Methodical approach to entity strategy evaluation on the basis of accounting and analytical strategic management accounting data

Abstract

Introduction. The defining feature of strategically focused information and analytical system is the use of information that is formed. Formation and development of strategic management accounting can contribute to the layout and presentation of information while making strategic management decisions.

Goal. The purpose of the research is to study and develop methodical approach to the evaluation of the strategy of undertakings on the basis of accounting and analytical data of the strategic management accounting.

Method (Methodology). The basis of the methodology is a systematic approach. With its help it has been carried out a combination of complex economic phenomena in a single process. The structural approach has been used to develop a consistent algorithm acts as a basis for methodical approach in order to the assess the strategy. Concept of balance has been used while making the decomposition of indicators to assess external and internal environment entities. Modification of SPAC-analysis has been implemented to determine the current strategy.

Results. The methodical approach to the evaluation of the strategy is based on the determination of the ratio between internal capabilities and external strategic situation. As a result we have singled out two areas of measurement: internal strategic position that combines analysis of the strengths and weaknesses of the entity; foreign strategic situation, which combines analysis of opportunities and threats. The algorithm acts as a basis for methodical approach and provides three phases: preparatory, analytical and assessment. Evaluation of internal strategic position and external strategic situation has been formalized into in the system of balanced indexes, which have been grouped by prospects. In order to take into account the level of the uncertainty of the external environment the assessment of the statistical parameters has been conducted by the method of confidence intervals. Modification of SPACE-matrix has provided an opportunity to illustrate the results of evaluation of strategies with the ability to conduct a comparative analysis.

Results. The technique can be adapted for the economic entities of different legal forms and adjusted to the needs of a particular industry.