost centre, cost unit, cost classification, cost 16. Acting Strategically -allocation, cost apportionment, cost absorption, cost estimate cost forecast Identify standard barriers to strategy application Strategic Change plan for the strategy, change, validate change (b) Element of cost Align strategy and human capital enhance event -direct and indirect expenditure Innovation pool, - "Blue Sky" and strategy groups -direct and indirect material Check if your culture is innovative or change capable. -direct and indirect labor Management of strategic information -direct and indirect expenses 26 3.
5 Where strategy and tactics meet the major concerns -principles of cost accounting Support funding and facilities -merits of a good costing system Implementing decisions and reviewing results Implementing strategy a working model 8. Business Plan - The strategic business plan its outline c) Costing Systems - Implementing strategy key forces -historic costing system - Budgets in business plans -standard costing system - The Basic Budget cycle -absorption costing system - Cash flow forecasts -marginal costing system - Outline of a cash flow budget - Case Study (d) cost Methods -factory job costing 9. The International Dimensions of Strategy -contract costing - International dimensions of market-places -batch costing - International influences on companies -process costing - International competition - International business and the impact to technology - The single European Market 2. MATERIAL PURCHASING AND PROCUREMENT.
6 - Japanese management practices (a) Importance of purchasing - Multinational Enterprises -material control - Entry strategies in international markets -initiating a purchase - Case Study -purchase requisition -purchase order 10. Organisational Culture and Strategic Management -receipt of material - Concept of corporate culture and its significance -goods received note - Definition of culture and organisational culture -inspection note - Implications of organisational culture to Strategic Management - Explicit aspects of culture -material return to supplier - Importance of unity of internal culture - Case Study (b) Storekeeping -objective of good storekeeping 11. Managing Change and Innovation -need for material costing - The effect of environment on change -classification of material - Factors in the external environment -issue of material - Factors in the internal environment -return of materials to stores - Organisational change - Managing Strategic Change c) Material Control - Resistance to change Stock control - Force-field theory -maximum stock LEVEL - Definition of change and innovation compared - minimum stock LEVEL - Management of change and innovation compared -re-order LEVEL - Case Study -economic order quantity -overstocking -understocking 4 25.
7 4. Competitive Advantage -perpetual inventory - The Nature of competition in an Industry -bin card - Porter's five competitive Forces model -continuous stock-take - Porter' Seven major barriers to market entrys -annual stocktake - Analysing the competition in the Industry -stockholding costs - Competitive position - Porter' generic value chains - Profiling known competitors - The unknown competitors d) Material cost - Case Study -distinction between lower of cost or net realisable value -principles of pricing stores issue 5. Forecasting the Future -first in first out (FIFO) method - The focus of forecasting -last in first out (LIFO) method - Strategic forecasting techniques The examination will cover average -simple the following topics/areas which constitute the entire SYLLABUS of Strategic method - Gap Analysis Management: -weighted averaged method - Quantitative Techniques which include Budget Forecasts, Simple projections, Key Ratio -replacement price method Analysis, Profit Impact On Market Strategy (PIMS) analysis, Computer Modelling includin econometrics.
8 -standard cost method - Qualitative Techniques which include BPEST analysis, SWOT analysis, Scenario developm Delphi technique and Brainstorming. 3. WAGES REMUNERATION/INCENTIVE BONUS SCHEMES. - Case Study (a) Principles of remuneration (b) Types of remuneration systems viz 6. Formulating a Strategy -time rates - Strategic choices- the key alternatives -piece rates A Basic Model of strategic choices -premium bonus schemes c) Organization of wages department Strategies in the four main functional areas of a business enterprise - product, market, financial -wages records and general strategies -preparation of wages Strategic choice in practice -payment of wages Theoretical models of Strategy: -unclaimed wages Ansoff' Product Market Strategies, Porter' Generic Strategies, the Boston Consultingss Group' Portfolio Frameworks 4. OVERHEADS The experience curve (a) Concept of overhead absorption Further theoretical aspects of strategy (b) Basic of absorption Strategic levels - Corporate, Business and Functional, their priorities and components.
9 -material cost percentage rate -wages cost percentage rate -prime cost percentage rate Crafting a strategy -labour hour rate -machine hour rate Case Study -unit cost rate 7. Implementing Strategy c) Services Department cost Centre Costs - Devising a Framework for implementing strategy -reciprocal services 24 5. THE EXAMINATIONS - cost allocation The Examination will be of three hours duration plus ten minutes reading time during which period candidates may study the Question Paper thoroughly before starting writing anything in their Answer Books. The examinations will focus mainly on Case d) cost Apportionment Method Studies. -direct method -repeated distribution method THE SYLLABUS -simultaneous equation method Candidates should take note of the fact that the examiner will expect them to adopt a -step-down method holistic approach to the subject of Strategic Management. This means that the candi- dates should look at the individual topics/areas of the subject and establish relation- ships between them.
10 Candidates should also link what they know about the subject with reality, that is, relating the subject to the real life situations in general or the Banking Industry in particular. e) Over and Under-Recovery of Overhead The examination will cover the following topics/areas which constitute the entire SYLLABUS of Strategic -over-recovery Management: -under-recovery -disposing over and under-recovery of overheads Strategic Management Concept - Definition of a Strategy, role and development of Strategy f) cost Control Accounts - Types of strategy -ledger control accounts - Basic strategic management cycle -costing profit - Relationship between strategy and the operations of the organisation - Strategic issues g) Integral/interlocking Accounts - Effects of Internal and External environments on Strategic Management -financial accounting profit - Stakeholders in Strategic Management -items giving rise to difference between costing profit and fi- 2.