THE FINANCIAL-ACCOUNTING INVOLVEMENT IN FORMULATING THE STRATEGY AND GETTING THE COMPETITIVE ADVANTAGE
THE FINANCIAL-ACCOUNTING INVOLVEMENT IN FORMULATING THE STRATEGY AND GETTING THE COMPETITIVE ADVANTAGE

Summary/Abstract: Choosing and implementing an optimal strategy actually means finding a solution through which the company manages, in time, to outrun competition and maintain the present advantages by being competitive. The business strategy reflects – and distinguishes from other levels of the company – in the competitive advantage. If there were no competitors, we would not be talking about strategy, since the single purpose of the strategic planning is to allow the company to get an advantage, efficient and sustained, before its competition. In the real world there is no perfect strategy. What matters is not the performance in absolute terms, but the performance in relation to competition. A good business strategy is the one through which the company can gain “ground” before competition, under the circumstances of supporting an acceptable cost for it. Discovering how one can elaborate an efficient strategy in order to get the competitive advantage is the basic task for the strategist. In order to be viable, the competitive advantage has to be durable, to be sustained for a long period of time. But for this condition to be fulfilled, the financial-accounting management’s contribution is absolutely necessary for grounding the decision. Therefore, the possibilities of getting capital are multiple, but which is the best choice? The elaboration of pro forma documents, of budgets represents other priorities for taking a decision regarding the strategy. Also, the financial-accounting management has to give an answer to the question “is it worth it or not?” when the decision factors have in view a specific strategy.

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