Financial Management Report: Decision-Making Techniques and Factors

This report delves into the realm of financial management, focusing on the evaluation of various techniques, approaches, and factors that contribute to effective decision-making. It explores two key approaches: the knowledge-based approach, which emphasizes the importance of data and understanding in enhancing productivity and optimizing organizational efficiency, and the formal and informal approach, which aims to create a cohesive decision-making plan by eliminating objective biases and considering stakeholder criteria. The report then examines specific techniques, including the T-Chart, used for weighing variables in decision-making, and the decision matrix, which aids in making complex choices by considering multiple factors and specifications. Furthermore, the report identifies crucial factors influencing the decision-making process, such as financial factors, which impact capital structure and expenditures, and social factors, which affect a company's relationships and community engagement. The report concludes with a list of references, including academic journals and books, to support the discussed concepts.

Financial Management

Contents
LO 1............................................................................................................................................................2
1. Evaluation of a range of techniques, approaches and the factors which contribute for effective
decision making.......................................................................................................................................2
REFERENCES............................................................................................................................................4

LO 1
1. Evaluation of a range of techniques, approaches and the factors which contribute for effective
decision making
Approaches which contributes in decision making process in context of the organization:
Knowledge based approach: This approach means understanding knowledge as an approach for
enhancing productivity levels; knowledge suggests a framework for managing and optimizing
organizational efficiency. For a corporation, having a knowledge-based methodology is
important, and as such the decisions made for change also have scientific basis. This is having a
huge effect on the management decision-making process of the organization. Continental
clothing top management may use that method to develop successful decisions based on the
intelligence gathered.
Formal and informal approach: This helps the decision-making process of the company to
create a cohesive plan. This approach eliminates the objective decision-making process and
provides examples of the considerations management decision - making. It seeks to enhance the
opportunity to choose approaches that meet specific stockholder criteria of the organization.
Reasonable options are available which through the complexity associated with the assignments.
The strategy allows for a more rapid reassessment of the conditions, aspirations or target
adjustments of the stakeholders. This lets corporations produce more educated decisions across
all aspects.
Techniques used for decision making process:
T-Chart: The T-Chart methodology is a comprehensive example of the various variables that
must be weighed mostly during decision - making processes. This method could be used to
guarantee that all the positively and negatively factors have been associated with a judgment are
viewed in a list format which can be used to assess the advantages and disadvantages of a
judgment. For example, it is used to analyze two aspects of an entity, occurrence or theory
(Famulska and Rogowska-Rajda, 2018).

Decision matrix: This is not always simple to make the right call for one another within
corporations. Particularly when there is complex packages of specifications and various factors
have to be taken into consideration. Of instance, this ensures that the new Operations support
project isn't quickly finished. While selecting from multiple providers, it has to follow a set of
responsibilities. A full kit known as 'vendor ranking' comes in. In making the right choice,
excessive capital is not only cost and moreover requirements, contract length, support, operation,
experience and training for the workers. The Decision Matrix Analysis is a easy way of ensuring
that all such steps are taken while making the right choice.
Factors which affecting decision making process:
Financial factors: The creation of a strategic move focuses on a firm's capital structure. Hence it
is easy to accommodate the resources and the chance to develop judgments on the expenditures
on the company of this construction cost. Continental clothing company managers analyze these
monetary aspects that influenced the policy taking mechanism and then further influence both
overall efficiency and profitability (Okanazu, 2018).
Social factors: Continental clothing company partnerships with new developed industry,
trustworthy connection with the customer and their organization have a full effect on their life
span in enterprise. To create community engagement in management is important to take socially
encouraging actions.

REFERENCES
Books and Journal
Famulska, T. and Rogowska-Rajda, B., 2018. Principle of vat neutrality and the reverse charge
mechanism. e-Finanse: Financial Internet Quarterly. 14(3). pp.87-97.
Okanazu, O. O., 2018. Financial management decision practices for ensuring business solvency
by small and medium scale enterprises. Acta Oeconomica Universitatis Selye. 7(2).
pp.109-121.