Financial Management Principles for Effective Financial Strategies

FINANCIAL MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
LO1. Apply different approaches used to support effective decision-making................................4
P1 Apply different formal and informal approaches used to support effective decision-making
.....................................................................................................................................................4
M1. Analyze formal and informal approaches applied to support decision-making addressing
both advantages and disadvantages.............................................................................................6
LO2. Analyze financial management principles which are used to support effective financial
strategies..........................................................................................................................................8
P2. Analyze the key financial management principles required by organizations to achieve
effective financial strategies for long term financial sustainability.............................................8
M2. Critically analyze the key financial management principles and their importance in
delivering effective financial strategies for long term financial sustainability..........................10
LO3. Evaluate the role of management accountants and accounting control systems..................11
P3. Evaluate the role of management accountants and their value as part of an integrated
system........................................................................................................................................11
P4. Evaluate the use of accounting control systems and their value as part of an integrated
business system..........................................................................................................................12
M3. Critically evaluate the role of management accountants and accounting control systems to
support a culture of ethical financial management....................................................................13
LO4. Evaluate ways in which financial decision-making supports sustainable performance.......14
P5. Evaluate the ways in which financial decision-making is important for supporting long
term financial sustainability.......................................................................................................14
M4. Critically evaluate how different ways of financial decision-making support long-term
financial sustainability...............................................................................................................15
CONCLUSION..............................................................................................................................17

REFERENCES..............................................................................................................................18

INTRODUCTION
Every business activity is directly or indirectly related to finance. Financial aspects are involved
in production, marketing, purchasing etc. Problems of finance are closely related to problems of
purchasing, production and marketing. Thus the problems of finance are inherent in some form
of activities of all departments. Financial management encompasses all activities that affect
future fund flow volume and time-related decisions. Finance, between production and marketing,
performs the same function as oil content in running a machine. There are some aspects in
production and marketing decisions that do not come in the field of financial management,
although they affect in finance.
This project report consists of two scenario’s; A and B. In which scenario A; consists of value
management accounting concept and techniques of management accounting for decision making
process and performance maximization for sustainable growth. The other scenario consist of
discussion on the annual report of Tesco Plc and additional to this various investment appraisal
techniques and ratio analysis for the company has been done in this report. The long investment
method provides the local council with the equipment to help determine options for methods,
groups and other diversionary issues using conventional understanding as it is.
The methodology better informs the Council when considering various organized options that
affect organizations, such as a reasonably long housing approach, a centralized vehicle and a
stimulus from the available funds left. It guarantees that the components, for example, the effect
of the cost / comfort level on the resident, the risk and the levels of consistency and the
motivating forces for the money will be considered determinants of these choices.