Essay on Financial Management of Thomas Cook Group
Added on 2020-07-23
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Financial Management
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1P1: Different types of formal and informal approaches used in decision-making......................1P2: Key financial principles use in financial strategies making.................................................3P3: Role of management accountant...........................................................................................4P4: Evaluating use of accounting control system and their value in internal department..........5TASK 2............................................................................................................................................7P5: Evaluating ways in which financial decision making is significant for long term....................8CONCLUSION..............................................................................................................................10REFERENCES..............................................................................................................................11
INTRODUCTIONFinance is an essential aspects which is consider as life blood of an organisation. It isused to manage and operate all important operations those are incurred during the period of time.Without having proper flow of capital they are not able earn maximum profit during the periodof time. The primary objective of financial is to manage all necessary requirements which areessential for increase profitability for an organisation. It would guide for the internal investmentsand financing firms and not being able to operate resources in effective manner (Brigham andHouston, 2012). This project report provide crucial information about various formal and informal methodof decision-making. Understanding of key management principles use to enhance financialsustainability for an organization. Crucial role of accountants and control systems are discussunder this report. At the last, different ways to support financial decision-making. All thisinformation are analyse effectively in order to attain overall aims and objectives for anorganisation. TASK 1P1: Different types of formal and informal approaches used in decision-makingFinancial management has emerged as utmost important and interesting areas foracademic studies as well as for examine practice finance managers. It included various aspectsthose are based on effective decisions which are being made by an organisation during the periodof time. In general manner, understanding of finance realize as capital. While in real sense thisterms is study of money and their vital flow to operate a new businesses in more effectivemanner. Finance is the study of amount and their essential supply. It is the process by whichraising of income and proper allocation of all resources on the basis of financial requirements ofthe businesses is done. Whereas, management means effective planning, organising andanalysing every human activities in order to attain desire aims and objectives. They are heldresponsible for regulating overall administration and management of money and their properflow in the department (Chandra, 2011). It has been seen that are two important sources ofdecision making. Some of them are discuss underneath:Formal: It refers to a particular organisation structure that is formularise relationshipamong members of Thomas cook Group Plc and the processes by which they get interacted to1
form an effective environment. In recent time people become more aware of all risks those areassociated with the technology that has placed plenty of responsibility for evaluatingperformance of an organisation. There are certain formal methods those are uses by departmentare discussed underneath:One-on-one meetings: This seems to be an effective process of formal method underwhich two parties get involve to exchange their important informations. It saves time aswell as costs that can reduce certain burden on an organisation.Department meetings: It is said to be one of the important sections in an organisation. Itis organise by company to analyse problems of every departments to examine theirsignificant issues associated with them (Renz and Herman, 2016). Regular status reports on project: It is an important document that is used by projectmanagers as formal reporting on status of a project to steering committee. It consist ofcrucial members such as senior manager or various stakeholders. Informal: The functionality of institutions would to be assured to wide extent bydevelopment of parallel system of informal regulations and process for making effectivedecision-making. It is known as reliable person of existing support network to analyse internalperformance as well as determining skills of an organisation. Popping by an employees desk at the workplace: It is said to be an essential aspectswhich is related with getting information through popping at any employees desk. Thiswill distract other from their work.Informal meeting: It is said to be important meeting which is far less important plannedand regulate or crucial as comparison to formal meeting. The primary feature of thismeeting which is unplanned. The management can anytime asked to organise meeting inorder to take crucial decision for the purpose of increase growth and sustainability forThomas cook Group Plc (Molina and Preve, 2012). There are various factors those are affecting an effective decision makingCertainty: Decision are taken under various critical situation of certainty in casemanager has sufficient data to know the outcomes for Thomas cook Group Plc. The role ofmanager is to determine the available alternatives as well as conditions those are required at thetime of making any crucial decision.2
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