Financial management is one such vital factor. A company requires finance not just to start a business but also to operate a business, to expand its operations and to modernise it. Therefore it can be said for sure that…
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Managers believe that finance promotes a better understanding among departments and assist them to achieve corporate strategy (Shim & Siegel, 2008, p.5-7).
There are different tools through which the management analyses the efficiency of their financial management strategy. Few of the commonly used tools are ratio analysis, budget forecasting and analysing, net future cash flow though NPV. Management also uses certain specific tools to determine the profitability and the rate of return through tools like IRR, ROI and profitability index. Any problem existing in the financial policy followed by the company can lead to a major problem in future. Therefore the financial department should analyse the efficiency of these policies on a periodic basis and should update them to cope up with changing market scenario.
British Airways is a full service providing global airline that offers low fare routes throughout the year. The airline has an extensive network almost all over the world and connects all the vital destinations. The huge fleet size, large number of international flights and dense networking makes British Airways the largest airline in UK. At present the company has it’s headquarter at London Gatwick Airport as well as London Heathrow Airport. The airline service provided by the company connects more than 150 destinations through 248 aircrafts. However increased competition in airline industry, fluctuation in crude oil prices and collapse of the world economy has lead to the lowering of its passenger base. This downfall is also affecting the revenue as well as market image of the company. To have a better understanding of the efficiency with which BA manages its finance, an in-depth analysis of the company’s financials was done. On basis of this analysis certain vital factors related to the company are discussed below.
After analysing the annual cash flow statement of the
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The most important element for any business is the availability of the funds and finance. Almost all organisations make sure that they have the required funds in order to run the operations of the business in effective and efficient manner. Main issue in the starting of any business or organisation is to search for appropriate source of finance in order to make sure that the start-up funds are available (Johnson, & Scholes 2001).
By using the credit policy, an organisation sells its goods on credit to the customers. And after a certain period of time, the customers are required to pay back the credit amount to the organisation. But, sometimes, there are certain customers who are either unwilling to pay back money to the organisation.
It was found that he could not get more than 50% finance from the bank. Then the promoter had to search for different kind of private investor. Among these the venture capitalists and the angel investors are found as the best persons to approach. After considering all the factors the promoter has chosen to approach an angel investor, which is easily available in United Kingdom.
Task 2 (The Initial Costs): It would require about 50,000 pounds to start the business. The capital required for setting up this organization may be sourced from either banks or the sale of personal assets. Though the sale of personal assets
It is assumed that all the costs (£ 250 million) will be incurred in the first year of operations. Hence it is necessary to identify suitable sources of finance available to JS and co so that the investment can be made effectively.
JS and Co
One of its biggest brands is Nike which is a globally recognized brand in the sports products manufacturing. Now it has 6 different markets in the Middle East and has more than 50 brands and having its head office in many
There is always a tendency of expenses increasing and this is why the organization needs to have a financial plan so as to manage unexpected expenses and emergencies such as unexpected increases in operational costs. However, the most important part of financial
The barber shop attends three customers per hour and the working time is six hours a day. Thus the shop attends 18 customers a day and within which 50% is children that means 9 are children. Number of working days in a month
She already has 200000 pounds and needs to get 600000 pounds through sources of long term and short term finance. We need to analyze different sources of finances that can eb taken to consideration for bearing the
The business seeks to enhance customer satisfaction by offering many ways in which our customers can place their orders to suit their convenience.
Our flower shop is located in London, which is a prime location for this type of business. The
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