Financial Management Report: Decision-Making and Strategies

This report delves into the core principles of financial management, examining both formal and informal approaches to decision-making. It analyzes the advantages and disadvantages of each, providing insights into their application within organizations. The report further explores key financial management principles essential for achieving long-term financial sustainability, emphasizing the role of management accountants and accounting control systems in fostering ethical financial practices. It evaluates how financial decision-making supports sustainable performance, providing a comprehensive overview of financial strategies and their impact on organizational success. The report includes practical examples, such as scenario A focusing on value management accounting and scenario B discussing Tesco Plc's annual report, investment appraisal techniques, and ratio analysis.

FINANCIAL MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
LO1. Apply different approaches used to support effective decision-making................................4
P1 Apply different formal and informal approaches used to support effective decision-making
.....................................................................................................................................................4
M1. Analyze formal and informal approaches applied to support decision-making addressing
both advantages and disadvantages.............................................................................................6
LO2. Analyze financial management principles which are used to support effective financial
strategies..........................................................................................................................................8
P2. Analyze the key financial management principles required by organizations to achieve
effective financial strategies for long term financial sustainability.............................................8
M2. Critically analyze the key financial management principles and their importance in
delivering effective financial strategies for long term financial sustainability..........................10
LO3. Evaluate the role of management accountants and accounting control systems..................11
P3. Evaluate the role of management accountants and their value as part of an integrated
system........................................................................................................................................11
P4. Evaluate the use of accounting control systems and their value as part of an integrated
business system..........................................................................................................................12
M3. Critically evaluate the role of management accountants and accounting control systems to
support a culture of ethical financial management....................................................................13
LO4. Evaluate ways in which financial decision-making supports sustainable performance.......14
P5. Evaluate the ways in which financial decision-making is important for supporting long
term financial sustainability.......................................................................................................14
M4. Critically evaluate how different ways of financial decision-making support long-term
financial sustainability...............................................................................................................15
CONCLUSION..............................................................................................................................17

REFERENCES..............................................................................................................................18

INTRODUCTION
Every business activity is directly or indirectly related to finance. Financial aspects are involved
in production, marketing, purchasing etc. Problems of finance are closely related to problems of
purchasing, production and marketing. Thus the problems of finance are inherent in some form
of activities of all departments. Financial management encompasses all activities that affect
future fund flow volume and time-related decisions. Finance, between production and marketing,
performs the same function as oil content in running a machine. There are some aspects in
production and marketing decisions that do not come in the field of financial management,
although they affect in finance.
This project report consists of two scenario’s; A and B. In which scenario A; consists of value
management accounting concept and techniques of management accounting for decision making
process and performance maximization for sustainable growth. The other scenario consist of
discussion on the annual report of Tesco Plc and additional to this various investment appraisal
techniques and ratio analysis for the company has been done in this report. The long investment
method provides the local council with the equipment to help determine options for methods,
groups and other diversionary issues using conventional understanding as it is.
The methodology better informs the Council when considering various organized options that
affect organizations, such as a reasonably long housing approach, a centralized vehicle and a
stimulus from the available funds left. It guarantees that the components, for example, the effect
of the cost / comfort level on the resident, the risk and the levels of consistency and the
motivating forces for the money will be considered determinants of these choices.

LO1. Apply different approaches used to support effective decision-
making
Decision-making is an integral part of the current administration. Fundamentally, rational or
sustainable dynamics are considered the essential ability of managers. Each boss makes hundreds
and many choices subliminally or deliberately making it a key part of an administrator's job. The
choices take on important roles as they decide both authoritative and administrative exercises.
Choice can be defined as a deliberately studied strategy with many options to achieve
classification or administrative goals or objectives. The dynamic approach is an inevitable and
essential part of the management of any society or business. The choices are made to continue
the exercises of the commercial centers and their authoritative work.
P1 Apply different formal and informal approaches used to support effective
decision-making
Some of the informal approaches are given below:
Structure: Each special unit is led by its own pioneer, who is, in principle, better prepared to
understand the needs and problems of that particular unit. This takes into account a regulatory
intelligence union of the user where the official level gets exactly the most important information
for targeting and the board. This highlights the content of the classification exercises and simply
feeds the results of the specifications that will make the stool pass to the officers and the
administrative team.
Develop the structures of physical experts to release dynamic evolution. The implementation of
the factory membership chart involves a number of important forces that start with the boss, the
CEO and the other authoritarian of Tesco Plc at the top while official officials set goals and
affects the society. Head positions below the official level are responsible for achieving these
goals in their areas of responsibility or departments, which are resolved by sufficient progress in
management information.
A multilateral structure that separates the capabilities of offices in specific workplaces allows
supervisors in those offices to oversee issues and bring methodological and editorial efficiencies

