Critically evaluate approaches to planning, control, performance management and financial decision making.
6. Apply appropriate analytical techniques for planning, control and financial decision making to familiar and unfamiliar situations.
In the executive summary of CIMA’s recent study of the role of the finance function based on data collected from more than 4000 finance and senior managers worldwide, it is stated that
“the finance function and its members constitute a force for further development of the management support role. Implementing this change will be dependent on identifying and developing the appropriate personnel and demonstrating to business managers what and how the finance function can contribute to the organisation”.
(source: “Finance and organisational performance: shaping the future”. Chartered Institute of Management Accountants (CIMA) https://secure.cimaglobal.com/Thought-leadership/Research-topics/Finance-transformation/Finance-and-organisational-performance-shaping-the-future/)
Using relevant theoretical and empirical literatures, critically discuss the above statement. You discussion is expected to cover the following:
a) an assessment of the traditional roles of the finance function; (200 words)
b) an evaluation of the financial and non-financial challenges that have directly affected the finance function as a result of globalisation; (300 words)
c) how the finance function has tried to adapt to the challenges in order to serve management better; (1000 words)
d) working capital calculations and explanation for an organisation of your choice to illustrate how the finance function can support management. (500 words)
Total 2,000 words maximum