The Application Of Strategic Management Accounting In Enterprise Group

Enterprise group is a particular economic organization. Compared with common enterprises, it is larger in scale, and abundant in resources. Enterprise group often engages in vary kinds of industries, and has deeper engagement in each industry. Great competition pressure makes the market full of threats and opptunities. In order to conquer the uncertainty of the market and to develop steadily, the adoption of strategic management in enterprise group is unavoidable. Strategic management surveys internal and external environment, and based on which they constitute their long-term strategy. Strategic management in enterprise group harmonizes all strategies of its member companies. As a result, strategic management in enterprise group not only has the trails of common strategic management, but also embodies the characteristics of enterprise group.Strategic management can be decomposed into four phases: strategic environment analysis, strategic formulation, strategic implementation and strategic performance evaluation. It is necessary for companies who adopt strategic management to execute strategic management accounting. Strategic management accounting must incarnate all characteristics of strategic management, and create different methods for each phase of strategic management. In different layers of strategic management, these methods are also different. Competitive force analysis is an important method to perform environment analysis. SWOT analysis and Value-chain analysis are helpful to strategic formulation. The most important problem of strategic implementation is cost management, and target costing, ABC costing and TQC are invented for this phase. Performance evaluation is important. There we introduce the usage of balanced score-card. All these strategic management methods must combine with characteristics of enterprise group, so that they can be brought in effect efficiently.In the last chapter, we take the CIMC for example, investigated how strategic management methods are adopted in this enterprise group, and how these methods assists their strategy.