into their workplaces. It also reflects the degree of business organization in which data about
efforts are made, tried and somewhat set aside for future office activity, in the same open way as
those in more senior administration higher than the blame for unlocking a major campaign.
Processes: The suggested methods are simple. More fully, they can delegate - and only
collectively - collect collections of commissions and activities that change commitments. Within
companies, these sources and information products can be monitored as resources, information
and people. Typical application scenarios include new product development, performance
application and customer support; Investors are very nice, but in addition they are equal in terms
of property and vitality.
Systems: Supervisors should quickly obtain information to make decisions on key issues
identified by revenue, transparency, and activities. The associations collect a collection of
information models, including customer records, process data, fact search, cash accounting
records, information collection and warehouse data and individual property records. Nonetheless,
most of this data is eliminated from office problems, which makes it difficult for pioneers to get
the data quickly.
The audit data framework improves and accelerates information management by placing the data
in an open and solitary position with the framework. The result is a quick and general guide to
the political decision.
Informal approach:
Some of the informal approaches have been given below:
Connections: When two people enter into a relationship, the amount of decisions they should
make regarding their killing is essentially due to the approach of their respective decision-
making dissolution circles. This is not based on how these decisions are to be made together, but
necessarily because you see someone who influences the other person on all the decisions you
make or - dependent. In order to maintain a reasonable relationship, all facilitators should think
about its performance in any case. Whether you choose options together or consider each other in
your individual decisions, there is usually very little to do alone.

However, the extent to which your circle of two decisions depends entirely on you and your
presentation, and is one of a kind for each couple. However, the more options a couple can share
or give the better. If a couple of supporters choose irregular and irregular decisions, then once in
a while, the relationship will last.
Systems: The dynamic approach to introducing new antibodies into national immunization
programs is often surprising, involving several members who provide clear information, set a
record and include compiling information, taking action and increasing political assistance.
Members can have a variety of levels of information, data and motivation to understand new
approaches. If it does not seem necessary, the estimate of general wealth or the ability to present
a system selected for Unilever can dilute procedural decisions.
Efforts to empower powerful people across the country have largely focused on building gains
worldwide and informing delegates about the approach. Less attention has been given to the
cooperative energy of the characters on the screen and to how the whole flow of emotions
influences the dynamic approach and technique.
Unwritten instructions: politics, nonviolence and favors influence the dynamic process. In the
best case, societies executed 75% of their decisions and 25% on associations and government
affairs. Many people influence decisions and, from time to time, authoritative matters are the
best. Strive not to accept that someone's position means that person has power.
M1. Analyze formal and informal approaches applied to support decision-
making addressing both advantages and disadvantages
Advantages of formal approach to support decision making:
The main advantage of a formal approach over an informal approach to decision-making
practices is that it reduces the competitive vitality that is essential for all majority management
systems. A formal agreement protects all inclusive interests through comprehensive, open and
direct means that urge constructive goals to fight, rather than a strong conflict to maximize votes
realization. The expected long-term structure and formal approval allow for simpler investments,
even by those members who may feel reduced or damaged.

In addition, the formal decision stipulates that once an offer has been recognized, it has been
modified to meet the needs of everyone in a company. Of course, every recognized proposal is
with the help of the whole society and every difference is now open information. This type of
dynamic approach deals with the faster and more efficient execution of some random proposals.
Disadvantages:
A disadvantage of the formal decision-making approach is that support requires a deep and
standard understanding of the basic understandings that structure the structure and the approach
by which choices are made. are made. Because of this need, newcomers may find it difficult to
enter and become interested in mainstream society.
Informal Approach:
Advantages of Informal approach
1. Quick result:
The accommodating structure does not follow a divisive chain, so the spread of the letters can be
faster.
2. Meeting social needs:
Easy communication gives proper weight to the mental and social needs of the staff who are
freeing agents.
3. Correct comments:
Through a simple structure, senior managers can learn authenticated employee analyzes of
various systems and plans.
The informal approach can be used to obtain benefits in the best possible relationship by
following the path:
• Data on accommodating social relationships can be used to gather employee support and
improve their inclusion.
• Through the screw you can quickly provide great information.

• By supporting easy events, the boss can abuse formal and easy connections.
Disadvantages of Informal association:
1. Spread the word:
According to a study, 70% of the information disseminated through an advanced dynamic
structure is fragmentation of chatter that can deceive employees.
2. No systematic operation:
The easygoing structure does not model a structure for the proper operation of a relationship.
3. It can have negative results:
In the event that a stay bond restricts officer procedures and changes, then enforcing them in a
relationship becomes difficult.
4. More emphasis on the interest of individuals:
The accommodation structure provides greater satisfaction with individual arousal satisfaction
when expressed differently with respect to several leveled interests.
LO2. Analyze financial management principles which are used to support
effective financial strategies
P2. Analyze the key financial management principles required by
organizations to achieve effective financial strategies for long term financial
sustainability
Financial Stability definition: Financial stability is a state in which the money framework, such
as the major money markets and the institutional framework of intangible cash for cash stunts, is
appropriate to easily meet the necessary capacities: budget asset fund entomb intervention, risk
board and compensation plan.

