Financial Management: Techniques, Stakeholder Management, Management Accounting, Fraud Detection, Ethical Decision Making

Financial
Management

INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
Section A.........................................................................................................................................1
1. Evaluate the range of techniques, approaches and factors which contribute in effective
decision making...........................................................................................................................1
2. Stakeholder management and conflicting objectives of different stakeholders group............2
3. Value of management accounting techniques in controlling cost and maximising
shareholders value.......................................................................................................................3
4. Fraud detection technique and approaches to ethical decisions making.................................4
5. Reflection on the basis of your learning..................................................................................5
Section B..........................................................................................................................................5
1. Evaluate that how data obtaining help to inform operational and strategic decisions.............5
2. Compare and contrast three investment appraisal techniques and evaluate its effectiveness. 8
3. Evaluate the values of techniques which helps in financial decision making process..........10
4. Analyse how financial decision making support long term sustainability............................11
5. Recommendations..................................................................................................................12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
Financial management aims to understand the company's overall financial responsibility
which causes trouble being planned for financial purposes. Financial analysis is an integral part
of the particular business which leads to the growth of a company. Data on the accounts helps
companies to determine the profitability (Abrahamsen And et.al., 2018). For the better
understanding of this concept, Tesco Plc is selected. Section A is derived from various topics,
such as approaches, techniques or aspects to financial management that leads to successful
decision making processes. It also covers stakeholder involvement, management shareholder
conflict, financial management value, etc. Furthermore, this section discusses the various forms
of theft, ethics in decision-making processes or the expression of this principle that the author
has learned. Section B of this study covers the value of the business with the assistance of
investment appraisal strategies, financial ratios and how strategies assist in financial decision-
making. It also addresses how financial judgment promotes stability in the long run along with
several suggestions.
MAIN BODY
Section A
1. Evaluate the range of techniques, approaches and factors which contribute in effective
decision making
Approaches:
 Make or buy decision: The decision to make or buy is the part of creating a rational choice
between designing an object directly (in-house) or purchasing it commercially (to an outside
distributor). The purchases side of the judgment is also called outsourcing. Make-or - buy
options typically occur when a business that has produced a unit of product or drastically
updated a product or component has issues with existing vendors, or has lost capability or
increased demand.
 Formal and information approach: It is used to generate a credible plan for the firm's
decision-making process. This approach eliminates the unbiased decision and gave
justification of the reasons make appropriate decisions. This helps in increasing the
opportunity to pick approaches that satisfy the power of different stakeholder as per
their needs. There are logical viable alternatives which eliminate waste of the tasks involved.
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The approach allows for a more urgent re-evaluation of the partners' circumstances,
priorities or aim changes. It allows Tesco Plc to consider making more business decisions in
every respect.
Techniques:
 T-Chart: This diagram is designed to display the options with maximum and minimum
points. That means both negative and positive aspects are taken into account when choosing
critical decisions
 Decision Matrix: Management teams should assess the strategy at the time of requirement.
Within this matrix, all of the possibilities are placed first in the bar counter, and the things
that influenced the first segment decisions (Agrawal, 2018). This includes ranking and
weighing parameters based on their relevance and picking the very best options.
Factors Contributes in effective decision making:
 Social factors: Tesco Plc interactions with newly formed companies, trustworthy alliance
with the customer and their company have a full effect on the product lifecycle in the
enterprise. To develop public confidence with managers is essential to take publicly
supportive acts. Social factors must acknowledge preserving the interests of the public at the
course of creating strategic decisions to optimize their participation.
 Financial factors: The formation of a strategic move refers to the financial resources of a
organization. The capital and the long term opportunity to make assumptions on their
investment of these construction cost is therefore easy to transport out. Tesco’s management
determine certain financial considerations that influence decision-making processes and then
further impact both economic advantage and performance. That process relates to effective
decision-making for managers.
2. Stakeholder management and conflicting objectives of different stakeholders group
Stakeholders are those people who can significantly affect or influence a strategy. They
may also involve people who have a particular interest in social, intellectual, or political
objectives in the project, although it does not specifically affect them personally and their family,
friends and colleagues (BLŠTÁKOVÁ And et.al., 2019). By general, owners tend to be paying
interest in a campaign or collective of activists on how it will influence or harm them. The
further they go on profiting from it, or ending up having lost it, and the likelihood of everyone’s
interest. The bigger the effort or group they are participating in, the increasing their purpose as
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