Finance
Focusing on the first aspect which is found to be a crucial in business is finance. It is considered to be the backbone of the company. Before studying in detail the finance in relation to shareholders I considered this aspect to be important for the deciding the performance and management of the company are taken care of this. But in reality, it is not that narrow concept. It includes the satisfactory performance given to the internal and external shareholders of the organization. These internal shareholders include employees and managers of the company and external shareholders include the government, suppliers, and investors (Aslan & Kaya, 2014).
Different stakeholders may wish to consider the financial information available to them from slightly different perspectives. For example, employees may be interested in knowing the stability of their employee in terms of risk to their jobs but may also look at the profitability with a view to paying expectations. Also, suppliers or distributors may wish to know the creditworthiness of their customers, whether they have the capability to pay their debts or not. Customers wish to assess the profitability and financial stability of the business so to judge the reliability of the future supply (Lara, Osma & Penalva, 2016).
The managers are performed to do the profitability calculations to check whether the company is making the profits or losses. The liquidity position of the company is checked so that the availability of a cash and day to day working expense can be calculated easily by the managers. The efficiency of manager is important there as it is the only person who is responsible for making the funds distribution in various departments of the organization (Willis, 2012). The internal and external shareholders check the reports and accounts of the business to know the budgets and cost allocation to the departments. These shareholders are interested to know the treatment opted by the managers for the overhead allocation and apportionment of expenses. For the betterment of business and financial activities in the organization, shareholders can implement the policies in which decision taken by the finance manager is discussed first with the owners of the company (Amable, 2016).
Marketing
Another aspect which should be taken into the consideration is marketing. Before doing this analysis I considered marketing to be the tool for selling the products and services to the public at large by hook and crook. The only aim of the marketing is to sell the products by a marketer to the consumers (Hayali, Sarili & Dinc, 2012). The shareholders of the company are not responsible for the marketing done by the company and are not affected by the decision taken in the marketing of products. But after doing the research I found the concept of marketing little different from the previous view. Marketing includes the marketing mix, pricing strategy, targeting, positioning and segmenting of the product or service business is dealing. Marketing mix includes the 4P’s which are price, product, place, and promotion (Ramanathan, Poomkaew & Nath, 2014).
All these factors and related decisions are impacting the shareholder’s reputation and earnings. If a company is advertising any wrong thing and message with a product then it will be considered as fraudulent or wrong means of activities done by the company and which affect the shareholders also. While targeting and positioning of the product, the areas to which the company is targeting is taken and in the positioning to which sector or target group, Company is focusing is considered. Target group here refers to the group or age of people, a company is focussing on. Marketing also includes the age of the product in which the product achieves the maturity of the product (Singh & Pattanayak, 2014).
The shareholders are interested to know which product the business is going to offer in the market. The product is following the basic legal requirements and essentials or not as the government is one of the shareholders of the company. The taxation and pricing strategy opted by the company is also checked by these shareholders. Shareholders have special consideration on the pricing strategy opted by the product whether the company is going to introduce the new product or copying the existing product offered by some other competitor as it going to impact the profitability of the company. For having the knowledge of the product to the customer and other, promotion activities are done by the company like campaigns, advertisement of the product etc. (Curley & Noormohamed, 2014).
Operations
Another aspect which affects the decision making of the business is the activities performed in the business. This aspect is related to the operations or working in the business. This aspect is not narrow as I think before studying this topic. The operation includes the supply chain of the product. The supply chain is a system in which organizations are responsible to manage its resources, activities, information, and people involved in moving a product from supplier to customer. This means from the place of production to the place of consumption. Producing goods at one place and distributing the goods to large are a very tedious task to do for the company, larger the reach, more will be the complications and difficulty faced by the managers and distributors. The managers are responsible for making the decisions related to where the goods are distributed by the distributor.
For the proper operations of the business, various techniques are used to have cost and material efficiency in the business. These techniques include the lean production, JIT (Just in Time), agile production. All these techniques are performed in the business to have control over the cost and quality of the product. These techniques are also focussed on the market changes and changes in the demand of the consumers of their product. There is easy change in the implementation of the new trends. Shareholders have put a check on these activities so to have less wastage of resources and have a cost advantage in the business (Panda, 2014).
Operation work can become more transparent and accountable if the managers implement the quality control and management technique in the operation so that the quality and cost factor can be ensured. The use of learning curve in the business can be done so that the rate of a person can be measured by gaining the new skills and experience. Managers can implement the strategic capacity in the management so that the future operations can run smoothly in the organization (Pagell & Shevchenko, 2014).
Human Resource
Last but not the least and a very important aspect which is the one who makes the decision and planning in the organization that is the Human Resource. Human resource is an important factor in the organization. An organization can have the same financial resources, marketing, and operation strategies, but no two organizations can have the same human resources. A company can gain more by properly using the human resource of the organization and can have the competitive edge over its competitors. The quality of decisions and work done by the managers are checked by the shareholders. The shareholders are also focussed on the training given to employees will impact the decision making of the individuals and ultimately improvement in the performance (Collings, 2014).
