"As global competition increases, businesses are being pressured to reach higher levels of productivity to price their products and services competitively." Explain how management accountants can play a role in helping management meet these challenges.
1 Highlight challenges that companies are facing (Product Diversity, Quality services, etc..)
Discuss some of the areas in economic sense that companies have to deal with
Customer Sovereignty - The needs and wants of customers
Privatisation giving rise to more competition
Government intervene on areas of regulations that pose a problems to companies
Tight control of labour - making labour costly and the impact on industries which are labour intensive
2 Discuss the increasing global competition
Give realistic figures like GDP growth in Singapore context
Reason for such increase in global competition
Impact on local companies
Increasing the market share; having a greater market share
3a How to attain higher levels of productivity
Through the use of contemporary management tool and accounting
Such as ABC, TQM & Evaluating environmental costs
Cross subsidisation
Through what means? Discuss about technology, training, education, people & efficiency
Product being produced at lower cost makes it more price competitive
3b Discuss & give real life examples on the service & product line
How does increase in level of productivity value-add to pricing in the two different industries
5 Challenges that accountants are facing and affecting their contribution to the company
Discuss about their roles in helping to overcome these adversities