SF001: Multiple Perspectives on Financial Management
SF001: Multiple Perspectives on Financial Management
SF001: Multiple Perspectives on Financial Management
Short Answer Submission Form
Your Name: Shericia Cobia
Your E-Mail Address: shericia.cobia1@waldenu.edu
Instructions
This Competency includes a Short-Answer Response Assessment. Write your response to each prompt below in the space provided. The Rubric, which will be used by the Competency Assessor to evaluate your responses, is beneath the prompts. Carefully review the Rubric rows associated with each prompt to provide a complete response.
When writing your response, begin typing where it reads “Enter Your Response Here.” Write as much as needed to satisfy the requirements of the prompt (as defined in the Rubric). Be sure to support your responses with connections to professional sources. SF001: Multiple Perspectives on Financial Management
Your Assessment responses require references (in APA style) to support your thinking. You will list your references at the end of this template where “References” are noted. If you need additional information regarding how to correctly cite, and/or reference sources, please visit the Walden Writing Center at http://academicguides.waldenu.edu/writingcenter/apa/citations
To learn more about effective paraphrasing strategies, visit the Walden Writing Center at http://academicguides.waldenu.edu/writingcenter/evidence/paraphrase/effective
SF001: Multiple Perspectives on Financial Management
Review the following example item and response for a sample that meets expectations.
| Sample Prompt: |
Prompt 1
The Role of Financial Management
Scenario
ABC Underwriters is a publicly traded reinsurance firm. The board of directors recently replaced the chief executive officer and some of her top managers after a lengthy dispute over the integrity of the company’s financial filings. You are being considered for the new chief financial officer role, and as part of the selection process, the board has asked you to explain your views on the role of financial management in promoting a company’s overall success.
- Write a concise but comprehensive response as to what you would say that clearly identifies the broader responsibilities of financial management within a company and connects them to the activities of company management in general and to the interests of shareholders. Be sure to describe the main goals and contributions of financial management, identify the goals and interests of shareholders, and describe the relationship between short- and long-term financial goals and shareholder value in your response. (3–4 paragraphs) SF001: Multiple Perspectives on Financial Management
Your Response
Financial management deals with the practical meaning of financial numbers within an organization. Some of the major responsibilities of financial management include management of economic activities, evaluation, and disclosure (Hart & Zingales, 2017). These are activities which are critical to the general success of a company. It creates organizational agility and value through resource allocation among competing opportunities. Within an organization, it is the responsibility of the management to allocate resources which are limited to several competing opportunities. Financial management aid the activities of the company management through resource allocation in a process called budgeting.
Financial management also helps the company management in monitoring and implementing business strategies and also help attain these business objectives. Financial managers conduct data analysis, and from the analysis, they advise the senior managers on ideas to maximize profits. They create plans and strategies for the company’s long-term financial goals. Generally, they act as advisory to the company’s top executives.
In a company, the goals and interests of the shareholders are to maximize the value of the company, to minimize risk and to increase shareholder wealth (Morden, 2016). Companies exist to provide services and goods, and in return to generate net income and revenue. The net income that is gained is the passed to the shareholders through distributions, dividends, or by selling the stock of the shareholders to an entity or back to the company. Some shareholders aim at long term gains while others aim at short term gains. Both of these categories of shareholders aim at increasing the value of the company to increase their stake value in the business. Shareholders also aim at minimizing risk, and they seek out businesses that portray minimal risk for financial loss. If a company is unable to ensure shareholder profits and to lower risk, the shareholders are likely to divest from the company. Financial It does this by creating ideas to increase the value of the company and by paying dividends. A company delivers value to its shareholder because of its management’s ability to increase free cash flow, earnings and sales over time resulting in increased dividends over time. Financial management aids company management in monitoring and implementing business strategies that maximize shareholder value. Shareholder value, therefore, relies on strategic decisions which are made by the senior management with the assistance of financial management which translates into a return on invested capital. Examples of these decisions are investments in share repurchases, mergers and acquisitions, and in capital spending (Hart & Zingales, 2017).
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References
Hart, O., & Zingales, L. (2017). Companies should maximize shareholder welfare not market value.
Morden, T. (2016). Principles of strategic management. Routledge.
SF001: Multiple Perspectives on Financial Management
Rubric
| 0
Not Present |
1
Needs Improvement |
2
Meets Expectations |
3
Exceeds Expectations |
|
| Sub-Competency 1: Demonstrate an understanding of the role of financial management in promoting a company’s success in general. | ||||
| Learning Objective 1.1:
Describe the role of financial management in promoting a company’s success. |
Description of the role of financial management is missing. | Description does not identify the main goals and/or contributions of financial management.
