Strategic Management Accounting in a Network Economy (Management for Professionals)

About This Book
Contents
About the Author
1 Entering the Network Economy
	1.1 SMA Review
	1.2 SMA Dimensions
	1.3 Value as the Central Theme
	1.4 Beyond the Boundary
	1.5 Business Integration in the Network Economy
	1.6 SMA in the Transforming Network Economy
	1.7 Objectives of the Book
	1.8 Organization of the Book
	1.9 Conclusion
	References
2 Decision Making Under Uncertainty—Basic Concepts and Techniques
	2.1 Decision Model
	2.2 Frame of References
		2.2.1 Decision Making
		2.2.2 Decision Control
	2.3 Decision Tree
	2.4 Example: Build or Buy
		2.4.1 Illustration
	2.5 Probability
		2.5.1 Subjective Probability
	2.6 Expected Value
	2.7 Evaluation Unit & Evaluation Date
	2.8 Making Choices
		2.8.1 Direct Choice
		2.8.2 Outcome Dominance
		2.8.3 Probabilistic Dominance
	2.9 Certainty Equivalents
	2.10 Further Remarks on Expected Value
	2.11 Conclusion
	References
3 Decision Making Under Uncertainty—Preference Curve, Sequential Analysis, and Multiple Criteria Assessment
	3.1 Preference Curve
	3.2 Plotting a Preference Curve
		3.2.1 Risk Behaviors
	3.3 Example 1—Preference Curve
		3.3.1 Implications and Limitations
	3.4 Mixed Method with Risk Focus
	3.5 Sequential Analysis
		3.5.1 Example II - Rollback Technique
		3.5.2 Complete Strategy Using Mixed Method
		3.5.3 Further Example with Strict Sequential Constraints
	3.6 Multiple Criteria Assessment
		3.6.1 Satisficing Procedure
		3.6.2 Tradeoff Procedure
	3.7 Conclusion
	Reference
4 Valuing Business—Concepts and Techniques
	4.1 Introduction
	4.2 General Valuation Approaches
	4.3 Discounted Cash Flow (DCF)
		4.3.1 Discount Rate (R)
	4.4 Free Cash Flow (FCF)
		4.4.1 Transformation Process
	4.5 Terminal Value
	4.6 Abnormal Income-Based Approach
	4.7 Cost Method
		4.7.1 Asset Overstatement
		4.7.2 Asset Understatement
	4.8 Multiple Comparable
		4.8.1 Candidates for Comparison
		4.8.2 Equity Approach
		4.8.3 Entity Approach
	4.9 Conclusion
	References
5 Competitive Position—Strategic Cost and Value
	5.1 Introduction
	5.2 A Search for Competitive Position
	5.3 Competitive Drivers
		5.3.1 Value Attributes
		5.3.2 Cost Attributes
		5.3.3 Configuration Attributes
		5.3.4 Example—BBK Electronics and Xiaomi
	5.4 Value Curve and Value Chains Analysis
		5.4.1 Value Curve
		5.4.2 Profit Model
		5.4.3 Value Chain Analysis (VCA)
		5.4.4 Value-Added Versus Non Value-added Activities
		5.4.5 Case Discussion—Faro Furniture Pty
		5.4.6 New Value Model
	5.5 Scale Driver
		5.5.1 Manage the Scale Driver
	5.6 Industry Value Chain Analysis
	5.7 Competitive Position and Financial Metrics
	5.8 Conclusion
	References
6 Competitive Position: Network Integration
	6.1 Introduction
	6.2 Network as the Fourth Contributor
	6.3 Theoretical Explanations on Network Effect
	6.4 Forms of Network Integration
	6.5 Assessment of Network Integration
		6.5.1 Financial Assessment in Outsourcing Decision
		6.5.2 Financial Assessment in Supply Chain Management (SCM)
		6.5.3 Financial Assessment in Strategic Alliance
	6.6 Determinants of Network Influence
		6.6.1 Social Network Analysis
