The effect of management accounting in supporting the strategic management process in the motor industry.
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Date
2017
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Abstract
Many organisations, locally and internationally, have placed huge importance on involving accountants in business related decision. In South Africa, particularly organisations in the motor industry, have not recognised the significance of using management accounting to support the strategic management process. Many of these organisations have not allowed accountants to be involved in the strategic issues of the business. This may lead to poor financial performances due to miscalculated business decisions being made without using well analysed financial information collected and analysed by accountants. The aim of this study was to determine the impact of management accounting on strategic decisions.The study was qualitative and data was collected by means of interviews. An interview schedule was the research tool of choice used to collect data. Participants were invited using a non probability method of purposive sampling. Participants were selected from dealership around Pinetown and Durban representing the general motors franchises as well as Audi, Toyota and Mazda. The findings of this study are based on 14 interviews held with accountants and other finance professionals working in the motor industry. The findings of the study indicated that accountants and other finance personnel’s efforts add value to the strategic management process of the business. The techniques used to aide strategic management are not sophisticated and vary from one organisation another. The involvement of accountants in the strategic process was influenced by several factors such as a range of qualities possessed by the accountant, organisational factors, as well as systematic factors that allow the accountants to perform their roles. The study further looked at the terms being used by finance professionals in the motor industry as they carry out their roles. Business issues emerged as a term that was used and best described how accountants got involved in strategic management process. Based on the findings of the study, it was recommended that dealership accountants make an effort to engage with other managers on issues of strategy. It was also recommended that accountants would need to possess good interpersonal skills, as they are as important as technical skills, in order for them to be able to contribute significantly to the organisation’s success.
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Masters Degree. University of KwaZulu-Natal, Westville.