Business Synoptic FA Essay Example | Topics and Well Written Essays - 4000 words

Business Synoptic FA - Essay Example On the other hand, accounting for decision making is that aspect of a company in which a business firm takes strategic perspectives and decides on issues related to its successful operation. This following model is developed for determining a relationship between strategic management and accounting for decision making with the perspective of the case study of Nestle. The aspects based on the linkage between two modules are as follows: For understanding the model precisely, it is essential to review certain aspects of strategic management. In this paragraph the concepts of strategic management will be discussed. There are certain key activities in a process of strategic management that has been found to be relevant in the perspective of Nestle’s actions towards strategy formulation. The first activity deals with a situation analysis of organisational environment that includes operational activities of the company, inclusive of internal resources along with stakeholders. The sec ond important activity deals with establishment of strategic direction. The strategic direction is reflected in vision and mission statements of the organisation. Based on the analysis of situation and review of the organisation’s vision and mission, certain specific strategies are formulated. The strategies are formulated with respect to ultimate objectives of the organisation. ... Another module, accounting for decision making is also needs to be taken up for understanding the model. In this paragraph, the concept of accounting for decision making relevant to the development of the model will be discussed. The foremost activity that Nestle has taken prior to deciding on the entry strategy in emerging markets is related to clarification of decision problem. The decision problem is highly related to strategic alternatives selected for strategic management. The selection of alternatives is based on decision problem and is directly related to the perspectives of strategic management. Development of decision model is undertaken with the objective of selecting one best alternative. The decision model is crucial for collection of data and by analysing the collected data one best alternative is chosen (Accounting Education, 2011). The relationship between the two modules, strategic management and accounting for decision making will be presented through discussion in t his paragraph. In developing the relationship between concepts of two modules with respect to decision making in Nestle case study, certain important aspects of the case have to be taken into account. Nestle has to build up a comprehensive decision model that would satisfy its objectives. In the above model, relationship between concepts of two modules has been presented, which is relevant for the successful functioning of the organisation. Steps followed in the strategic management are crucially related towards development of decision model. On the basis of the model developed, ultimate single alternative can be chosen. The relationship between