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Principles of Financial Management

   

Added on  2023-01-06

19 Pages5519 Words83 Views
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Principles of Financial
Management
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Contents
INTRODUCTION...........................................................................................................................................3
SCENARIO 1.................................................................................................................................................3
1. Evaluation of the range of techniques and factors which are contributing in the decision making of
the organisation.......................................................................................................................................3
2. Stakeholder management and the management of conflicting objectives of different stakeholder
groups......................................................................................................................................................4
3. The value of management accounting techniques in cost control and maximizing stakeholder value. 5
4. Techniques for fraud detection and prevention and the approach to ethical decision making..............6
5. Reflection for the understanding of above questions...........................................................................8
SCENARIO 2.................................................................................................................................................8
1. Identify how data helps to inform operational or strategic decisions for the company........................8
2. Compare and contrast the three investment appraisal techniques......................................................11
3. Demonstrate the value of techniques which helps in financial decision making................................13
4. Analyze that how financial decisions support the long term sustainability........................................14
5. Recommendations regarding the way in which management accountants can help to improve
financial sustainability...........................................................................................................................15
CONCLUSION.............................................................................................................................................15
REFERENCES..............................................................................................................................................17
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INTRODUCTION
Financial management attempts to determine the financial role of the business problem that
leads to the financial planning of the problem. Financial planning is an important component of
the business issue, which contributes to the development of an organization. The organisation is
able to make sound financial decisions through financial accounting. The financial decision will
affect the entire economic operation of the company (Anagnostopoulou and Tsekrekos, 2017).
Because there is a close relationship with various departments of the company, such as ads, sales
personnel, etc. To ensure the organization has enough income to finance its commitments,
financial administrators must control daily operating documents, including such cash receipts
and disbursements. For a longer period of time, the advisor would thoroughly examine when and
when the business will set up a new manufacturing facility. The manager can also propose the
most efficient way of financing the project, gathering the finances and then monitoring the
project's implementation and efficiency.
SCENARIO 1
1. Evaluation of the range of techniques and factors which are contributing in the decision
making of the organisation
For certain companies, successful decision making is very necessary and administrators are
expected to ensure that they use appropriate strategies and methods for much the same reason.
The executive team uses different kinds of them in Tesco and all of them promote successful
decision-making. The following is a list of them:
Brain storming: It is one of the traditional decision-making processes where all team members
work together again and try to assess the role of the organisation in order to decide successful
opportunities to boost it. It is utilized by Tesco executives to examine new ways of achieving
company objectives such that they can consider a response to the organization's problems. It
encourages efficient decision-making since it directs them to decide the measures they should
apply to achieve the organization. It is good for the company since it gives creative approaches
to challenging challenges faced by the organization (Chen, Yang and Zeng, 2018).
SWOT analysis: It is a methodology that is often used by all companies like Tesco in successful
decision-making since staffs are aware of capabilities, vulnerabilities, advantages and market
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