Based on the picture below, explain each briefly like you are teaching this to your students. strengths limitations role of management accountant
Based on the picture below, explain each briefly like you are teaching this to your students. strengths limitations role of management accountant
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
Related questions
Question
Based on the picture below, explain each briefly like you are teaching this to your students.
- strengths
- limitations
- role of management accountant
![on rankings. Focusing on two could miss other
critical potential forces. There will be differing
opinions about the implications of uncertainties,
sometimes motivated by individuals' incentives
and personal biases. Further, there is usually more
corrections as needed earlier than if they had no
early warning signals.
Strengths: Instead of assuming there is one best
answer to a strategic question, scenario planning
considers different possibilities for different futures. than just one key focal issue. The analysis can
It considers multiple uncertainties simultaneously.
Unlike simulation modeling, it requires subjective
thinking as well as quantitative analysis. It is
especially helpful when: uncertainty is high, there
have been costly surprises in the past, current
strategic thinking is weak, and there seem to be
few opportunities to pursue. Further, identifying
early warning signals is a good practice no matter
which strategic planning tool is used.
Limitations: Scenario planning is based on just
also be difficult to do well. It generally requires a
number of participants from different areas of the
company and can take a long time to complete
the exercise.
Role of the management accountant: As with
other strategic planning tools, management
accountants can lead or facilitate the process.
More specifically, they help identify key focal
issues, driving forces, and early warning indicators.
They can also represent different stakeholders'
views and assess the logic of the narratives. .
two critical uncertainties that are chosen based](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9e067029-99c4-4bb1-be82-8f450ae7592b%2Ff2bde153-7175-4c85-8cf1-4c727d73ff12%2F9fyadcs_processed.png&w=3840&q=75)
Transcribed Image Text:on rankings. Focusing on two could miss other
critical potential forces. There will be differing
opinions about the implications of uncertainties,
sometimes motivated by individuals' incentives
and personal biases. Further, there is usually more
corrections as needed earlier than if they had no
early warning signals.
Strengths: Instead of assuming there is one best
answer to a strategic question, scenario planning
considers different possibilities for different futures. than just one key focal issue. The analysis can
It considers multiple uncertainties simultaneously.
Unlike simulation modeling, it requires subjective
thinking as well as quantitative analysis. It is
especially helpful when: uncertainty is high, there
have been costly surprises in the past, current
strategic thinking is weak, and there seem to be
few opportunities to pursue. Further, identifying
early warning signals is a good practice no matter
which strategic planning tool is used.
Limitations: Scenario planning is based on just
also be difficult to do well. It generally requires a
number of participants from different areas of the
company and can take a long time to complete
the exercise.
Role of the management accountant: As with
other strategic planning tools, management
accountants can lead or facilitate the process.
More specifically, they help identify key focal
issues, driving forces, and early warning indicators.
They can also represent different stakeholders'
views and assess the logic of the narratives. .
two critical uncertainties that are chosen based
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Recommended textbooks for you
![Understanding Business](https://www.bartleby.com/isbn_cover_images/9781259929434/9781259929434_smallCoverImage.gif)
Understanding Business
Management
ISBN:
9781259929434
Author:
William Nickels
Publisher:
McGraw-Hill Education
![Management (14th Edition)](https://www.bartleby.com/isbn_cover_images/9780134527604/9780134527604_smallCoverImage.gif)
Management (14th Edition)
Management
ISBN:
9780134527604
Author:
Stephen P. Robbins, Mary A. Coulter
Publisher:
PEARSON
![Spreadsheet Modeling & Decision Analysis: A Pract…](https://www.bartleby.com/isbn_cover_images/9781305947412/9781305947412_smallCoverImage.gif)
Spreadsheet Modeling & Decision Analysis: A Pract…
Management
ISBN:
9781305947412
Author:
Cliff Ragsdale
Publisher:
Cengage Learning
![Understanding Business](https://www.bartleby.com/isbn_cover_images/9781259929434/9781259929434_smallCoverImage.gif)
Understanding Business
Management
ISBN:
9781259929434
Author:
William Nickels
Publisher:
McGraw-Hill Education
![Management (14th Edition)](https://www.bartleby.com/isbn_cover_images/9780134527604/9780134527604_smallCoverImage.gif)
Management (14th Edition)
Management
ISBN:
9780134527604
Author:
Stephen P. Robbins, Mary A. Coulter
Publisher:
PEARSON
![Spreadsheet Modeling & Decision Analysis: A Pract…](https://www.bartleby.com/isbn_cover_images/9781305947412/9781305947412_smallCoverImage.gif)
Spreadsheet Modeling & Decision Analysis: A Pract…
Management
ISBN:
9781305947412
Author:
Cliff Ragsdale
Publisher:
Cengage Learning
![Management Information Systems: Managing The Digi…](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9780135191798/9780135191798_smallCoverImage.jpg)
Management Information Systems: Managing The Digi…
Management
ISBN:
9780135191798
Author:
Kenneth C. Laudon, Jane P. Laudon
Publisher:
PEARSON
![Business Essentials (12th Edition) (What's New in…](https://www.bartleby.com/isbn_cover_images/9780134728391/9780134728391_smallCoverImage.gif)
Business Essentials (12th Edition) (What's New in…
Management
ISBN:
9780134728391
Author:
Ronald J. Ebert, Ricky W. Griffin
Publisher:
PEARSON
![Fundamentals of Management (10th Edition)](https://www.bartleby.com/isbn_cover_images/9780134237473/9780134237473_smallCoverImage.gif)
Fundamentals of Management (10th Edition)
Management
ISBN:
9780134237473
Author:
Stephen P. Robbins, Mary A. Coulter, David A. De Cenzo
Publisher:
PEARSON