Financial Management and Decisions

This presentation discusses the importance of financial management and decision-making in an organization, using the example of Huawei. It analyzes the financial statements and ratios of the company to assess its stability and performance. The presentation also provides recommendations for the future development of the organization.

FINANCIAL MANAGEMENT AND DECISIONS

Introduction
 Achievement of success in an organisation requires the
specific task to be completed among which the
understanding of the performance of an organisation is
one. The development of the success o the
organisation is based on the proper analysis of the
balance sheet and other developmental ratios from the
financial statements. The development of the
organisation is based on the proper analysis o the
financial ratios of an organisation. In this report, the
financial statement of the year 2016 of Huawei is
compared for the proper understanding of the stability
of the organisation. The report also deals in with the
recommendation for the better development of the
organisation in coming years.

Forming or mixing of existing
finance
 The Huawei prefers the
external source of fiancé in
the organisation for the
smooth development of the
organisation. It is evident
that the rise in the
organisation is due to the
smooth achieving of the
fiancé from the
shareholders of the
organisation The Huawei
also prefers the use of the
interval financing source
for the making of the
objective smooth and the
greasy.

Raising of New Finance
 As mentioned by Tse et
al. (2016, p.1179), the
use of the finance in the
field of development is
one of the most
important criteria for the
better development in
coming year. It is
essential to understand
that the rise in the
development chance is
from the allocation of the
finance in proper and
required ways.

Contd..
 The use of the
internal source of
funding and
finance would
help in the better
rising of the
ownership of the
organisation.

Performance of the
company
 The performance of the company in
terms of above calculation marks that the
use of the resources and the
development of the organisation are not
up to mark and does not contributes to
smooth operation of the organisation.

Contd…
Column1 Column2 Column3
Current ratio
Curent assets 301646
Curent liabilities 212627
Current ratio 1.418662729

Contd…
Column1 Column2 Column3
Quick Ratio
Cash 110561
Short term investments 14647
Recievables 93260
Quick Ratio 11.08187075

Activity ratios
 The activity ratio includes the
inventory/stock turnover ratio in the
organisation. The debtor's turnover ratio,
Assets turnover ratio and Creditors
turnover ratio are included in the activity
ratios of an organisation.

Contd…
Column1 Column2 Column3 Column4 Column5 Column6 Column7
Inventory turn over ratio
Cost of goods sold 230312
Average stock 53969.5 Average stock op cl
46576 61363
Inventory turnover ratio 4.267447355
Average stock 53969.5

Debtor’s turnover ratio
Column1 Column2 Column3 Column4 Column5 Column6
Debtors turnover ratio
Credit sales 395009
Average debtors 1272 openiong closing
446 2098
Debtors turnover ratio 310.5416667
Average 1272

Assets turnover ratio
 As supported by Arkan et al. (2016, p.25),
the assets turnover ration marks the
changes of the assets in the organisation
in a single fiscal year. The development
of the Assets turnover ratio marks the
multiplication or the rotation of the assets
in the organisation

Contd…
Column1 Column2 Column3 Column4 Column5 Column6
total assets turn over ratio
sales 395009
Average total assets 340944 opening closing
309773 372115
total assets turnover ratio 1.1585744
Average 340944

Contd..
Column1 Column2 Column3 Column4 Column5 Column6
Fixed Assets turnover ratio
Sales 395009
average fixed assets 31343
opening closing
Fixed Assets turnover ratio 12.60278212 27248 35438
Average 31343

Contd..
Column1 Column2 Column3 Column4 Column5 Column6
Capital turnover ratio
Sales 395009
Average capital employed 340964
opening closing
Capital turnover ratio 1.15850647 309773 372155
Average 340964

Contd..
Column1 Column2 Column3 Column4 Column5 Column6
Working capital turnover ratio
Sales 395009
Net working capital 89019
Current assets Current Liabilities
Working capital turnover ratio 4.43735607 301646 212627
Net working capital 89019

Creditors turnover ratio
Column1 Column2 Column3 Column4 Column5 Column6
Creditors turnover ratio
Credit Purchase 500000
Average creditors 53458 9245 opening closing
45899 61017
Creditors turnover ratio 9.353137042 Average creditors 53458

Recommendation
 From the above operation of the
assignment, it can be easily judged that
the development of the organization is
quite better in terms of a Smartphone
company. It can be evidently supported
that the use of the financial statement in
the organisation have proved to better
and development of the organization
have marked the smooth operation of the
organisation.

Contd..
 The organisation may try out the presentation of
both operating and non-operating form of
presentation. The presentation of the operating
and non-operating activities would help in the
proper managing of the financial transaction.
Proper examining of the financial statement of
would also help the organisation in the smooth
development of the organisation along with the
better support of the organisation. Searching of
the best practices in the organisation in terms of
other organisation would help in the better
management of the organisation in the best
practices available.

Strategic Planning
 The strategies of the Huawei used for the better
development of the organisation are based on
the better supporting of the customers of the
organisation. The customer satisfaction have
maintained for the better development of the
origination for years. The developments of the
organisation have been based on the use of the
consumer shopping trips as easily as possible.
One of the strategic formations of the
organisation is based on the application of the
lower prices for the people who are deprived of
sufficient financial condition.

Structure of the Business:
 The structure of the Huawei is an vertical
one and is headed by the Chairman of
the organisation. The Chairman directs
the Board of directors of Huawei Plc. The
Board of Directors of Plc maintains the
Nomination committee, Audit committee,
Remuneration committee and Corporate
Responsibility Committee.

Change Management
Issues
 As supported by Dietch et al. (2016,
p.646), the change is an inevitable factor
of the organisation and thus needs to be
carefully dealt for the better and smooth
operation of the organisation. The
organisation faces the ADKAR’s model of
change issues.

Positioning Statement
 The positioning statement of the Huawei
is well suited and proper for the common
people in the society of UK and of whole
world. It is effective and efficient to know
about the vision of Huawei which is “To
be the most highly valued business by:
the customers we serve, the communities
in which we operates, our loyal and
committed colleagues and of course our
shareholders (www.Huaweiplc.com,
(2016).”

Market Share Plans
 The Huawei
measures the
business
environment and
act in terms of the
demand and the
supply rate of the
commodities they
provide to the
customers of the
society.

Market Challenges a Global
Economy
 As supported by Kaustia
and Rantapuska, (2016,
p.15), the use of the
organisation structure
has been for the better
supporting of the
organisation in
unfavourable condition.
The unfavourable
conditions of the
organisation are only due
to the challenges in the
global economy and
market.

Conclusion
 From the above report, it can be concluded that the
use of the financial statement of the organisation
can be used for the better development of the
organisation. Most of the smooth operation of the
organisation is from the better analysis of the
organisational financial statement. It is evident
from the above report that the use of the balance
sheet, profit and loss statement and trading
Account have been of prime importance in the
organisation. In addition to the above, the support
of the ratios in the operation of the organisation
has been clearly determined with proper
calculation and analysis.

References
 www.Huaweiplc.com, (2016) Huawei PLC Available at:
https://www.Huaweiplc.com/investors/understanding-Huawei/, [Accessed
on 26 Feb 2017]
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