The Important Role of Financial Analysts and Accounting in the Business Strategy Formulation Process of Organizations

by

TABLE OF CONTENTS

CHAPTER 1: INTRODUCTION1

Background of the Study1

Research Aim and Objective1

Research Questions2

Significance of the Study2

CHAPTER 2: LITERATURE REVIEW3

Overview of Strategy3

Strategy Formulation5

Accounting6

Reporting and Accounting in Global Economy of Today8

Financial Accounting9

Financial Analysts12

Financial Analysts and Strategic Management12

CHAPTER 3: METHODOLOGY15

Research Approach15

Advantages and Disadvantages of Secondary Data16

Data Collection Procedure16

Searching Technique17

Literature Search17

Data Sources18

Limitations18

Validity19

Generalizability20

Ethical Considerations21

REFERENCE23

CHAPTER 1: INTRODUCTION

Background of the Study

Finance and accounting has been lying at the heart of every business, irrespective of their fields and industry. It may be possible for an organisation to survive for some time without having a strong marketing plan, or having a poor human resources and probable a poor or weak business strategy. Nevertheless, an organization will not survive if there are faults in the control and management of the organisation's financial system. Effective accounting record and financial management helps an organisation to be stable and stand in harsh or critical stances. Providing a supportive back, it is however; many times underestimated (Ramezani, Soenen & Jung, 2002, 60).

In today's business scenario, financial analysts have acquired great importance in influencing the process of formation of strategies within an organisation, but so far, a little mount of attention has been paid to the complicated procedures of interacting, and in corresponding the strategic outcomes.

Research Aim and Objective

The aim of the research will be to identify and highlight the role played by financial analysts and accounting in the business strategy formulation Process of an Organisation. This aim will be achieved under the light of following objectives:

Analyse the formulation of strategy

To identify the role played by financial accounting in a business

To indentify the role of accounting information in accountability of a business

Analyse the application of techniques by financial analysts in different decision making

Research Questions

The research will be based on following research questions:

What is the process for strategic formulation?

What is the role of financial accounting in an organisation?

How accounting information helps businesses be accountable?

How do financial analysts apply their analytical techniques in different decision making?

Significance of the Study

This article will help in identifying the role played by financial accounting and financial analysts in an organisation. This will highlight the importance of financial reporting and financial accounting. It will help organisations in understanding how their role influences various decisions. Furthermore, it will help the professionals in understanding how important and critical is the role played by the financial recordings in a strategic development of a business. The research also places emphasis on interaction of financial analysts with the business firms. What benefits could be attained from these analysts (Baxter and Chua, 2003, 97).

Furthermore, by understanding how the influence business' strategies, managers would be able to identify what drawbacks financial accounting has, and if there are faults how they are going to affect the business.

CHAPTER 2: LITERATURE REVIEW

Overview of Strategy

The purpose of strategy is to prepare for future success. Much has been written about organizational direction and the strategy-making process over the past 3 decades. Effective strategy helps the organization gain ...