Assisting the organization’s competitive position, and working with other managers to unsure the organization’s long-run competitiveness in its industry. Nowadays the business environment is changing very rapidly. These changes are reflected in global competition, rapidly advancing technology and improved communication systems, such as the internet. The activities that make an enterprise successful today may no longer be sufficient next year. A crucial role of managerial accounting is to continually assess how an organization stacks up against the competition, with an eye toward continuously improving. Among the question asked in assessing an organization’s competitive position are the following:
- How well is the organization doing in its internal operations and business processes?
- How well is the organization doing in the eyes of its customers? Are their needs being served as well as possible?
- How well is the organization doing from the standpoint of innovation, learning, and continuously improving operations? Is the organization a trendsetter that embraces new products, new services, and new technology? Or is it falling behind?
- How well is the organization doing financially? Is the enterprise siablr as a continuing entity?