Analysis Of The Strategic Management Accounting †Free Samples

Question: Discuss about the Strategic Management Accounting. Answer: Introduction The present report aims to present an analysis of the strategic management functions of the Regis Healthcare Limited. The Regis Healthcare Limited is recognized to be the largest ASX listed Residential Aged Care (RACs) having a market share of about 2.5%. The company aims to become an innovative, dynamic and creative industry leader through providing high quality aged services through effective management (Regis Healthcare Limited, 2017). In this context, this report analyses the strategic management of the Regis Healthcare Limited in detail on the perspective of a Strategic Management Accountants (SMA). Value Chain of Regis Healthcare Limited through the Use Of Strategic Management Tools Regis Healthcare Limited operates in healthcare industry and as such the term value for the company indicates its speed, quality, cost and availability of healthcare services. The value chain of the company can be enhanced through the application of strategic management tools of value chain analysis. The value chain analysis (VCA) refers to the method adopted by a firm to identify its primary and secondary activities that helps in developing the valuable products and services for the customers. The goal of this strategic management tool is to segregate the most valuable activities within the firm such as operations, logistics, marketing form the support activities that are, infrastructure, technology and others. The value chain of the healthcare company will consist of activities similar to that of other industries such as manufacturers, wholesalers, distributors, providers, professionals (nurses, midwives) and payers (heath consumers). These all can be stated to be the primary activ ities of the healthcare company that plays a vital role for it to achieve competitive advantage in the marketplace (Ginter, 2013). The value chain of Regis Healthcare Limited can be depicted as follows: Examination and Implementation of techniques for Developing, Implementing and Monitoring Strategies The techniques for developing, implementing and monitoring healthcare strategies can be described as follows: Developing Strategies: The techniques for developing healthcare strategies are examining the medical history of patients that helps in identification of the healthcare services to be provided to the patients. This is followed by carrying out the specific tests for proper identification of the healthcare problem and then developing a healthcare strategy for the treatment of a specific problem. Implementation: The implementation can be done by performing the treatment procedures for the patients such as counselling of patients or providing them specific type of medical help as required by the patients. Monitoring: The monitoring strategies include reviewing the condition of the patients on a continuous basis in order to examine the impact of treatment procedures on the patients. This helps in modifying the treatment procedures as per the patients condition (Swayne et al., 2012). Strategic management cycle and the Leadership Role of Professional Accountants in Strategic Management The strategic management cycle of the Regis Healthcare will consist of the following steps: Setting of Goals: This is the most essential step as it requires the identification of adequate healthcare goals that is to be achieved by the company. This can be improving access to care, reducing healthcare cost pr providing speedy care services. Developing Strategy for Enhancing Value: This includes developing specific strategies for achieving the goal determined for adding value to the healthcare services such as measuring cost and outcomes of each patient, adequate structuring by developing integrated practice units, expanding the geographical reach of the company or using high technology medical equipments. Execution: This is the last step that involves developing specific plans for implementing the strategies developed (Ginter, 2013). The role of healthcare professional accountants is very important in the strategic planning of the healthcare company such as Regis Healthcare Limited. The professional accountants are responsible for cost management through developing healthcare budgets that help in maintaining an adequate balance between the cost and expenditure. The development of financial budgets helps in eliminating the unnecessary costs those significantly increases the costs of the healthcare facilities (Swayne et al., 2012). Role of organization and Industry Value Chain Analysis The role of healthcare firms such as Regis Healthcare Limited is very important in improving the health condition of the aged population of the Australia. These healthcare firms help in promoting the welfare of the senior citizens of the country through increasing their access to healthcare services at reduced cost. The value chain analysis of the healthcare industry consists of the primary and secondary activities. The primary activities consist of the most important functions that help it to attain a competitive advantage such as manufacturers, wholesalers, distributors, providers, professionals (nurses, midwives) and payers (heath consumers). The secondary activities consist of the government legislations and technologies that impact the carrying out of primary activities. The company through identifying the primary activities can develop effective strategies to reduce the cost of healthcare facilities that enables it to achieve competitive advantages. The reduction in the cost of healthcare facilities is important for the companies operating in Australian healthcare sectors as this is the most serious issue faced by the industry in the present context. The secondary activities of the companys value chain can consist of government policies, technology and some other industries such as insurance companies. These all also plays a significant role in maintaining the quality and cost of healthcare services through interacting with the primary activities (Huda, 2016). Characteristics of effective strategic and corporate social responsibility related performance measurement and control systems The strategic performance of the company can be measured and controlled through the implementation of the Strategic Management System (SMS). The system will help in aligning the goals and objectives of the company as per the resources available. The strategic measurement system is a measurement-oriented approach that helps in developing specific annual improvement targets for the company. The corporate social responsibility systems are necessary to be implemented in the healthcare companies for ensuring the welfare of the patients. The CSR systems would helps in promoting the transparency in the heath care organizations for achieving the trust of the patients. The CSR system that can be implemented in the healthcare organizations are waste management system and effective governance system. The healthcare companies through reducing the waste elimination can promote the welfare of the existing societies as they generate waste materials on large amount. Also, the governance system will enable development of standard guidelines and procedures for the healthcare professionals to carry out their job roles for ensuring the quality services to be provided to the patients (Lachman, 2005). Strategic Management Accounting Techniques The healthcare professionals need to develop a proper budget for estimating the costs and expenses related to the healthcare projects. The professional accountants have an important role of developing financial budgets that helps in identification of the costs and expenses related with a project. The development of the budgets helps in section of the most appropriative cost management strategy for reducing the costs of the healthcare services of the company. The rising cost of the healthcare service is the most important issue faced by the healthcare industry of the Australia. Therefore, it is most important for the professional accounts to implement the cost management strategies through developing the financial budgets. It will help in reducing the operational cost through eliminating the insignificant business operations and therefore improving the profitability of the healthcare companies. Therefore, it can be said that cost management is the most importantstrategic management ac counting technique required for selection, planning, implementation, control and monitoring of projects (Hankins and Baker, 2004). References Ginter, P. 2013. The Strategic Management of Health Care Organizations. John Wiley Sons. Hankins, R. and Baker, J. 2004. ManagementAccounting for Health Care Organizations: Tools and Techniques for Decision Support. Jones Bartlett Learning. Huda, F. 2016. The Impact of Strategic Management on the Performance of Health Care Organizations (A Study of Three Selected Tertiary Health Care Center of Karachi, Pakistan). Arabian J Bus Manag Review. Lachman, M. 2005. Strategic managementaccounting practices in hospitals: Empirical evidence on their dissemination under competitive market environments. Journal ofAccounting Organizational Change. Regis Healthcare Limited. 2017. What Investors Should Know About Regis Healthcare Limiteds (ASX:REG) Financial Strength? [Online]. Available at: https://simplywall.st/news/2017/01/26/what-investors-should-know-about-regis-healthcare-limiteds-asxreg-financial-strength/ [Accessed on: 13 October 2017]. Swayne, L. et al. 2012. Strategic Management of Health Care Organizations. John Wiley Sons.