Financial Management: Approaches, Techniques, and Stakeholder Management

Financial Management

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
SCENARIO A..................................................................................................................................1
Evaluating range of approaches, factors and techniques which contribute to effective decision
making within company..............................................................................................................1
Stakeholder management and the management of conflicting objectives of various stakeholder
groups..........................................................................................................................................3
Examining value of management accounting techniques in cost control and maximising
shareholder value........................................................................................................................3
Evaluating methods for fraud detection and prevention and appropriate approach to ethical
decision making..........................................................................................................................4
Reflection....................................................................................................................................5
SCENARIO B..................................................................................................................................6
Identifying and evaluating the data collected of AstraZeneca Company...................................6
Different type of investments appraisal techniques....................................................................8
Demonstrating the value of techniques for appropriate decision making...................................9
Evaluating how financial decision making helps in supporting long term sustainability.........10
Effective recommendations for how management accountant helps to improving financial
sustainability.............................................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Financial management is considered to be as an appropriate mean which is very useful in
carrying out a plan, giving direction, controlling and effectively monitoring the various range of
financial activities to effectively utilize the funds of an enterprise (Mien and Thao, 2015, July). It
helps in managing the portfolio of the company and raising capital for effective functioning of
the organization. This study is very useful as it helps in effectively evaluating the various formal
and informal approaches which are effectively used to support decision making. Moreover, this
study also tends to focus on exploring the key financial management principles which has been
effectively used in order to support financial strategies. Subsequently, this study tends to focus
on evaluating the role of management accountants and also examine the use of accounting
control system. Moreover, this study is very significant as it helps in effectively evaluating
various set of ways which in turn are prominent for financial decision making and it also helps in
supporting sustainable performance.
AstraZeneca is considered to be as a multinational biopharmaceutical and pharmaceutical
organization which was founded on 6th April 1999. It is headquartered in Cambridge, England,
UK. It mainly deals in pharmaceutical products.
SCENARIO A
Evaluating range of approaches, factors and techniques which contribute to effective decision
making within company.
The financial decision making is one of the most prominent measure with the management
of the organisation and are responsible for taking appropriate decision associated with
stakeholder’s equity, liabilities of the company and insurance of bonds (Martin, 2016). Decision
making within the financial management is mainly related with the financial details, asset
management and investment in order to attain higher degree of goals and objectives of the
company.
Formal Decision making is associated with appropriate structure, process and system.
Formal decision a very useful for the organisation because it outside increase in the overall
efficiency and attaining economics of scale (Zietlow and et.al., 2018). On the contrary, informal
decision organisational structure where there is no chain of command. Informal decision-making
is based on unwritten rules and it’s taken by considering relationship with the employers and
employees within organisation.
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Investment decision: Investment decision is mainly associated with where the capital of
the company must be invested in order to gain higher degree of profitability. It means that the
investment should be made in those assets and projects where the returns generated are higher
when compared with acceptable returns.
Financial decision: Financial decision is another crucial decision which has been made by
the financial management of the organisation which relates to the financing mix of the company
(Petty and et.al., 2015). It is my mainly associated with allocation of funds and borrowing which
helps in maximising the value of the investment which has been made by the organisation.
Dividend decision: Dividend decision is another decision which has been made by the
financial manager of the company which is mainly associated with the pay-out to the
shareholders. It is very useful in determining quantum of profits. Dividend decision is very
useful because the Retention of property and distribution policies of the organisation tends to
have significant effect on the wealth of the company.
Factors associated with decision making are:
There are range of significant factors which eventually contributes to the decision making
process which mainly includes range of cognitive bias, past experience, policies, laws,
perception, social factors, competitive factors, sunk outcomes, environmental factors,
behavioural factors, etc. which in turn largely results in high degree of decision making.
Key techniques associated with decision-making are:
The key techniques associated with decision-making within the organisation or
brainstorming, marginal analysis, cost benefit analysis, financial analysis, ratio analysis,
financial analysis, Pareto analysis and Delphi technique.
Brainstorming
Brainstorming decision making technique is very useful because it is designed to improve
the range of ideas which are highly available for the organisation to explore (Renz, 2016). It is
very useful in generating new ideas in order to solve range of problems.
Cost benefit analysis
Cost benefit analysis is very useful for the decision making process because it is one of
the most systematic approach which is very useful in evaluating the strength and weakness of
alternative set of ideas in order to provide the best possible approach to attain better set of results
and outcomes for the company.
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