Description does not relate financial management to the specific activities of the management team. |
Description identifies the main goals and contributions of financial management.
Description relates financial management to the specific activities of the management team. |
Response demonstrates the same level of achievement as “2,” plus the following:
Description provides recent historical context in describing the need for financial management, including specific examples on how the role of financial management is brought out in companies. |
| Learning Objective 1.2:
Explain the role of financial management in serving the interests of shareholders. |
Explanation of the role of financial management in serving the interests of shareholders is missing. | Explanation does not identify the goals and/or interests of shareholders.
Explanation does not describe the relationship between short- and long-term financial goals and shareholder value. |
Explanation identifies the goals and interests of shareholders.
Explanation describes the relationship between short- and long-term financial goals and shareholder value. |
Response demonstrates the same level of achievement as “2,” plus the following:
Explanation links financial management to positive impacts at a national and/or global level. |
SF001: Multiple Perspectives on Financial Management
SF001: Multiple Perspectives on Financial Management
Prompt 2
Analysis of a Publicly Traded Company
Scenario
You are an analyst for an investment firm that operates the Global Pioneer Fund, a collection of publicly traded stocks featuring companies with outstanding track records in the areas of ethics, social responsibility, and global stewardship. The fund’s chief analyst has asked you to research the Coca-Cola Company’s financial filings and other annual reports to help decide if the fund should invest in Coca-Cola shares next year.
· Based on your research, write an analyst report that analyzes the company’s information and provides specific examples that describe the company’s ethics, social responsibility programs, and commitment to global stewardship and development. Include a brief recommendation that is supported by the evidence collected as to inclusion of Coca Cola in the Global Pioneer Fund. What concerns, if any, would you have about including Coca-Cola shares in the fund? (450–750 words)
SF001: Multiple Perspectives on Financial Management
Your Response
Maximizing shareholder value has been the main goal of many companies. However, in recent years, companies have realized that customers and investors are more concerned with companies’ reputation especially their corporate social responsibility and sustainability. Commitment to global stewardship and development, social responsibility and ethics have become many companies’ focus. The Coca Cola Company is among the leading companies when it comes to corporate social responsibility. The company started this concept in the following main areas: active, healthy living, energy and climate, the community, beverage benefits, the workplace, water stewardship, and sustainable packaging (The Coca-Cola Company, 2017). The company has also adopted various international guidelines on corporate social responsibility like the Respect and Remedy framework, and Global Compact into its conduct. SF001: Multiple Perspectives on Financial Management
The company focuses on conserving the environment by using materials that are recyclable. In 2009, the Coca Cola Company launched Plant Bottle becoming the first PET plastic bottle globally that is fully recyclable. Plant Bottle packaging account for approximately 7 percent of the company’s packaging volume globally and 30 percent in North America. Coca-Cola Company makes the PET plastic bottles from sugar and plant matter material hence reducing CO2 emissions. Coca-Cola is investing in more technology that will enable the company to utilize recycled material more in packaging. In 2018, the company announced its intentions to expand the access to the IP for the Plant Bottle (Moye, 2019). One of the goals of the company is to push innovation to chemical recycling and packaging design.
Since its start, the Coca Cola Company has given back over one billion dollars to promote local communities sustainability all over the world through The Coca-Cola Foundation. This is the company’s main philanthropic arm internationally. The company has committed itself to give back 1% of each previous year’s operating income through company donations and this foundation. In 2017, the company gave back over 138 million dollars to benefit almost 300 organizations across over seventy territories and countries (The Coca-Cola Company, n.d). The priority areas of the company include protecting the environment, empowering women and enhancing communities.
The Coca Cola Company uses the advertising platforms to promote and celebrate its values. It celebrates unity especially when there is cultural division. It reminds it customer about togetherness. For instance, in a spot named: A Coke is a Coke”, the company highlight that Coca-Cola is for everyone. In the ad, the animated characters represent people in various walks of life. This is an expression of the company’s values (Moye, 2019).
The discussed examples above are simply some of Coca-Cola’s main programs that promote corporate social responsibility, its values, and ethics. The company has numerous programs set to promote sustainability, company ethics and values, and its commitment to global development and stewardship. It has an outstanding record in social responsibility, ethics, and global stewardship and I would recommend the fund to invest in the company.