		6.6.2 Resource Dependence and Symmetry of Interest
	6.7 Implications for the Network Influence
	6.8 Conclusion
	References
7 Market Power and Market Value Creation
	7.1 Introduction
	7.2 Market Power Model
		7.2.1 Price Elasticity from Strategic Perspective
	7.3 Price Elasticity, Sales Revenue and Price
	7.4 Brands and Strategic Synchronization
		7.4.1 Brand and Market Consequences
		7.4.2 Strategic Synchronization
	7.5 From Brand Strength to Brand Value
		7.5.1 Brand Value
	7.6 Customer Value Creation
		7.6.1 “True” Profits (please also refer to Chapters 4 and 5 of my book in [2018])
		7.6.2 Customer Lifetime Value (CLV) (please also refer to Kumar and Rajan [2009]; Kumar and Shah [2009])
	7.7 Market Value Accumulation
	7.8 Conclusion
	References
8 Pricing Strategies in a Dynamic Market
	8.1 Introduction
	8.2 Pricing as a Strategic Weapon
	8.3 Price Tiers
	8.4 Cost-Based Pricing Approach
		8.4.1 Short-Term Basis
		8.4.2 Long Term Basis
	8.5 Market-Based Pricing
		8.5.1 Game Theory in Pricing
		8.5.2 Implications for Pricing Strategies
	8.6 Value-Based Pricing
		8.6.1 Target Costing
	8.7 Pricing Discretion
	8.8 Dynamic Pricing
	8.9 Conclusion
	References
9 Digital Business and Revenue Models
	9.1 Introduction
	9.2 Rethinking the Network Economy
	9.3 Internet Business Models
	9.4 Revenue Drivers
		9.4.1 Long-Tail Operation
		9.4.2 Network Effects
	9.5 Lock-in Effect
	9.6 Price Model
	9.7 Case Discussion
	9.8 Conclusion
	References
10 Valuing Internet Stock and Intangible Assets
	10.1 Introduction
	10.2 Accounting Conservatism
	10.3 Valuation Methods for Internet Stock
		10.3.1 Adjusted P/E Multiples
		10.3.2 Margin Adjusted Sales Multiples
		10.3.3 Customer-Based Valuation
	10.4 Valuation Under Uncertainty
		10.4.1 Discounted Valuations Under Uncertainty
	10.5 Intangible Assets
	10.6 Valuing Specific Technology
	10.7 Valuing Brand
	10.8 Conclusion
	References
11 Management Control System in the Business Network: Control and Trust
	11.1 Introduction
	11.2 MCS Framework
		11.2.1 Strategic Control Process
		11.2.2 Management Control Process
		11.2.3 Motivation Process
		11.2.4 Informal Control
	11.3 Formal vs Informal Control
	11.4 Management Control and Networks
	11.5 Trust and Risk
	11.6 Control and Risk
	11.7 Trust as a Complementary Mechanism
	11.8 Payoff Structure
	11.9 The Impact of PCB and Reliance on Trusting Behaviour
	11.10 The Use of Trust and Control in the Business Network
		11.10.1 Outsourcing
		11.10.2 Virtual Organization
		11.10.3 Collaborative Alliance
		11.10.4 Business Ecosystem
	11.11 Conclusion
	References
12 Value Creation, Capture, and Allocation
	12.1 Introduction
	12.2 Value Creation and Network Integration
		12.2.1 Added Value Business Activities
		12.2.2 Costs
		12.2.3 Products
		12.2.4 Vertical Value Chain
	12.3 Value Capture
	12.4 Frictions with Value Capture
	12.5 Revenue Allocation
		12.5.1 Stand-Alone Basis
		12.5.2 Incremental Revenue
	12.6 Shapley Value
	12.7 More Applications
		12.7.1 E-marketing
		12.7.2 Product Design
		12.7.3 Shared Resources
	12.8 Governance in the Network Economy
	12.9 Conclusions
	References