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Managerial Accounting and The Business Environment: Mcgraw-Hill/Irwin
Managerial Accounting and The Business Environment: Mcgraw-Hill/Irwin
Business Environment
Chapter 1
McGraw-Hill/Irwin Copyright 2010 by The McGraw-Hill Companies, Inc. All rights reserved.
Customer Value Propositions
Customer
Understand and respond to
Intimacy
individual customer needs.
Strategy
Product
Leadership Offer higher quality products.
Strategy
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Organizational Structure
Decentralization is the delegation of decision-
making authority throughout an organization.
President
Treasurer Controller
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Process Management
A business
process is a series of
steps that are followed in order to
carry out some task in
a business.
Product Customer
R&D Design Manufacturing Marketing Distribution Service
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Traditional Push Manufacturing Company
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Lean Production
Identify value Identify the
in specific business process
products/services. that delivers value.
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Theory of Constraints
Only actions 2. Allow the
that strengthen weakest link to
the weakest link set the tempo.
in the chain
improve the
process.
3. Focus on
1. Identify the improving
weakest link. the weakest
link.
4. Recognize that
the weakest link
is no longer so.
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Six Sigma
A process improvement method relying on customer
feedback and fact-based data gathering and analysis
techniques to drive process improvement.
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Six Sigma
The Six Sigma DMAIC Framework
Stage Goals
Define Establish the scope and purpose of the project.
Diagram the flow of the current process.
Establish the customer's requirements for the
process.
Measure Gather baseline performance data related to
the existing process.
Narrow the scope of the project to the most
important problems.
Analyze Identify the root cause(s) of the problems
identified in the Measure stage.
Improve Develop, evaluate, and implement solutions
to the problems.
Control Ensure that problems remain fixed.
Seek to improve the new methods over time.
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IMA Guidelines for Ethical Behavior
Recognize and
communicate professional
limitations that preclude
responsible judgment.
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IMA Guidelines for Ethical Behavior
Do not disclose confidential
information unless legally
obligated to do so.
Do not use
confidential
information for Confidentiality
unethical or illegal
advantage.
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IMA Guidelines for Ethical Behavior
Mitigate conflicts of
interest and advise others
of potential conflicts.
Refrain from
conduct that
would prejudice Integrity
carrying out
duties ethically.
Abstain from activities that
might discredit the
profession.
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IMA Guidelines for Ethical Behavior
Communicate information
fairly and objectively.
Disclose delays or
deficiencies in information
Credibility timeliness, processing, or
internal controls.
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Corporate Governance
The system by
which a company is directed
and controlled.
Board of Incentives and
Directors monitoring for
Top To pursue
Management objectives of
Stockholders
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Enterprise Risk Management
Should I try to avoid the risk,
share the risk, accept the
risk, or reduce the risk?
A process used
by a company to
proactively identify
and manage risk.
Environmental
Customers Employees Suppliers Communities Stockholders & Human Rights
Advocates
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End of Chapter 1
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