References
Moye, J. (2019, Jan 25). Coca-Cola CEO at Davos: Collection and Recycling Key to Driving Circular Plastics Economy. Retrieved from: https://www.coca-colacompany.com/stories/coca-cola-ceo-at-davos-collection-and-recycling-key-to-driving-circular-plastics-economy
Moye, J. (2019, Jan 24). Together is Beautiful: Coca-Cola Uses Big Game to Celebrate Unity and Diversity in Both its Advertising and Hometown. Retrieved from:
The Coca-Cola Company. (2017). 2017 Sustainability Report. Retrieved from: https://www.coca-colacompany.com/2017-sustainability-report
The Coca-Cola Company. (n.d). The Coca-Cola Foundation. Retrieved from:
https://www.coca-colacompany.com/our-company/the-coca-cola-foundation
Rubric
| 0
Not Present |
1
Needs Improvement |
2
Meets Expectations |
3
Exceeds Expectations |
|
| Sub-Competency 2: Analyze annual reports and other credible sources to outline a publicly traded company’s ethics practices from a financial point of view. | ||||
| Learning Objective 2.1:
Identify a publicly traded company’s ethics practices. |
Identification of a publicly traded company’s ethics practices is missing. | Identification does not include three specific examples.
Identification does not include examples from the annual reports and one other credible source. |
Identification includes at least three specific examples from a credible source.
Identification includes examples from the annual reports and at least one other credible source. |
Response demonstrates the same level of achievement as “2,” plus the following:
Identification includes more than three specific examples.
Identification includes examples from more than two credible sources. |
| Learning Objective 2.2:
Analyze a publicly traded company’s ethics practices from a financial point of view. |
Analysis of a company’s ethics practices from a financial point of view is missing. | Analysis does not include a recommendation that is supported by the evidence.
Analysis does not make reference to potential concerns.
Analysis does not connect the company’s practices to the interests of shareholders. |
Analysis includes a recommendation that is supported by the evidence.
Analysis references potential concerns and cites them, if any.
Analysis connects the company’s practices to the interests of shareholders. |
Response demonstrates the same level of achievement as “2,” plus the following:
Analysis links ethics practices to positive impacts at the local, national, and/or global level.
Analysis links ethics practices to positive impacts on employee recruiting, satisfaction, and retention. |
| Sub-Competency 3: Analyze annual reports and other credible sources to outline a publicly traded company’s social responsibility programs from a financial point of view. | ||||
| Learning Objective 3.1:
Identify a publicly traded company’s social responsibility programs. |
Identification of a company’s social responsibility programs is missing. | Identification does not include three specific examples.
Identification does not include examples from the annual reports and one other credible source. |
Identification includes at least three specific examples.
Identification includes examples from the annual reports and at least one other credible source.
|
Response demonstrates the same level of achievement as “2,” plus the following:
Identification includes more than three specific examples.
Identification includes examples from more than two credible sources. |
| Learning Objective 3.2:
Analyze a publicly traded company’s social responsibility programs from a financial point of view. |
Analysis of a company’s social responsibility programs from a financial point of view is missing. | Analysis does not include a recommendation that is supported by the evidence.
Analysis does not make reference to potential concerns.
Analysis does not connect the company’s practices to the interests of shareholders. |
Analysis includes a recommendation that is supported by the evidence.
Analysis references potential concerns and cites them, if any.
Analysis connects the company’s practices to the interests of shareholders. |
Response demonstrates the same level of achievement as “2,” plus the following:
Analysis links social responsibility programs to positive impacts at the local, national, and/or global level.
Analysis links social responsibility programs to positive impacts on employee recruiting, satisfaction, and retention. |
| Sub-Competency 4: Analyze annual reports and other credible sources to outline a publicly traded company’s global influence from a financial point of view. | ||||
| Learning Objective 4.1:
Identify a publicly traded company’s global influence. SF001: Multiple Perspectives on Financial Management |
Identification of a publicly traded company’s global influence is missing. | Identification does not include three specific examples.
Identification does not include examples from the annual reports and one other credible source. |
Identification includes at least three specific examples.
Identification includes examples from the annual reports and at least one other credible source.
|
Response demonstrates the same level of achievement as “2,” plus the following:
Identification includes more than three specific examples.
Identification includes examples from more than two credible sources. |
| Learning Objective 4.2:
Analyze a publicly traded company’s global influence from a financial point of view. |
Analysis of a publicly traded company’s global influence from a financial point of view is missing. | Analysis does not include a recommendation that is supported by the evidence.
Analysis does not make reference to potential concerns.
Analysis does not connect the company’s practices to the interests of shareholders. |
Analysis includes a recommendation that is supported by the evidence.
Analysis references potential concerns and cites them, if any.
Analysis connects the company’s practices to the interests of shareholders. |
Response demonstrates the same level of achievement as “2,” plus the following:
Analysis links global influence to positive impacts at the local, national, and/or global level.
Analysis links global influence to positive impacts on employee recruiting, satisfaction, and retention. |
SF001: Multiple Perspectives on Financial Management
