Function of financial management in an organization

 

Describe the purpose and function of financial management in an organization

Scenario

You have been an entry-level financial analyst for six months. Your supervisor, who is about to fill another entry-level financial analyst position on your team, has asked you to create a job aid about the financial analyst role to help the new hire transition smoothly. The job aid needs to describe the responsibilities of a financial analyst, the essential elements of the role, and the impact the role has on a business.

 

Directions

Create a job aid for a new hire to an entry-level financial analyst position. Your job aid should be thorough yet easy for someone new to the field of finance to understand. You are encouraged to use the Project One Financial Analyst Job Aid template in the Supporting Materials section to complete this assignment.

 

Specifically, you must address the following:

 

Financial Analyst Job Aid: In this job aid, you will give a general overview of financial management and its importance to a business.

Financial Responsibilities: Describe the responsibilities of a financial analyst.

In this section, outline the responsibilities a financial analyst has in terms of financial management. Add 5 to 7 specific bullet points outlining these responsibilities, and use complete sentences so that expectations are clear.

Financial Management Decisions: Discuss the importance of using financial management for business decisions, and provide examples to support your claims.

Consider the bullet points you outlined above. How do those responsibilities help to inform management decisions, and what would happen if management didn’t have this information? This should be a brief paragraph with examples.

Accounting Principles: Explain how accounting principles are used to analyze a business’s financial health, and provide examples to support your claims.

Write a brief paragraph that explains accounting principles and how they are used within financial management in relation to analyzing financial health. What accounting information and approaches do financial analysts rely on, and how do they use it? What would happen if that information was not available or was not accurate?

Financial Statements: Describe how financial statements are used to help businesses make finance-related decisions, and provide examples to support your claims.

Consider identifying the information contained in financial statements and what financial analysts would need in order to do their job. What types of finance-related business decisions would this information help to inform? Provide real or fictional examples to help show this.

Financial Terminology: Explain how a financial analyst would use the financial terms in their day-to-day responsibilities in a clear, easy-to-understand way.

Define each term listed below and provide a 1- to 2-sentence explanation of how a financial analyst might use the term, especially when communicating information to management or clients, or when relaying information to inform important decisions:

Financial statement

Liquidity

Working capital

Diversification

Time value of money

What to Submit

Sample Solution

eMarketer (2017) explains in their annual report on e-commerce in Canada that the digital disruption of retail is well underway. The report by eMarketer (2017) suggests that retailers are already feeling the pressures of the amazon effect. It cites the rise of hybrid fulfillment models (such as buying online and collecting in-store) and increased investment in the web experiences of digital properties as evidence of the digital disruption spurred by Amazon (eMarketer, 2017). These initiatives by larger retailers should give pause to SMEs that choose not to adapt their operations. No one is immune to digital disruption, a point made by numerous pundits citing the closures of Blockbuster, Sears and Toys ‘R’ Us as reminders of that lesson.

It is important to remember that behind the well oiled operations of Amazon globally is a commitment to the customer. This commitment has endeared them to Canadians making them the most trusted e-commerce retailer in Canada. In 2018, BrandSpark a market research firm announced that Amazon was ranked first by Canadians in thirteen retail categories. Robert Levy, President of BrandSpark explains that these results are an indicator of which retailers deliver “the most value and best experience to consumers” (Newswire, 2018, p 2). To succeed in categories dominated by Amazon, SMEs will need to embrace this commitment to the customer. Levy explains that retailers “need to stay top-of-mind as their customers move online, and deliver the online browsing experience, selection, value, and service required to be shoppers’ go-to destination in the category” (Newswire, 2018, p 6). The silver lining to Amazon’s success has been that it has left a simple example for SMEs to follow. SMEs should digitize their business operations and focus on the changing needs of customer.

Solution

The digitization of business operations for SMEs should begin with launching a website for their business. A website will enable SMEs to shift their products and services to a new channel to meet the needs of consumers. For SMEs with a website the adoption of e- commerce capabilities is key. This will enable SMEs to appeal to shoppers in Canada and in new markets that prefer to shop online. Of equal importance is the web design of existing websites. A continued commitment to improving the designs and e-commerce capabilities of websites will allow SMEs to mitigate future disruptions that stem from the growth of e- commerce and changing consumer behaviours.

Outline

The objective of this research paper is to help SMEs improve their web operations. The paper will be split into two sections; the first will provide a review of existing literature and the second section will build on this literature to provide recommendations. The first section will explain in further detail the importance of web design in e-commerce. The focus of the literature review will be the discussion of key themes researchers have identified as enablers of e-commerce transactions. These themes include trust, privacy, usability, security and convenience. Other themes related to web design such as heuristics, interactivity and website quality will be explored.

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