The Application Of Strategic Management Accounting Research Of Lenovo Group LTD

IT industry of China has experienced nearly thirty years of development. Now the industry has been enlarging and beginning to form a complete industrial chain. With the enormous industry scale and favorable economic benefits, the industry makes a contribution to promote China's economic progress. Lenovo Group is a leader in the field of our country. With the integration of the world economy, Lenovo Group is facing two challenges: domestic and international market competitions, especially today, influenced by information and modern management; every decision of entrepreneurs involves the strategy. As a new mode of management, strategic management injected vitality to companies and brought the strategic management accounting. Strategic management accounting services to the strategy comparison, selection and strategic decision, it is the extension and infiltration of management accounting. It can provide internal and external market and competitor information. Through compare, select and analysis these information, it will help the management enact and implement strategic plan to achieve competitive advantage. It is an effective means of strategic decision-making. The formation and development of strategic management accounting is the inevitable outcome of modern economy and competition. It is the inevitable requirement of establishing and improving the modern cost management system. It leads the management accounting to a new stage of development. To have a benign circulation and development, it is necessary to carry out strategic management accounting.Nowadays, strategy management accounting is not popular in IT industry in China, so that this paper focuses on analysis the application of strategic management accounting in Lenovo Group to see how it achieves its profit goals by practicing the strategic management accounting. At last, we will compare Lenovo with its rival company like Apple Corp to find its advantages and limitations. We find that the enterprise's strategic goal has to match with its resources. It should be very careful when to launch a diversified strategy, every part of business should be interrelated and mutual support; managers should know the market very well and effectively guide the market. Formulation and implementation of strategies should be coordinated and it is necessary to have a full-time professional strategic planning department, introducing professional talent, improving the efficiency and effectiveness of information collection and monitoring. By facing the fierce competition of IT industry, Lenovo Group must understand their competitors very well to gain an initiative. Therefore, to take effective competition strategy, managers must put more time to know their competitors. The aims of the strategic management accounting is to collect and analysis the financial and non- financial information of competitors, then adjust the company strategy according to the actual situation of competitors in order to increase market share and improve the profitability.