Good Research Paper On Studying Financial Statements To Make Effective Business Decisions
The managers have to take and treat the financial statements as the enlightened medical reports of the companies. The financial statements will educate the managers about different departments’ instrumentality in terms of serving the target needs and wants. The companies have to humanize the process of accounting as well because this measure will allow the managers to know what the consumers are thinking of their financial choices. The managers have to follow the leadership’s manner of Steve Jobs in this regard.
The financial statements have to shed detailed light on the recent developments those a corporate entity has faced over a specific period of time, and often, the companies generate financial literature once in every year. However, the progressive managers at leading companies in the world are known to produce economic and fiscal reports every three months, and with the passage of time, the value of financial statements grew immense because the managers have to use them as a set of tools in order to establish confidence and trust in the stakeholders both internal and external. The managers have to take and treat the financial statements as the enlightened medical reports of the companies.
Realistic Managerial Decision Making
The scientific method of decision making does not allow the concerned person to act on his or her instincts because he or she has to study the dynamics of the situation with great concentration in order to reach an efficient strategic route that the organization can apply in order to change the nature and orientation of the outcomes those their planned efforts will produce in both long and short term scenarios. The top management is going to receive aid and assistance by ascertaining the level of contribution each department is making in order to serve the strategic goals of the overall structure of the corporate ship by studying the financial reports. As the time is passing, the world of accounting and finance is confronting the cloudiness of financial irregularities, and the investors are depriving the organizations from civic ties, and they consider financial reports as irrelevancies in terms of taking investment decisions. The investors are keeping the companies’ ability and power to pay dividends in view, and as long as, the organizations are paying off dividends, the investors are happy to continue the partnership, but once, the stream of money stops flowing then, the investors fly in order to find more lucrative situations to invest in.
In this way, the organizations are having a challenge to create organizational commitment in the investors as well, and for that to happen, they have to shave off extraordinary costs. The product designs have to convey simplicity so that they can entertain the needs and wants of the customers those are necessary only. The fanciness has to die away because the companies have to develop production that does not pose a challenge for both investors’ and customers’ pockets as well.
Balancing the Cost Reduction and Effectiveness
The cost effectiveness has emerged as a dual edged sword recently because the managers have to make a boundless energetic effort in order to balance out the inward and outward flow of the cash so that they can increasingly pay dividends, and as the time is passing, the companies have to remain awake to the fact that investors need more returns, and the customers have a need to buy cheaper products in order to cope with the recessionary affairs of the 21st century’ global economy. The strategic choice that the managers have to make in the given set of circumstances goes by the name of cost leadership in the literature of management. The cost reductive regime is not an only valid strategic path that the companies have to follow because the customers have to buy products with differentiated identity in the market.
Cost Leadership and Differentiation: The Application of BCG Matrix
The followership of cost leadership will partially create the market reality of perfect competition that we cannot have in the realistic world to say the least. The managers have to take in more money, and use managerial controls in order to minimize flows from both substantial ends, and therefore, they have to maintain adequate reserves in their hands in order to sponsor payments of dividends in the future. However, the managers have to come forth in this regard, and they have to render help from BCG Matrix to decide the product lines those have to face discarding as their capability to generate profitability declined considerably.
The managers ought to take the painful decisions of killing unprofitable initiatives so that the concept developers can press on to create novelties so that the customers can have something new and innovative to purchase on a regular basis. The employee creativity and teamwork will organizationally support the creation of entrepreneurial spirit in the companies. The crafting of responsive and dynamic strategy in order to let the creative juices of the human capital flourish is the only sure shot that the managers have at their disposal that can ensure the survival of the companies, and on the other hand, human developmental approach towards organizational growth is a necessary thinking pattern for the management, and the better designed products with efficient production system in the background will collectively allow the companies to realize the strategic goal of investing less and earning more. The managers have to act as if they are in the middle of producing a film that the audience will see in the cinema, and the products have to possess artistic and philosophical dimensions in the recent years so that the customers can witness them fitting in the bigger picture of their lives to say the least.
Management as a Planned Human Behavior: Findings and Analysis
The management sciences are nothing more than the collection of humans’ planned behaviors, and according to Steve Jobs, one has to follow his or her heart in order to claim his or her destiny, and the managers have to integrate the sense of fearless creativity amongst the employees so that they can make the impossible a reality. The managers have to educate themselves about the need to value the inventive ideas those require economic translation, and they have to keep on reminding themselves that they are living in the 21st century, and during these times, the conventionality is eliminating itself because it does not create returns of significant quality to say the least.
The Corporate Miracles: Apple and Amazon
The ideas those worked and operated as miracles in the organizational backgrounds of Apple and Amazon did not appear to be attractive ones to those who were leading the jungle of the companies when both of the featured corporations were childish and amateurish. However, the managers have to drive down the cost of production in order to gain the capability of offering products at a lower price. The companies have to challenge their common image in the public that impresses people to believe that the businesses are there to make money, and therefore, the managers will employ whatever methods they can in order to produce financial returns, and the organizational ethical behavior is a literally notion that scholars profess and discuss in the classroom setting. In this way, the customers are not finding the organizational setups all over the world trustworthy, and the sustained payments of dividends will provide the public with the reason to entrust the companies with their money. At the same time, the application of Corporate Social Responsibility is going to create a favorable image of the organization in the general public. The strategy of distributing happiness and satisfaction amongst people is the only viable method of cultivating responsiveness in the clients.
