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10 The impact of government policy The role of government policy As discussed earlier, the ways in which government policies might influence future corporate strategy are difficult to forecast. Such policy areas could include: KAPLAN PUBLISHING chapter 1 • The performance of many business operations is influenced very strongly by the statutory and regulatory environment. • There is an almost endless list of laws, or categories of legislation, that affect business enterprises in domestic, national or international dimensions.
34 Combined probability matrix showing combined probability values for a range of values of number of cuts in Shaping and timber required (square metres =sqm). 4 Prob. 21; and (iii) The remainder of the management team are of the view that they are willing to consider the redesign change if the expected value (EV) solution is less than the current value of total unit cost. Discuss the impact of the possible changes in the quantity of timber and number of cuts in the Shaping process caused by the redesign of component A on the total cost per unit of component A.
Incentive schemes The availability of incentive schemes may make expanding into certain countries more attractive. Worker protection Legislation in this area may have an impact on the requirements for facilities and their costs. Restrictive practices These may affect the company’s ability to export to certain countries. KAPLAN PUBLISHING 43 Introduction to strategic management accounting Environment protection The company may need to develop new products which are more economical to run or which use materials which are less harmful to the environment when thrown away.
ACCA P5 Advanced performance management (APM) Essential text by Kaplan