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Why is accounting important to the four phases of strategic management?

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Mizdee | Student, Undergraduate | Valedictorian

Posted July 18, 2013 at 1:51 AM via web

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Why is accounting important to the four phases of strategic management?

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Kay Morse | College Teacher | (Level 1) Senior Educator

Posted July 18, 2013 at 10:12 PM (Answer #1)

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Harvard University Business Review defines the four phases of strategic planning as:

  • Basic Financial Planning
  • Forecast-Based Planning (analysis leading to predictions)
  • Externally Oriented Planning
  • Strategic Management

These areas all rely upon accounting (accounting: the systematic comprehensive recording and summarizing of business and financial transactions, with verification and analysis of results) to accomplish their end objectives of planning, forecasting, predicting, and managing.

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