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Finance in Management and Leadership Assignment

   

Added on  2021-01-02

11 Pages3123 Words361 Views
Finance
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FINANCE IN MANAGEMENTAND LEADERSHIP
Finance in Management and Leadership Assignment_1

Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1Which users are interested in receiving financial information’s contains stakeholder map..1TASK 2............................................................................................................................................3Financial data and information required for decision making in the contemporary organisation................................................................................................................................................3TASK 3............................................................................................................................................4Different type of financial data and information required for decision making.....................4TASK 4............................................................................................................................................6Evaluation and comparison of data using financial statements subject to stakeholder’sperspective..............................................................................................................................6CONCLUSION................................................................................................................................8REFERENCES................................................................................................................................9
Finance in Management and Leadership Assignment_2

INTRODUCTIONFinancial management is said to be an efficient and effective administration of capital. Itwill assist an organisation to accomplish the objectives which are set for the period of time.While, financial leadership helps to guiding a non-profitable firm to attain future sustainability.Both management and leader is held responsible for all financial aspects of an organisation andplan to increase profitability of the company (Brigham and Houston, 2012). In this report,leadership and management concept is structured according to financial perspective. 3Morganisation which is a science based technology company engaging in emphasising the lives ofcommunities and business operations in right way. A critical discussion is being providedregarding communication with 3M stakeholders. Various types of financial data are being takenin context to the chosen organisation. Apart from this, comparison with types of financialstatements those are prepared by 3M is also being mentioned under this report.TASK 1Which users are interested in receiving financial information’s contains stakeholder mapThere are two type of main users as internal users and external users remain interested toget financial information of organisation. The information related to financial operations remainsessential for both the users, Internal users which are also considered as managers andaccountants use accounting information for making effective decisions policies and plansassociated with the organisation's operations and management. For managers it is required toanalyse the financial information to evaluate performance in finance terms. It is analysedwhether the financial resources are being used in proper manner or utilised at required area. External users contain owners, creditors, lenders, investors, government, general publicof organisation. These stakeholders do not take interest in internal operations and management.The financial information related to return on investment, profitability and market share,financial position in terms of assets, long term debts, equities and shareholders’ funds are themain information’s important for external users. Investors are the most common external users offinancial statements. Both credit and equity investors make and assess their investment decisionthrough using relevant financial data of the company.Stakeholders' map of 3M company1
Finance in Management and Leadership Assignment_3

Stakeholders mapping is said to be collaborative process of research, debate anddiscussion that are made from multiple perspectives in order to determine a key list ofstakeholders across the entire stakeholder’s range. It is categories into various parts: Identifying: Under this particular stage company need to determine who are the primarystakeholders of 3M company. Such as:Owner: It consists of investors, shareholders, rating agencies and so on. Customers: Under this, direct and indirect customers and legal advocates.Employees: Present and potential employees, retirees and representatives of thecompany.Industry: It consists of suppliers, competitors and industries opinion leaders. Analysing: Once an individual identified proper lists of stakeholders, it is helpful to do furtheranalysis to better examination of their relevance and perspective they offer to the company. 3Mhas developed complete lists of specific criteria to assist individual to determine stakeholderssuch as:Contribution: All the stakeholders of 3M company is having information on the issuesthat could be helpful to the company is being analyse effectively. Legitimacy: Position in organisation is primary surest avenues to power. It is related withthe follower’s beliefs that higher authority is having right to influence person and has anobligation to deal with the decision made by the top management. Willingness to engage: It means that how stakeholders of 3M is willingly coordinatingwith the decision making or policy formulation they are associated with the company(Molina and Preve, 2012).Mapping: Under this stakeholder is a visual exercise and evaluation tool that can use todetermine which stakeholders are most useful to engaged with the decision making within thedepartment. By this, it can easy to analyse where stakeholder stand in the complex situations. Itis basically done to examine the key stakeholders which is giving maximum attention in overallgrowth of the company.Prioritizing stakeholders: It has been seen that usually, it is not essential to engage with allstakeholder’s groups with the same level of intensity of the time. it can save time and cost incase, company can determine clearly regarding whom they are engaging with and why within an2
Finance in Management and Leadership Assignment_4

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