Financial Management: Decision Making and Sustainability

FINANCIAL MANAGEMENT

TABLE OF CONTENTS
TABLE OF CONTENTS................................................................................................................2
INTRODUCTION...........................................................................................................................1
SCENARIO 1..................................................................................................................................1
1. Evaluation of the range of approaches, techniques and factors contributing to effective
decision making in organisation..................................................................................................1
2. Stakeholder management and management of conflicting of the stakeholder groups............3
3. Management accounting techniques in cost control and maximising the shareholder value.. 3
4. Techniques for fraud detection and prevention and approach for ethical decision making....4
SCENARIO 2..................................................................................................................................5
1. Data obtained for making operational and strategic decisions................................................5
2. Investment appraisal techniques and their effectiveness for maximising the returns over
investments..................................................................................................................................6
3. Value of techniques used in financial decision making...........................................................7
4. Financial decision making to support the long term sustainability.........................................7
5. Management accounting for improving the financial sustainability.....................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Financial management refers to managing th financial operation of the business. It is very
important for the business to have a well defined financial structured to be followed by the
organisation. Present report cover the role of business decision making in the financial
management. It will enhance the understanding about the financial management and
effectiveness of decision making for sustainability of business.
SCENARIO 1
1. Evaluation of the range of approaches, techniques and factors contributing to effective
(Covered in PPT)
2. Stakeholder management and management of conflicting of the stakeholder groups.
(Covered in PPT)
3. Management accounting techniques in cost control and maximising the shareholder value.
(Covered in PPT)
4. Techniques for fraud detection and prevention and approach for ethical decision making
(Covered in PPT)
.
SCENARIO 2
1. Data obtained for making operational and strategic decisions.
Data obtained by the company is used for the operational decision making. Analysis
provides about the internal operation of business. They state the financial position in market and
its wealth. The results of the prior decision of the management could be reflected in the financial
statements of the company. Its profitability, liquidity, efficiency and capital structure could be
assessed from the financial statements of company. After analysing the business operation
manages take strategic decisions for improving its performance. Company reframe its strategies
that do not give positive results and also take measures for increasing its operational efficiency.
Comparison of the performance of the business is done with its competitors which provides the
managers about their standing. Managers adopt strategies for increasing their revenues and take
1