Subject Code Subject Title Level Credits Mode of Study Pre-requisites Assessment Minimum Pass Grade
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AF5113 Accounting for Strategic Management 5 3 Seminars None Coursework Final Examination Coursework Final Examination 50% 50% (D) (D) 42 hours
ROLE AND PURPOSE Contemporary accountants are not only managing accounting processes in organizations. Accountants in business are now internal advisors to senior management in creating value for the various stakeholders of the organization. They are now closely involved frequently in the strategic management and accounting information system (AIS) activities. This course equips the business and accounting students with the fundamental knowledge in strategic management and AIS that are necessary for them to create value for any kinds of organization. LEARNING OUTCOMES Upon completion of the course, students should be able to: • • • • • • Understand the strategic management process within organizations operating in the global business environment, Apply the strategic management theories and concepts in real life situations and to translate strategies into action or operational terms, Appreciate the importance and roles of accounting information systems (AIS) in strategic management, Appraise the objectives and elements of internal control procedures in computer-based information systems, Understand the core business transactions and processes in the AIS applications, and Manage the process of information systems development and to identify the roles of accountants in the systems development life cycle.
INDICATIVE CONTENT The Nature of Strategic Management Concepts and evolution of strategic management. The importance and process of strategic management. Impact of technology on strategic decision making in organizations. Environmental Analysis and Diagnosis Scanning and analysis of the external environmental variables. Industry and competitive analysis. Forecasting techniques and synthesis of external strategic factors.
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Internal Scanning and Analysis Scanning and analysis of internal environmental variables. Resource-based approach to organizational analysis. Corporate value chain analysis. Strategic functional analysis. Strategic audit and synthesis of internal strategic factors. Strategy Formulation and Implementation Situational and SWOT analysis. Formulating organisational strategies using TOWS matrix. Corporate, business and functional strategies. Organizing and staffing for implementing strategies. The balanced scorecard (BSC) approach in measuring performance in strategy implementation. Conceptual Foundations of Accounting Information Systems (AIS) Overview of AIS and its role in supporting strategic management. Overview of the major transaction cycles and processing in organizations. Information systems documentation techniques. Database management concepts. Control of AIS Overview of control concepts. COSO’s internal control framework. The implications of Sarbanes-Oxley Act for strategic and information systems management. Threats and controls in the revenue and expenditure transactions cycles, and in the general ledger and reporting system activities. Core Business Processes in the AIS Business processes of the revenue cycle (sales order entry, shipping, billing and accounts receivable, and cash collections) and the expenditure cycle (ordering goods, receiving and storing goods, and paying for goods). Electronic Data Interchange (EDI). The general ledger and reporting system. Financial Reporting using the Extensible Business Reporting Language (XBRL). Systems Development Process Systems Development Life Cycle (SDLC). The role of accountants in the SDLC. Feasibility analysis. Behavioral aspects of systems change. Systems analysis, acquisition and evaluation. Systems design techniques and systems implementation and project management. TEACHING/LEARNING APPROACH Seminars will combine lectures and in-class activities to facilitate student learning, including case discussion, class presentation, exercise, quiz, etc. The lectures will focus on the key concepts, theories, and contemporary issues of strategic management (SM) and accounting information systems (AIS). The major objective of in-class activities is to apply the theories and concepts learned in class in solving practical problems in real case organizations. INDICATIVE READING Wheelen, T.L. and J.D. Hunger, Strategic Management and Business Policy, 10th Edition, Prentice Hall, 2006. Romney, M.B. and P.J. Steinbart, Accounting Information Systems, 10th Edition, Prentice Hall, 2006. Gelinas, U.J., S.G. Sutton and J.E. Hunton, Accounting Information Systems, 6th Edition, South-Western, Thomson Learning, 2005. AF5113.doc 2 (Updated in Jun 06)
David, F.R., Strategic Management: Concepts and Cases, 10th Edition, Prentice Hall, 2005. Kaplan, R.S. and D.P. Norton, The Strategy-Focused Organization, Harvard Business School Press, 2001. Selected articles from academic and professional journals. STAFF RESPONSIBLE Nancy Su
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