The Times 100
Business Case Studies
CIMA
Improving strategic decision making
Introduction to CIMA
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The leading professional body for
management accountancy
Over 170,000 members/students operating in
more than 160 countries
CIMA qualified management
accountants active across
many sectors of industry
Management accountants
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Have management as well as financial skills
May take management or leadership roles in
organisations
Analyse and interpret
financial and market data
Assess effects on the business
and propose solutions
Contribute to overall business performance
The decision making process
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Decision making follows a systematic
approach
Business decisions must
relate to aims and objectives
Strategies need to take
account of external influences
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Social, political, economic or technological
Levels of decision making
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Strategic
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Tactical
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Long term
Generally taken at senior levels
Shape the direction of the business
Usually taken by middle management
Help to implement the strategy
Operational
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Related to the day-to-day running of the business
Often routine, taken at all levels
Decision making through
analysing accounts
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Income statement
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Aggregated record of all sales and expenses over
a given period
Dynamic – describes the flow of
money through the business
Balance sheet
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A snapshot of the business at a point in time
Balances assets (long term resources) against
capital employed (long term finance)
Key performance indicators
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KPIs are important in
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Monitoring progress towards targets
Managing efficiency and effectiveness
Key examples include:
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Financial, e.g. sales, revenue
Customers, e.g. spending levels or total numbers
Operational, e.g. productivity outputs
People, e.g. levels of absenteeism
Environmental, e.g. reducing energy consumption