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ACCT3583 MANAGEMENT ACCOUNTING 2 SESSION 2, 2014 SEMINAR TOPIC 1

THE EXTERNAL ENVIRONMENT: OPPORTUNITIES, THREATS, INDUSTRY COMPETITION AND COMPETITIVE ANALYSIS

Strategic decisions are complex in nature and made in situations of uncertainty. To cope with this complexity and uncertainty, it is wise to use frameworks of environmental analysis. These frameworks do not provide answers or categorical conclusions. Instead, they help us to think about the future and to challenge extant views that we may have about organisational functioning. Management Accountants have an important role to play in supporting the management tasks of gathering, analysing and interpreting this information. Week 1 is devoted to understanding the external environment of an organisation. It is important to have the ability to identify changes in the external environment because these changes may offer opportunities to be leveraged and threats to be overcome, signalling the possible need to change the ways in which an organisation’s resources are acquired and deployed. We will learn about the general, industry, and competitor environments of an organisation. The seminar will be ‘hands-on’. Over the next three weeks, we will apply frameworks of environmental analysis to Qantas Ltd. You will be required to conduct an in-depth analysis of Qantas before the seminars. Required Readings: Advanced Management Accounting, 2013 Edition, Chapter 1 Desired Learning Outcomes: As a result of satisfactorily completing this seminar, you will be able to: 1. 2. 3. 4. Appreciate generally what strategy is Undertake an analysis of the macro environment Undertake industry analysis using Porter’s Five Forces model Recognise opportunities and threats based on an analysis of an organisation’s external environment

(Please see the next page for seminar questions)

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Seminar Questions

Please attempt the following questions BEFORE class:

1) What is the meaning of these words: strategy, value, resources,...