Strategic management accounting Essay Example | Topics and Well Written Essays - 2750 words

Strategic management accounting - Essay Example The company provides total technical support for the installation of the machinery sold to the global customers to gain their confidence and long-term relation (Funding Universe, n.d.). Renishaw is well recognized for its manufacturing of complex machineries that could help the customers to improve their efficiencies and their potential capacities along with greater quality of the products and improving of operational performance. Renishaw has always aimed to meet the unending needs of the customers by offering them technology beyond their reach and capability. The products offered by the company assures enhancement of quality and productivity along with superior customer service (Renishaw, 2012c). Renishaw was a private company in 1982 but in the year 1983 the company went public and offered stocks in the London’s Stock Exchange Market. Renishaw is quite hierarchical which indicates that the company is centralized and the decisions are made at the top management and then comm unicated to the other levels of management in the company (Renishaw, 2012a). This report would highlight the competitive strategy and strategic position of the Renishaw Company. This strategic analysis would be regarding the market sector, employment of appropriate strategic management and management accounting tools. The internal analysis of the company would be analysed using the SW of SWOT analysis (Strenghts, Weaknesses, Opportunities and Threats) analysis and the external environment of the company would be analysed using the OT of SWOT analysis as well as the PESTLE (Political, Economical, Socio-cultural, Technological, Legal and Environmental factor ) analysis. The competitive strategy would be analyzed with the BCG matrix. In the end, recommendations would be provided to protect the company from new entrant’s adopted strategy and to help the company grow further in the years to come. Analysis of Strategic Position – Strengths, Weaknesses, Opportunities and Thre ats (SWOT) The strategic position of the company is based on combination of internal analysis and external analysis. The strategic position of the company has been analyzed with the help of SWOT and PESTLE analysis and these two analytical tools are applied on Renishaw. SWOT Analysis SWOT analysis is used to analyse both the internal as well as the external environment of the company (Barney, & Hesterly, 2008). SWOT analysis would be helpful to identify the major internal strengths as well as the major internal weaknesses of the company along with external opportunities and threats that can influence the performance (Cravens, and Piercy, 2008). Strengths The foremost strength of the company is its technological advancement in terms of machinery and products. The company is also known for its innovation and superior quality. Due to constant innovation the company is able to provide the customers with high quality products to satisfy the customer’s needs and to meet the custome r’s expectation (Renishaw, 2012b). The company’s workforce consists of young and energetic individuals that are constantly encouraged to make their way forward with the help and guidance from their seniors (Renishaw, 2012c). The company also focuses on the training and development programmes each year to enhance the productivity and knowledge of its workforce. This training and development programmes have provided the company with significant benefits due to which the company is ab