Developing ethical business strategies
A CIMA case study

Page 1: Introduction

CIMA, the Chartered Institute of Management Accountants, is the world's largest professional body of management accountants, with over 203,000 students and members in 173 countries. CIMA offers a professional accounting qualification with an emphasis on management. This makes it suitable for people with the ambition to become accountants or managers in business. Many CIMA members study for the...
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Page 2: Business strategy

A mission statement and business aims identify the core purpose of the business and the goals that it wants to achieve. Business strategy refers to the set of plans that a business adopts in order to achieve its aims. A mission statement outlines the core values of a business and can form the backbone for all strategic decisions. CIMA’s mission is ‘Helping people and businesses to...
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Page 3: Strategic planning

Planning is a vital tool to aid strategic decision making. Good planning enables businesses to put together more accurate forecasts for the future direction of the business. Management accountants play a key role here by identifying and assessing risks. In particular, they look at the probability of other events taking place that could help or hinder the business. Risks can be identified within...
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Page 4: Adding value

In the current low growth economic climate, many organisations are finding that growth and profitability will not be achieved through sales growth in their traditional markets. Some are looking to new markets but most are looking to increase the efficiency of their operations and to focus on higher value activities, products, customers and delivery channels. A key role for management accountants...
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Page 5: Evaluating business strategies

Whatever business strategy is chosen, its progress will need to be checked and its outcome and effect evaluated. This is often done against KPIs (key performance indicators). These are set as targets by organisations so that they can not only monitor progress, but tie progress (or lack of it) to specific areas or processes. The distance between actual achievements and KPIs will show managers...
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Page 6: Conclusion

Management accountants have a vital role to play in planning and setting business strategies. They use both financial and nonfinancial data to ensure strategic decisions are made that add value and minimise potential risks to the business. This case study shows the varied roles that CIMA qualified management accountants hold within different sectors, demonstrating how they use their financial...
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