Before having research on this topic, I considered the human resource to be the part of the organization who works for the organization. I think there is no need to give the training to them, they already know in advance what work to do, how the work is to be done. But in reality, it was not actually true. The training and development enhance the skills of the employee. This enhancement will bring effectiveness and efficiency in the decision making of the employee which will be good for the organization. The level of productivity will also increase by giving the proper training to the workers. Organisation gives salaries according to the work they are performing in the organization (Rani & Mishra, 2014).
Conclusion:
In the last, I can conclude that these aspects of the business are very important to take into consideration. All these are equally significant as the blood for the human body. These elements are also important for the stakeholders also. Shareholders are taken into consideration for the better performance, profitability, and stability of the organization. The business profits and decision making are based on the decision taken by the managers. The shareholders have special concern over the company’s reputation and profits earning. The cost determination is must and always be in the eyes of them. The development and training of the employees are the suggestions of the owners itself so to have the better future with skilled workers. These factors are found to be relevant for any business to be seen thoroughly by the managers.
Aspects of finance, marketing, operations and human resource management are an important part of every type of organization irrespective of its nature and size of the organization. In this reflecting essay, we are highlighting the essentials which are needed in the business for making its internal and external shareholders satisfactory. If the shareholders are earning and satisfied with the work performed by the organization then the company will work in a more active manner. Before studying these topics, I considered these topics as relevant as they are after studying but from the deep research, I come to know the internal and external values affected by these factors. These factors affect the profitability, goodwill, and workings of the company.
References:
Amable, B. (2016). Institutional complementarities in the dynamic comparative analysis of capitalism. Journal of Institutional Economics, 12(1), 79-103.
Aslan, L. & Kaya, A.P.D.C.T. (2014). Information Systems Audit and Continuous Auditing in Turkish Capital Markets. European Journal of Accounting Aud?t?ng and Fianance Research, 2(1), 24-31.
Collings, D.G. (2014). Toward mature talent management: Beyond shareholder value. Human Resource Development Quarterly, 25(3), 301-319.
Curley, C.B., & Noormohamed, N.A. (2014). Social media marketing effects on corporate social responsibility. Journal of Business & Economics Research (Online), 12(1), 61.
Hayali, A., Sarili, S., & Dinc, Y. (2012). Turkish Experience in Bank Shareholders’ Fraud and Bank Failure: Imar Bank and Ihlas Finans Case. The Macrotheme Review, 1(1), 115-129.
Lara, J.M.G., Osma, B.G. and Penalva, F. (2016). Accounting conservatism and firm investment efficiency. Journal of Accounting and Economics, 61(1), 221-238.
Pagell, M. & Shevchenko, A. (2014). Why research in sustainable supply chain management should have no future. Journal of supply chain management, 50(1), 44-55.
Panda, S. (2014). Coordination of a socially responsible supply chain using revenue sharing contract. Transportation Research Part E: Logistics and Transportation Review, 67, 92-104.
Ramanathan, R., Poomkaew, B. & Nath, P. (2014). The impact of organizational pressures on environmental performance of firms. Business Ethics: A European Review, 23(2), 169-182.
Rani, S. & Mishra, K. (2014). Green HRM: Practices and strategic implementation in the organizations. International Journal on Recent and Innovation Trends in Computing and Communication, 2(11), 3633-3639.
Singh, P.K. & Pattanayak, J.K. (2014). Linking of Customer Satisfaction with Shareholders’ value: A Review. Global Journal of Finance and Management, 6(5), 403-412.
Willis, M.J. (2012). Costs, benefits, and consequences of shareholder class action litigation: Evidence from Canada. Pennsylvania: University of Pennsylvania.
Essay Writing Service Features
Our Experience
No matter how complex your assignment is, we can find the right professional for your specific task. Contact Essay is an essay writing company that hires only the smartest minds to help you with your projects. Our expertise allows us to provide students with high-quality academic writing, editing & proofreading services.
Free Features
Free revision policy
$10Free bibliography & reference
$8Free title page
$8Free formatting
$8How Our Essay Writing Service Works
First, you will need to complete an order form. It's not difficult but, in case there is anything you find not to be clear, you may always call us so that we can guide you through it. On the order form, you will need to include some basic information concerning your order: subject, topic, number of pages, etc. We also encourage our clients to upload any relevant information or sources that will help.
Complete the order form
Once we have all the information and instructions that we need, we select the most suitable writer for your assignment. While everything seems to be clear, the writer, who has complete knowledge of the subject, may need clarification from you. It is at that point that you would receive a call or email from us.
Writer’s assignment
As soon as the writer has finished, it will be delivered both to the website and to your email address so that you will not miss it. If your deadline is close at hand, we will place a call to you to make sure that you receive the paper on time.
Completing the order and download