Strategic Business Analysis Topics

Subject: Strategic Business Analysis
Professor: Marilyn G. Loayon, CPA
Course Description:
Strategic Business Analysis is a useful framework that accounting students can apply in
examining real-world business issues and problems and developing possible alternatives
that can address these challenges.
This course integrates the management core courses together with the understanding and
application of real-world issues across different industries such as among others, the
dynamics of the internal and external environment affecting the business, industry, and
competition, the fast-paced advancement of technology and the importance and/or shrinking
concept of border, and changes of customer preferences. This enables students to analyze
business cases, issues, and challenges and recommend a strategic solution to address
them.
Learning Objectives:
1. Describe the basic conventions and doctrines of managerial and cost accounting and
other generally accepted principles which may be applied in the contemporary cost
management models.
2. Identify the cases, problems and issues involved to determine a viable solution.
3. Appreciate the value of learning, evaluation nd analysis.
4. Write and critically evaluate proposals and solutions.
5. Explain the management accountant’s role in the implementation of cost management
systems for product costing and decision-making purposes.
Topic 1: Corporate Objective, Strategy and Structure

This topic overviews the concepts and development of strategic planning in modern
business enterprises. The traditional areas of corporate strategy; such as strategic
objectives and strategic planning decision models are first introduced to the student. The
state of strategic thinking in the current environment is then considered, especially in relation
to multiple approaches to analysing corporate strategy.
Topic 2: Strategic Marketing Analysis and Budgeting
Here the marketing concept is introduced and the links between marketing and strategic
business analysis are illustrated. It is shown how concepts such as the product life cycle and
product portfolio matrix are linked to managerial accounting techniques such as budgeting
and life cycle costing to provide relevant information for strategic decision-making. A
comprehensive strategic segmental marketing budget is developed in this topic.
Topic 3: Financial Analysis in Product Portfolio Management
This topic looks at the interface between management accounting and marketing related
“product or services management” especially in competitive environments. The “product” is
the first “P” in the 4-Ps of marketing, the others being price, promotion and place distribution,
which will be discussed in detail in later topics. It is shown that as a product/service moves
through various stages of its life cycle, there are differing financial aspects that need to be
focused on for competitive positioning. It is demonstrated that the company’s management
accountant possesses the tools and techniques required to provide the product/service
managers with decision-orientated information, especially in financing technological
innovation in the digital age.
Topic 4: Pricing Methods and Strategies
Here the various aspects of pricing decisions are covered, especially in competitive
environments. Pricing methods and pricing strategies are specifically contrasted, and the
use of such techniques as CVP analysis and linear programming in the pricing area are
discussed. Risk averse pricing strategies and their limitations are also covered in this topic.
Topic 5: Financial Dimensions of Pricing in International Business Strategies
This topic extends the discussion of the previous topic on pricing, and considers pricing
within a competitive international market. It is shown that setting a selling price in a foreign
market has, in addition to strategic marketing considerations, some unique international
financial dimensions, especially due to the lengthening of the channels of distribution and the
impact of multiple currencies.
Topic 6: Promotion: Push Strategy and Human Resource Management
Here the principal ways of communicating with the market, referred to collectively as the
“promotional mix” are overviewed. The objective of this mix is to make a sale, either by
“pulling” customers towards the product (using advertising) or by “pushing” the product to the
customer (using personal selling). It is shown that the management accountant has a
significant role “push strategy”, especially in the human resource management areas of
controlling field sales operations and evaluating sales force performance.
Topic 7: Promotion: Pull Strategy and Integrated Marketing Communication
This topic continues with the discussion on promotion, and specifically looks at “pull strategy”
and integrated marketing communication (IMC) with its heavy reliance on advertising;
especially via digital marketing platforms. It is demonstrated that the management
accountant has a significant role in formulating advertising budgets, especially using specific
budget models, and in the difficult areas of controlling advertising outlays and evaluating
advertising effectiveness.
Topic 8: Supply Chain Management and the Place-Distribution Decision
This topic considers the last “P” of the 4-P’s of marketing; i.e. place (or physical distribution).
It is shown that the control of the supply-chain distribution function involves a “trade-off”
between maximising customer service and minimising distribution costs, and that the
management accountant has a significant role to play in achieving this balance. The tools
and techniques of distribution cost analysis and control that are used in providing customers
value and maintaining efficient cost management in the digital world are highlighted in this
topic.
Topic 9: Performance Valuation and Strategic Financial Structures
This topic introduces Business Performance Measures and provides a link as to how these
measures are interrelated with the capital structure of the firm. The impact of financial
structure on planning performance evaluation is considered, specifically the relative
measures (ratios) used in financial statement analysis. Investment and Financing issues are
separated; and capital structure and its role in obtaining an appropriate discount rate for
capital projects is particularly considered. The topic also covers the more recent approaches
to project and corporate funding such as venture capital and crowdfunding.
Topic 10: Strategic Value Analysis
This topic overview the different approaches to ‘value investing’; and introduces the concept
of Strategic Value Analysis. The topic compares this concept to the more traditional concept
of net present value; and demonstrates the impact of ‘free-cash flows’ on operational value,
business value, and shareholder value. It is demonstrated that the concepts of ‘value’ and
‘strategic value’ can be quantified for planning purposes, and in valuing companies.
Topic 11: Risk Management – Corporate Radar and Early Warning Systems
Here the concept of risk; and the approaches to risk management using short-term (weekly)
and long-term (annual) corporate radar systems are considered, in order to determine the
health of a business organisation. Popular bankruptcy prediction models (such as Z-scores)
and their reliability and relevance in the 2000s are specifically considered.
Topic 12: Strategic Scorecards
This topic focuses on corporate success, and the role of non-financial indicators in
measuring and controlling this success. The importance of monitoring both the internal and
external environment is highlighted, especially in terms of a firm’s ‘critical success factors’.
The strategic consequences of having intangible assets such as Brands and Human Capital
on strategic scorecards is also considered. Finally, a strategic scorecard that recognises the
seven underlying principles of ‘sustainable value creation’ in the design and marketing of
products and services is highlighted.
Computation of Grades:
Attendance and Recitation - 50%

Quizzes, seatwork, assignments – 20%
Midterm and final examination – 30%

Strategic Business Analysis Topics

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Subject: Strategic Business Analysis

Professor: Marilyn G. Loayon, CPA

Topic 1: Corporate Objective, Strategy and Structure

Topic 3: Financial Analysis in Product Portfolio Management

Topic 4: Pricing Methods and Strategies

Topic 5: Financial Dimensions of Pricing in International Business Strategies

Topic 6: Promotion: Push Strategy and Human Resource Management

Topic 7: Promotion: Pull Strategy and Integrated Marketing Communication

Topic 8: Supply Chain Management and the Place-Distribution Decision

Topic 9: Performance Valuation and Strategic Financial Structures

Topic 10: Strategic Value Analysis

Topic 12: Strategic Scorecards

Attendance and Recitation - 50%

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