An investigation into application of strategic management accounting in organizations: a case study of Kenya Literature Bureau
This study aimed at investigating application of strategic management accounting III organizations and in particular, Kenya Literature Bureau. In the advent of new manufacturing and improved information technologies, the focus on the customer and growth of worldwide markets, business environment has increasingly become competitive for organizations. Conversely, firms are inevitably adopting strategic ways of management. This implies that accounting system must facilitate strategic management by providing strategic information. In the traditional management accounting firms tended to focus primarily on financial performance measures such as growth in sales and earnings, cash flows but in the contemporary business environment, they use strategic management to focus primarily on strategic measures of success, many of which are non-financial measures of operations such as market share, product quality, customer satisfaction and growth opportunities. Arising from the evaluation of the results on the basis of four perspectives of a balanced score card model, financial measurements and the non-financial factors which include customer service, internal business process and learning and innovation factors, the study concluded that KLB practices strategic management accounting to a great extent. The study further established and recommended opportunities for improvement particularly lack of competitor analysis information that is critical for benchmarking in a competitive environment, formal periodical market surveys to determine market share of KLB in the publishing industry and increased participation of Finance and Accounting department in generating relevant information needed by various managers for decision making purposes. Recommendations for further study have also been made which include carrying out a similar study in some years to corne in order to evaluate the levels of improvement in application of strategic management accounting in KLB and/or extend the study to other firms within the publishing industry.