The document outlines a module focused on strategy and management control systems, highlighting the importance of understanding strategy concepts and management controls within organizations. It details the processes involved in strategic management, including defining mission and vision, setting objectives, and evaluating performance. Additionally, it emphasizes the need for strategic objectives that improve competitive positioning and financial results, with examples from notable companies and a strategic roadmap for Sri Lanka's tourism industry.

1. Strategy and Management Control System
Overview
Priyanka Darshana
MBA (Aus), ACMA (UK), CGMA, B B Marketing (Kelaniya)
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2. Module aim
This module aims to impart knowledge,
competencies, and skills relating to the notion of
strategy and its connections with the practices of
management controls in the organization, with
reference to strategy concepts and emerging
management control system practices.

3. Intended learning outcome
By the end of this module, a student should be able to
do the following:
• 1. Understand why, how and what concepts of
strategy developed worldwide, making everybody
strategic conscious
• 2. Understand why, how and what concepts of
management control systems developed worldwide
making everybody control conscious
• 3. Articulate the relationship between strategy and
MCS, with an emphasis on the changing nature of
management control systems

4. Tasks Involved in Strategic Management & MCS
Defining business and stating a
Vision/mission
Setting measurable objectives
Crafting a strategy to achieve
objectives
Implementing a strategy
Evaluating performance of
the strategy, reviewing new
developments and taking
corrective action

5. Defining the mission/vision and objectives of the
organization
• Defining the mission and vision is the starting
point of the strategy development
• Mission statement address the purpose or
objective of existence.
• Vision is desired end state of the business

6. McDonald’s Mission Statement
“Our mission is to be our customers’ favorite place
and way to eat & drink. We’re dedicated to being a
great place for our people to work; to being a
strong, positive presence in your community; and
to delivering the quality, service, cleanliness and
value our customers have come to expect from the
Golden Arches – a symbol that’s trusted around the
world.”
Apple is committed to bringing the best
personal computing experience to students,
educators, creative professionals and
consumers around the world through its
innovative hardware, software and Internet
offerings."
Apple Mission Statement

7. BBC’s purpose statement
“To educate, inform and entertain”
Walt Disney’s Purpose Statement
“To make people happy”

8. Vision statement –Desired end state of the
business
Developing vision document
 Where you need to be and how you would like to see by 2020
 What do you need achieve/accomplished by next 10 years
“VISION 2020”
To become a most sought-after
private health care brand in Sri
Lanka

9. Vision, objectives and strategic
road map
VISION 2020
Objectives
Strategic road map
“What will be your
achievements’

10. Objectives
 Common shared objective (Goal congruence
not the sub optimization)
 Strategic Objectives and Financial objectives
 SMART objectives

11. Strategic Objectives
Focused on improving long term competitive business
position.
1. Wining a X % of Market share
2. Achieving lower COP than competitor
3. Having a wider products line than competitor
4. Increase the brand position in the market
5. Consistently introducing new or improved products
to market

12. Financial Objectives
• Outcome focused on improving financial
results of firm.
1. 10% growth in turn over (YOY)
2. Increasing PAT by 5% (YOY)
3. Increasing EPS by 10% (YOY)
4. Increasing Dividend yield and up ward trading the
share price

13. Tourism in Sri Lanka: Strategic road
map 2025
Vision 2025
It is hoped that Sri Lanka will be identified as a place
for memorable, authentic and diverse tourism
experiences by 2025.
Mission
Fundamentally, the ambitions of this Tourism of Sri
Lanka is are to increase revenue for the country,
support local communities, and increase tourism on a
sustainable platform.

14. Stakeholders involvement
 Tourist
 Communities
 Investors
 Workforce
 Government

15. Strategic Objectives
4 Years Strategic Plan to achieve the objectives

16. The essence of strategy of the organization
Perspective
strategy or
rational view An emergent view

17. Rational perspective

18. Management accounting and strategy
• Objectives
- Specific statement of what the organisation aims to
achieve, often quantified and relating to a specific
period of time (SMART)
• Strategies
- Strategy is the direction and scope of an
organisation over the long term which achieves
advantage for the organisation through its
configuration of resources within a changing
environment to fulfil stakeholder expectations.
G. Johnson and K. Scholes Exploring Corporate Strategy 6th edition

19. The essence of strategic management-a perspective view
• Major decisions
- What business will we operate in?
- What are our basic directions for the future
- What systems and structures should we have in place
to support our strategies?
• Corporate strategy
- Decisions about the types of businesses to operate in,
which businesses to acquire and divest, and how best
to structure and finance the organisation