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Assignment on Financial management

   

Added on  2021-02-19

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Assignment
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Table of ContentsINTRODUCTION...........................................................................................................................1MAIN BODY...................................................................................................................................1TASK 1............................................................................................................................................1P1 Formal or informal approaches used for effective decision making in the organization.......1TASK 2............................................................................................................................................3P2 Key financial management principle required by the business in order to achieve long ternsustainability with the help of financial strategy.........................................................................3TASK 3............................................................................................................................................5P3 Role of management accountant in the organization..............................................................5P4 Evaluate the role of accounting control system......................................................................7CONCLUSION................................................................................................................................8REFERENCES................................................................................................................................9
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INTRODUCTIONFinancial management is method of managing their finance in order analyse theinvestment of an individual or for a business. With the help of financial management, person cantake effective decision which is beneficial for the organization and it will further helps inachieving their business goals & objectives (Andreou Louca and Panayides, 2014). It willfocuses on ratios. Debt, equity, portfolio management, distribution of dividend and further helpthe top management to develop strategy to run their business in effective way. Tesco Plc selectedfor the better understanding of this concept and it was established in 1919 by John Cohen. It isBritish multinational grocery retail company which serve across the world. This report includethe various topics such as different approaches used in effective decision making, analysemanagement accounting principle to develop financial strategy. In addition, it includes the roleof management accountant & accounting control systems. MAIN BODYTASK 1P1 Formal or informal approaches used for effective decision making in the organizationIn the organization, management use the different types of approaches which impact thebusiness or help the top management in order to take effective decision which further helps inachieving business goals & objectives. There are two types of approaches followed by themanager of Tesco and it is discussed below: Formal approach: Structure approach: This approach used to define the hierarchy within organization, itwill include the each job, functions and whom to report regarding their work. It is totally dependupon how business operate their internal functions. It also include the different types of structurein the organization such as divisional, matrix, functions and geographical. Basically, divisionalstructure used in those entity which have different business units, geographical structure meansorganization have business operations in several location. Along with this, functional structurebased on the different jobs (Banerjee, 2015). Manager of the Tesco Plc can adopt this approachin order to build effective strategy for the decision making process. It further help the manager toachieve their business goals & objectives. 1
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System approach: In this approach, organization focus on interdependent or interactiveactivities which is beneficial for the company. It includes the management practices whereinternal as well as external factors affect the organization. Basically system approach used forthe evaluation of market elements which affect the productivity or profitability of the company.So manager of Tesco Plc can adopt system approach in order to analyse the factors which affectthe business and it will further helps in building effective strategy for the decision makingprocess. It further helps the organization to achieve their business goals & objectives. Process approach: This approach include the various activities which required toperform their operational or functional activity. It is the application of system approach wherethey follow the each step to complete their task in order to successful completion. With the helpof this, organization enhance their performance along with efficiency or effectiveness. It will bedone through internal or external review of their process. So manager have to analyse the factorsand then develop strategy according to it (Baños-Caballero, García-Terue and Martínez-Solano,2014). Tesco's manager can follow this approach in order to complete their task and achieve theirgoals which further helps in increasing productivity or profitability. From the above discussion, Tesco Plc follow the hierarchical organizational structurewhere it is divided into may part which helps the manager to effectively focus on each unit. Itwill help the manager to measure the requirement and build strategy according to it. Forexample: food trading & non food trading manager analyse all the business activities and thengenerate strategy which further helps in decision making processes. Informal approach:2Illustration 1: Organizational structure of Tesco Plc, 2016
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