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However, as threshold values of quality have improved in most firms, this requires an increasing level of quality in firms that choose quality as a differentiating characteristic. Firms employing differentiation strategies should also seek to exploit other activities of the value chain (for example, quality of after-sales service or speed of delivery). As a result of this, such firms should also have to consider non-financial performance measures: for example, customer satisfaction (at the level of service they have received).

Co m Many companies do not 'define explicit strategic objectives or milestones that are regularly and formally monitored as part of the ongoing management control process'. ter Informal control does not always work because it enables managers to skate over important strategic issues and choices. 3 Guidelines for a strategic control system The characteristics of strategic control systems can be measured on two axes. How formal is the process? (b) How many milestones are identified for review? ym a (a) As there is no optimum number of milestones or degree of formality, Goold and Quinn suggest these guidelines.

Ter ial Strategic management accounting translates the consequences of different strategies into a common accounting language for comparison. It helps to ensure goal congruence, again by translating business activities into the common language of finance. Goal congruence is achieved when individuals or groups in an organisation take actions which are in their self-interest and also in the best interest of the organisation as a whole. 5 What information could strategic management accounting provide?

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