The Marketing Mix: The Mixture of Logic and Emotion
The humans have the weakness for logic and love, and therefore, they always react to the abovementioned social trends, and the companies have to train themselves in order to integrate both of the attributes to make the notable difference in their destiny. The customers of the 21st century are gaining information and knowledge on a growing basis, and they are not going to buy anything that is not having an iron clad logic in the background of the selling mechanism, and the employees are working with a mental belief that they are making others richer by professionally engaging. The internal stakeholders are growing in terms of value and importance. The managers are knowing the fact that they have to work through the people in order to achieve their goals and objectives, and therefore, the employees have found monetary and nonmonetary rewards in their pockets those the researchers have suggested as methods to induce loyalty in the employees. The work at Apple and Microsoft is enjoyable for the workers. However, the companies cannot find a golden way to cultivate loyalty in the investors, and they will only respond to payment of dividends in isolation, and the availability of money for payouts is dependent on the companies’ sales and the relevant cost structure as well.
Profitability, Sales and Product Design
The profitability is a function of sales, and therefore, the managerial roles of the organizations have to start building the pyramid of organizational strategy by selling the products and services, and therefore, they have to craft and develop a dynamic marketing strategy that should target special interests of the people. The customer relationship department has to run periodic consumer surveys in order to gather required information about consumer preferences. Additionally, the companies have to entertain the product designs those can provide the customers with intrinsic happiness, and in simpler words, the products must appear meaningfully applicable in one’s life, and therefore, the marketers do not have to force the respondents to purchase a specific product, and all they need to do is to link the structure of the offering with the needs of the target audience. The good quality is going to make the job and function of the advertisers easy and simple. The employees have to study the relevant environment in order to identify the difficulties those the consumers are facing during their lives. Once, I was watching a documentary that was about the developmental process of scientific equipment that had a conceptual application to help the people with compromised limbs to walk for the first time in their lives. The lead researcher in this regard exclaimed that his team is more than happy to see the glimpse of happiness when people manage to walk upright for the maiden instance during their entire existence.
Strategic Management: A New Look
The strategic outlooks of the companies have to respond to the needs and wants of the customers, and there is not a single divine word forbidding the companies from revisiting their planning and the managers have to keep a close eye on the demand of the customers, and train the employees in order to serve those modified needs and wants profitably. In psychological terms, the profits are a collection of happiness that the consumers have expected from the use of relevant sold-outs. The companies have to cancel the forceful influence of greed that is causing managers to trap the consumers and investors into keeping the money with the unethical operating systems. The financial statements will educate the managers about different departments’ instrumentality in terms of serving the target needs and wants. The companies have to humanize the process of accounting as well because this measure will allow the managers to know what the consumers are thinking of their financial choices.
The higher gearing ratio is not an issue attached with the development of this paper due to the factuality that the document is discussing strategic nature of finance as an organizational function to say the least, and the managers have to realize their responsibility to build trust within the subjected society. The organizations will not gather the resources those will permit them to meet the needs and wants of the target faction to a fuller extent, and therefore, the organizations have to change on a consistent rate in order to refresh their competitive abilities to entertain the consumer preferences. The change management has emerged as a defining attribute of the world housing corporate effort. The companies have to embrace technological enhancement in order to drive down the costs those they confront while engaging in the practices of business. The financial statements record the results of the strategic choices those the managers make during a specified number of days.
Do not Create Wealth, but Value
The companies do not have to create wealth, and the managers have to fall out of this outdated philosophy because the managers have to work intensively in order to seed trust and reliability in the target sections of the market. The sales and profits will fall down from the skies as consequential structures of the managerial effectiveness from different aspects. The marketers and developers of the products have to work closely in order to make a strategic outcome possible. The financial and accounting irregularities are a failure of management to generate income and return through legitimate organizational means, and therefore, they are using different creativities in order to hide their ineffectiveness regarding performance of their roles and jobs. The product designers are facing competitive pressures, and they have to come up with new offerings in less time. The managers have to pressurize the employees in order to jolt their creativity to aid them in the process of building the new consumers’ attractions, but the results are not that differentiated, and therefore, the companies are facing growing percentage of failures. The managers have to follow the leadership’s manner of Steve Jobs in this regard. He directed his workforce to create, but he never forced them towards the end, and he confessed to be the believer of a philosophy that argues in the favor of the need to consider the transcending as a reward within itself.
The Leadership Behavior of Steve Jobs and Conclusion
The managerial guru without any formal training went on to stand amongst the very best because of his ability to respect creativity in others. Jobs once told the world that they need to learn to treat the employees as the truest source of the competitive advantage, and the world of accounting irregularities have to look back and see a child without any formal educational background change the world in countless ways. Jobs started to consider each of his days as his last on this planet, and eventually, he found his expectation to be true. He was not great, but he had the competency to see the spark in others, and therefore, he inspired others to work with him. The heartily productions of the Apple sold readily in the global market as well.
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