Activity-based strategic management

• Main Authors: Manalo, Romeo Galang, Manalo, Marivic Valenzuela
• Format: text
• Published: Animo Repository 2024
• Online Access: https://animorepository.dlsu.edu.ph/faculty_research/12262
• Institution: De La Salle University

This paper introduces a framework that could change the way firms set their strategies and goals. This framework links the corporate budget to the corporate strategies which are cascaded down to the last employee of the company. This framework bridges the gap between the operations personnel and with the finance people as they talk of only the jargon of activity or process costs. This framework is flexible as it can increase or decrease the budget from the corporate down to the smallest unit of the firm when the focus or goals of the company change within the period. This framework is an effective tool to predict future budgets and operations of the company as it uses activity costs which are more accurate than the traditional method of forecasting. This framework balances the profit maximization goal of a firm with that of the company's culture or shared values and societal expectations especially environmental protection, customer satisfaction and employee welfare.