Performance & Financial Management
15 Pages4001 Words190 Views
Added on 2019-12-03
Performance & Financial Management
Added on 2019-12-03
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PERFORMANCEMANAGEMENT
EXECUTIVE SUMMARYPerformance & financial management covers the management, process, and behavioralaspects of strategy execution, and managing and monitoring performance. Financial decisionsmaking concepts deal with analyzing the organizational issues closely to derive efficient growthaspects for the business unit. Present report deals with seeking effective measures to ensureorganizational performance of KLM plc (Ficticious firm) to attain competitive edge within themarket. As a management accountant of KLM production unit the financial decision are criticaland sensitive as well. Financial decision of the firm demand strong planning and effective analysis of thecurrent business performance and future needs of an organization. This will help the company increating a wide and definite impact on the success of the company. Critical decisions regardingbudgetary control, cost analysis, profit analysis, pricing factors etc. results in developing a firminto a competitive and strong unit. The overall performance of the company is estimated by effective management and usageof organizational funds and resources. The report helps in analyzing the measures associated willanalyzing the performance of the company in order to develop a competitive position within themarket. It evaluated a range of tools and techniques which the organizations adopt in order toenhance business performance to create wide impact in the organizational operations.
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1Techniques to Support Decision Making.........................................................................................1Budgetary control.............................................................................................................................1Issues of CVP...................................................................................................................................3Pricing..............................................................................................................................................5Limiting factors................................................................................................................................6Investment appraisal........................................................................................................................7Balanced scorecard..........................................................................................................................9RISK..............................................................................................................................................11Performance management..............................................................................................................12Financial performance indicators..............................................................................................12Non-financial indicators............................................................................................................12Divisional Performance Management.......................................................................................13Transfer pricing.........................................................................................................................13ILLUSTRATION INDEXIllustration 1: CVP Analysis in given situations..............................................................................4Illustration 2: Balance scorecard......................................................................................................9
INTRODUCTIONA business unit operates within the market by making corrective decisions at right pointof time. These measures helps an organization in creating effective measures fro growth anddevelopment. Financial decisions making concepts deal with analyzing the organizational issuesclosely to derive efficient growth aspects for the business unit. Performance & financialmanagement covers the management, process, and behavioral aspects of strategy execution, andmanaging and monitoring performance. This measures helps the company in developingeffective objectives, goals, targets and strategies using different range of techniques, tools andapproaches.Present report deals with seeking effective measures to ensure organizationalperformance of KLM plc (Ficticious firm) to attain competitive edge within the market. As amanagement accountant of KLM production unit the financial decision are critical and sensitiveas well. The risk associated with these decisions are high and significant. The report will dealwith financial issues that an organization may face to enhance its production level and varioustechniques to deal with the issues as well. Techniques to Support Decision Making Financial decision of KLM demand strong planning and effective analysis of the currentbusiness performance and future needs of an organization. This will help the company increating a wide and definite impact on the success of the company. Critical decisions regardingbudgetary control, cost analysis, profit analysis, pricing factors etc. results in developing a firminto a competitive and strong unit. These decisions are significant for the long term growth andsuccess of a business firm. In order to enhance growth prospects for the company the majordecision that the organization may have to deal with are discussed hence forth. Budgetary controlThe overall performance of the company is estimated by effective management and usageof organizational funds and resources. This method helps the company in effective monitoringand control of funds. A budget is a financial and quantitative statement which is developed inadvance to prepare the organization for analyzing and preparing for the future and upcomingneeds and requirements. This measures helps a company in developing a long term successwithin the business unit. The organization develop budgets for different periods, reasons and1
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