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Financial Management Assignment - M&S PLC

   

Added on  2020-12-10

7 Pages1432 Words71 Views
FINANCIAL MANAGEMENT

Table of ContentsINTRODUCTION...........................................................................................................................11. Discussing management's role in meeting stakeholder objectives and application agencytheory in financial management..................................................................................................12. Discussing and defining role of fiscal, monetary, interest rate and exchange rate policies inaccomplishing macroeconomic policy targets............................................................................2CONCLUSION................................................................................................................................3REFERENCES................................................................................................................................4

INTRODUCTIONFinancial management is managing funds, working capital in that way by which financialviability of company can be attained. Present report deals with M&S PLC, giant in retail sectorand financial management is of utmost important to it as operations are handled on large scale.Report will enumerate management's role in meeting stakeholder objectives and also agencytheory would be applied for analysing impact of financing, dividend and investment decisions inthe best way possible. On the other hand, various types of policies such as fiscal, monetary,interest rate and exchange rate policies implemented by UK government for achievingmacroeconomic policy targets will be discussed. 1. Discussing management's role in meeting stakeholder objectives and application agencytheory in financial managementThere are various stakeholders in M&S PLC such as creditors, employees, government,shareholders and management has the role to meet their objectives in the best way possible. Itcan be analysed that they should be provided with up to date financial statements to them (Bayar,Huseynov & Sardarli, 2018). It involves cash flow statement, balance sheet, income statement,statement of changes in equity so that overall performance of M&S PLC can be provided to themwith ease. The fundamental financial objectives of organisation are liquidity, efficiency,solvency, profitability and stability position should prevail in company by seeking this,stakeholders can take enhanced decisions. Thus, stakeholders' needs and objectives areeffectively met.Agency theory is one of the important theory which is a supposition explainingrelationship between principals and agents in the best way possible. It is concerned witheffectively resolving issues which may exist when goals are not perfectly aligned or variousaversion level to risk. Main agency relationship in financial management occurs between M&SPLC management regarded as agents and shareholders termed as principals. It aids inachievement of organisational objective as high standard principal-agent model is being used andfurthermore, minimisation of costs can be accomplished.This has an impact on dividend, investment and financing decisions. Investmentdecisions may be impacted as M&S PLC in order to enlarge its operations and desired to expandin new markets. This will have direct effect on current short-term profitability but will have1

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