Financial stability is one of the most common issues of modern financial writing. The
importance of the financial soundness tests was first seen during a universal budget crisis in the
late 1990s, similarly reinforced by the development of the 2007 financial and financial crisis.
These contributions include an obligation to advance the expert evaluation through investigation
and concrete image of the state of the budget department of a particular nation. As a result of
shared relationships of trust - which govern understanding at both the simple and even the level -
the tests must cover the entire inter-currency framework.
Financial management principles required by organizations to achieve effective financial
strategies for long term financial sustainability:
Financial sustainability standards have been defined as a direct consideration against which to
focus financial practices and choices. The number of sensitive staff presidents is thought to rely
solely on human resources agreements or ideas to build their business, and generally has no idea
where they are or where they are going.
While agents will immediately clarify their commitment - working for them, fulfilling the jobs of
individuals, satisfying a need in the mall - you will not go far without the hard and practical
benefits of development. Some of the standards include:
1. STRATEGIC PLAN AND CORPORATE PRIORITIES
The disposition of life is a management tool. It is used to allow the audience to become a
character of the future - to bring together the essentials and help people in the audience move
towards similar goals. The company's approach changes the course of the general public as
changing circumstances.
Negotiating life is a limited effort to support key decisions and activities that shape and guide
what an audience is, what it does and why it does, with an emphasis on where it should go and
how to get there.
2. PROVIDE SERVICES IN AN EFFICIENT MANNER
In the thriving outlook on Internet-based life, customer support needs must be met through
relevant communications and must be made quickly. 42% of customers hope to receive a

response via the online media system within an hour. To make you think about how this happens
from time to time, most associations on Twitter basically respond to this request for every day.
3. PROVIDE SERVICES AT AN EQUITABLE (FAIR) AMOUNT
With information that offers attention and updated letters to executive collections, we maintain
quality collections before or after peak periods twice a year. Nearby, by dividing the problems
and framing the peak hours, a quality manual is used and sanctioned to guarantee quality control.
For return speculators, our basic approach is to pay for stable and reliable benefits, considering
internal and external evaluation of company performance and working conditions. At a critical
level, the net income level is set at 30% or more.
4. WITH KEY STAKEHOLDERS
Participants can influence the outcome of the fight as they will have normal access to the
necessary data and results. Whether it causes recognition of the features of the cross or support
for an even more subsidized offer, members influence the viability of any activity or fight.
Participants can represent the members of your society, corporate leaders or combat pioneers,
group leaders, crusader supporters, ambassadors and finalists of what you expect from a job.
M2. Critically analyze the key financial management principles and their
importance in delivering effective financial strategies for long term financial
sustainability
Long-term financial stability methods are used as rational practices and techniques that are used
to achieve a specific purpose or that can be prudent and guarantee the security of a currency
against the currency world. The current monetary frameworks are strengthened and provided in
the structure and used as a positive outlook in currency development. In addition, significant
financial aid and reflection measures are applied to the Council's financial procedures.
In any case, an adequate expenditure financing process is needed. Since there are some methods
for budget negotiation, a collaborative approach will help determine which strategies should be
undertaken and first reclassify to address problems and assist in problem analysis. The
methodology includes scenarios of gas production and long-term consumption to consider the

elements that will subsequently be identified with real money and the potential withdrawal
opportunities. found. The theories and scenarios generated, characterized by the achievement of
key results, control the specific angles that should be made and further updated. . In addition, the
method acts as a clock to isolate and address changing requirements and conditions, new issues
and potential risks and their impact on gases, plans, methodology and practices. . When a model
of the method is complete, the framework will be examined to validate changes in standards,
systems and strategies, where appropriate.
The withdrawal of the financial support structure was made to reflect future spending limits
through its measures, strategies and strategy. Use of the framework controls the organization in
determining important options that help understand the goals and objectives of the retreat. The
creation of the structure faces an important development in establishing the financial capacity of
the financial plan, to help reach the key agreement.
LO3. Evaluate the role of management accountants and accounting
control systems
P3. Evaluate the role of management accountants and their value as part of an
integrated system
The role of the management accountant is to take the actions to ensure the safety of his
association's spending plan, manage all financial problems and, in this regard, assist in the look
at organization and general method of organization.
The main body of accountants is the key person in determining the status and performance of an
association. Some choose to turn to a qualified management accountant (CMA), a capability
such as a CPA, however with a gradual focus on cost accounting, cash association and board of
director’s issues.
Job duties can usually be fulfilled. Depending on the society, your level of experience, the season
and the type of activity, you could fulfill one of the commissions that come out of it:
• Design