Financial Management: Approaches, Techniques, and Stakeholder Management

Financial Management

TABLE OF CONTENTS
INTRODUCTION......................................................................................................................3
Scenario A..................................................................................................................................3
1. Range of approaches, techniques and factor contributing to effective decision making...3
2. Stakeholder management and conflicting objective of different stakeholder....................4
3. Value of management accounting techniques....................................................................5
4. Techniques for fraud detection and prevention and approach to ethical decision making 5
5. Reflection...........................................................................................................................6
Scenario B..................................................................................................................................6
Financial ratios analysis of Morrison Supermarkets PLC for the year 2020, 2019 & 2018. .6
Application of data obtained in decision making.................................................................13
Outcomes of investment appraisal techniques utilized in taking actions to maximise ROI 14
Value of the techniques that is used in informed decision making......................................15
Long term sustainability through financial decision making...............................................15
Recommendations to improve financial sustainability........................................................15
CONCLUSION........................................................................................................................16
REFERENCES.........................................................................................................................17

INTRODUCTION
Financial management is the main function of every business organization. It refers to
the implementation of various principles of management for effectively managing the
financial resources of the company. In this report, the various aspects of financial
management are discussed in respect to decision making which helps in attaining sustainable
growth. The ratio analysis of Morrisons plc is carried out to know its financial position and
performance.
Scenario A
1. Range of approaches, techniques and factor contributing to effective decision making
There are many different types of approaches, techniques and factor which used to
contribute very adversely in making variety of the different type of the decision in the
organization. Some of the techniques approaches and factors of decision making are as
follows:
Approaches of Decision making
Formal Decision making: It is the type of decision making approach which is
generally followed by the company in taking variety of the decision in the organization. This
is the type of the decision making process in which all the responsible authority and allotted
with different responsibility and on the basis of the same different decision are being taken in
the organization. This approach generally follows a chain of process before making any
decision in the organization (Finkler, Smith and Calabrese, 2018).
Informal Decision making: This is the type of the decision making approach in firm,
in which there is no change of the process which are being followed in the organization to
make any of the decision at workplace. Different decisions are generally taken in the
organization in the participatory manner, in which generally all employees are involved in
decision making.
Different Technique of Decision making
Brainstorming: This is a type of the technique in which different decision in the
organization are taken on the basis of brainstorming management team to make variety of
different decision in an organization. It is technique of decision making in which all the
employee generally used to sit together and discuss variety of the decision in the organization
and finalize variety of the decision in company.
Cost Benefit Analysis: Cost benefit is another technique of decision making in which
company generally used to consider cost behind making variety of the decision and also used
to look at the benefit of making decision. On the basis of the same different decision are
being made at workplace. In this cost of implementing the decision and looking at the future
benefit of the decision are compared and on the basis of the same it used to decide whether
the decision which organization is looking to make is viable or not for the organization.
Different Factors contributing toward decision making

Perception issue: It is the first factor which is consider by the organization, this
factor generally used to impact the process of decision making in the organization. As all the
people in the nation used to has different perception, thinking power and all the individual
used to has different ability to carry out different performance. As a result these is certainly
consider by all the organization before making any decision in the organization (Chandra,
2017).
Policies and Procedure: It is another important factor which is generally consider by
different firms at the time of making different decision in the organization. As all
organization generally used to look at the process which is simple in the nature, as
organization generally find it hard to make a rigid decision that easily in the organization.
Hence, different procedures which are followed in the organization used to impact efficiency
of variety of the different decision which is being taken in the organization.
2. Stakeholder management and conflicting objective of different stakeholder
Stakeholder management is the process in the organization in which organization used
to look to manage the good sort of the relationship with the variety of stakeholder of the
company. This process generally looks to involve the systematic review of different need and
requirement of different stakeholder and organization look to meet the different need of the
stakeholder in efficient ways in the organization. Stakeholder are generally defines as a
different parties in the organization who generally used to has a good sort of the interest in
the variety of the different operation of the business which are being carried out in the
organization (Candee and et.al., 2018). Generally all the stakeholder in the organization used
to has the different need and preference in the organization. As a result all the organization
used to take the different decision so that the need of different stakeholder can be maintain
very easily in the market. Main reason behind the same is identified that as company grows in
the size need and preference of different stakeholder are automatically fulfilled in the market.
So, it generally means that good stakeholder management system in the organization used to
help the stakeholder of the company to make different interested parties happy and satisfied
in the market. There are many different type of stakeholder which generally used to dealt in
the organization. There are two category of stakeholder i.e. internal stakeholder and external
stakeholder in organization. Internal stakeholder are the one in the organization who used to
operate from internal management of the organization i.e. senior management, employee and
management team. At the same time external stakeholder are the one in the organization who
used to operate from external environment, example are competitor and consumer in the
market.
All the stakeholder generally used to has a different sort of the interest in the
operation, these eventually used to create the situation in the organization to understand the
need of the different stakeholder and on the basis of the same different stakeholder plan are
generally made in the organization and on the basis of the same different organization used to
plan variety of different activity in the organization (Barr, and McClellan, 2018). Conflict
objective of different organization used to create many type of complicacies in the
organization. As a result organization generally used to focuses on different goals of the
business in the long run. To manage the objective of all the stakeholder in the organization,
all the organization generally look to present their objective in front of different stakeholder
in the way that they used to find the decision of the organization in a good manner these
generally help the company in getting the support of stakeholder and also help the company
in managing the interest of all the stakeholder in the long run (Alam, 2018).