The Problems with Information Support of Strategic Management

Abstract

Currently, most successful companies have moved from short-term planning to consistent strategic business management. The scope of strategic decisions is much wider than in those taken within the framework of operational management, therefore, the approaches to accounting and analytical support of management are changing. The management accounting system should be built on the basis of the study of the global goals of the company, evaluating its strengths and weaknesses, as well as market conditions of activity. Its main purpose is to create an information basis for the distribution of tasks and resources between the structural units of an economic entity in such a way as to ensure the optimal ratio between capital invested in business and profit. The aim of the study is to consider the main problems of providing information for strategic management in an ever-changing market environment and to develop proposals and recommendations that allow us to determine conceptual approaches to the formation of an array of data necessary for making managerial decisions for the long term. The main problems that management companies face when making strategic decisions are highlighted. The authors discuss the possibility of using a number of accounting and analytical tools for information management in a dynamic market environment. A form of internal reporting is proposed to assess the current market position of a company in order to predict its competitive position in the market for a particular product. A form of a diagnostic card for providing an opportunity to assess the prospects of launching a new product is proposed as well.