logo

Financial Management Assignment(FM)

   

Added on  2020-06-06

6 Pages1393 Words40 Views
Financial Management

TABLE OF CONTENTSINTRODUCTION...........................................................................................................................11. Role of management in meeting the objectives of stakeholders including the application ofagency theory..........................................................................................................................12. Role of fiscal, monetary, interest rate and exchange rate policies in achievingmacroeconomic policy targets................................................................................................2CONCLUSION................................................................................................................................3REFERENCES................................................................................................................................4

INTRODUCTIONFinancial management is mainly considered as a practice in which an organisation willmanage all its monetary resources to meet the requirement of business operations (Daníelsson,2011). In this context, major roles of management are analysed through which they will be ableto meet the requirement of its stakeholders. Further, role of monetary and fiscal policy is alsotaken in to considerations to accomplish the macro economic objectives.1. Role of management in meeting the objectives of stakeholders including the application ofagency theoryThe term agency theory is a supervison that explains the relationship between theprinciples and agents in business.(AGENCY THEORY, 2017). It is mainly concerned towardsresolving the critical issues that exists in agency relationship due to unaligned objectives ordifferent aversion levels to risk. The principle is recognised as the principle in particular businesstransactions and is expected to represent the best interests of the principle without regard for theself-interest. As per the research, management of organisation is considered as principle andagents are considered as stakeholders of company (Brigham and Ehrhardt, 2013). Managementof company has to satisfy the needs of their stakeholders as they have their major role in smoothfunctioning of business operations. In this context, various roles of management of havedescribed in order to achieve the requirements of stakeholder through which company is able tomeet its objectives. These major stakeholders of organisation are as follows:Customers: These are considered as the asset of organisation to whom company selltheir products and maximize profits. It is a well-known fact that the main objective ofconsumers is that the management should provide high quality of products and servicesat reasonable prices (Chandra, 2011). In order to satisfy the needs of consumers, themanagement of company a specific process through in which they analyse the demand ofits consumers by taking the reviews through interview, feedback and also apply effectivepricing policy through which it will be able to satisfy the demand of consumers. Further,there are various objectives of consumers like better services after purchasing theproducts.Shareholders: These are also considered as major stakeholder of company who providefinancial resources through which company is able to meet its requirements of funds(Petty and et.al., 2015). In this context, the main objectives of shareholders is to gain1

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Financial Management Assignment - M&S PLC
|7
|1432
|71

Financial Management of Tesco Plc
|7
|1244
|29

Financial Management - Assignment
|6
|1282
|377

Financial Management Assignment Solved
|6
|1435
|370

Financial Management Assignment - Solution
|6
|1492
|125

Financial Management Assignment - Solved
|6
|1387
|198