Discuss about the Financial Management for Group Holdings Limited.
For this research paper, I would like to pick ‘Costa Group Holdings Limited’ (CGC) as a research company. Costa Group is an ASX listed organization. Costa is an Australian public company that produces, advertises and distributes fruit and vegetables in the market. Along with this, Costa is the biggest fresh fruit and vegetable dealer in Australia market. It provides avocados, raspberries, blueberries, citrus, bananas, grapes, tomatoes, mushrooms, etc. to the customers. Moreover, the company also offers logistics as well as supply chain solutions to retailers, wholesalers, and FMCGs. The head office of Costa is situated in Ravenhall, Victoria (Costa. 2016). Currently, the company is providing services to supermarket chains, retailers, grocers wholesalers and food producers of Australia and all over the world. In addition, Harry Debney is the chief executive officer (CEO); and Linda Kow is the chief financial officer (CFO) of Costa.
On the other hand, the chief financial officer of the organizations is responsible for the financial growth and success of the business. The CFO performs numerous important roles and responsibilities to achieve the financial goals of the firm in an effective manner (Kyriazoglou, 2012). Along with this, the major general areas for the CFO of the organization are described as below:
The chief financial officer of an organization works as a financial planner of the business. Under this area of responsibility, the CFO of ‘Costa’ does effective financial planning in order to improve the financial performance of the business. Along with this, the CFO of the firm makes effective budgetary arrangements to accomplish the monetary objectives of the business in a pre-decided day and age. Moreover, with the assistance of these budgetary arrangements, business association can utilize its accessible assets and funds in a suitable way. The CFO plays an important role to monitor and control the income of the business successfully. The CFO of Costa has close eyes on all the monetary exchanges of the business (Oakes and Galagan, 2011). Along with this, the CFO of the organization makes numerous powerful money related arrangements to raise the capital and funds of the firm. The CFO is also responsible to create and carry out various powerful money related plans and arrangements that are essential to increase the funds of the business in an effective and an appropriate manner.
On the other hand, the CFO of Costa assesses the monetary necessities and creates long haul budgetary arrangements to satisfy the money related requirements of the business in a viable and a proper way. The CFO is also responsible to discover elective choices that assume a noteworthy part to satisfy the money related necessities of the firm in a convenient way. Moreover, the CFO of Costa also plays a major role to pay the assessments and levy of the business so as to enhance the money related execution of the association (Dlabay and Burrow, 2007). Along with this, the CFO creates powerful bookkeeping arrangements and strategies for acquiring, credit, installment, accumulations, and all the money related commitments that are identified with the business. As a result, it can be said that, the CFO of Costa is mindful to do compelling budgetary arranging and to deal with all the money related exercises of the business in an appropriate way.
The chief financial officer of Costa also works as accounting & financial functions’ developer. The CFO of the organization creates accounting & financial functions in order to improve the financial performance of the business. This is a noteworthy region of obligation regarding the CFO of the firm. It is a direct result of with the assistance of powerful money related capacities; the CFO gets to be ready to make compelling monetary arrangements to enhance the budgetary execution of the business. Along with this, accounting & financial functions are useful to create hazard moderation procedures to diminish monetary dangers in a powerful and a suitable way. The CFO of Costa creates accounting & financial functions in order to enhance the money related execution of the firm (Kasunic and Kasunic, 2009). Moreover, the CFO of the firm actualizes a progressing arrangement of upgrades to make adjustments in the accounting & financial functions. In addition to this, the CFO gets comfortable with the plans of action of the firm. This is key to make esteem and to do all the bookkeeping and money related capacities in a precise way.
On the other hand, the CFO is dependable to enhance both expected and genuine monetary execution of the business. The CFO receives and actualizes diverse money related techniques, for example, proportion examination, adjusted scorecard, and so on to enhance both monetary execution of the firm. The CFO assumes a basic part with a specific end goal to set up a solid correspondence between shareholders, budgetary examiners and venture financiers of the firm (Karaian, 2014). Moreover, there are various intrinsic objectives behind the advancement of bookkeeping/money related capacities. For case, with the assistance of these capacities, the CFO controls the staff of the firm. The CFO creates diverse approaches and techniques; so that the workers can play out all the bookkeeping/money related capacities in an exact way. Apart from this, the CFO of Costa is capable to keep up the exactness of the budgetary information and data. The CFO adjusts the representatives into group; so they may perform bookkeeping/budgetary capacities to enhance general execution of the business (Cannon, Bergmann and Pamplin, 2006). For that reason, it can be said that, the CFO of Costa develops effective accounting & financial functions to accomplish the financial goals of the firm in an effective and a proper manner.
The chief financial officer of Costa also works as the financial risks’ reducer to improve the overall performance of the organization. For case, the CFO of an association assumes a noteworthy part to lessen the monetary dangers of the business (Batman, 2007). The CFO is completely dependable to recognize the money related dangers that may occur in the monetary ranges of the association. In addition to this, the CFO of the organization has inside and out learning of the bookkeeping data frameworks that are utilized by the firm to oversee and control all the budgetary exercises of the business. Moreover, the CFO is responsible to control various sorts of dangers that may influence the money related execution of the business contrarily. The CFO is capable to relieve the dangers that are connected to loss of business partners. Along with this, the CFO of Costa also plays a major role to moderate risks that are identified with the brand picture of the firm (Ferguson, 2006). The CFO creates powerful procedures and centers its consideration on solid administration and brand quality to enhance the brand picture of the business effectively.
On the other hand, the CFO of the firm creates hazard relief systems to alleviate budgetary dangers of the business in a successful and a more far reaching way. For case, the CFO makes hazard relieve system to moderate the money related danger that is connected to the progressions of product costs. For case, to decrease this kind of danger, the CFO grows long haul altered value contracts. The CFO takes help of cost cutting strategies with a specific end goal to keep up the product costs’ adjustments in a successful way (Fitch, 2007). Moreover, the CFO of firm creates hazard moderation system to lighten outside trade hazard. The CFO chooses the level of remote exchange, finds the plausible misfortunes furthermore executes supporting techniques to relieve outside trade hazard. Along with this, the CFO of Costa creates hazard moderation system to ease the dangers that are connected to the agreement disappointments. The CFO affirms every one of the agreements to satisfy their terms and conditions with a specific end goal to alleviate the agreement disappointments’ danger in a proper way (Bouchoux, 2009). Thus, it can be said that, the CFO of the firm is completely mindful to appreciate and moderate money related dangers to enhance the budgetary execution and to fulfill monetary objectives of the business in an effective and a more comprehensive manner.
Apart from this, the responsibilities of the CFO affect the definitive goal and objective of the business. An association attempts to finish its objectives and destinations in a predefined day and age (Bragg, 2011). In addition, the firm is at risk to oversee and control its assets and monetary exercises to accomplish the business targets adequately. In this circumstance, the CFO of the firm controls all the monetary exercises of the business in an appropriate way. The CFO of the firm utilizes the accessible assets to raise the capital and funds of the business. The budgetary development of the firm is specifically connected to the business goals and objectives of the association. In this circumstance, the firm gets to be ready to accomplish ultimate objective of the organization. For this reason, it can be said that, the duties performed by the CFO have an effect on the ultimate objective of the business (Dergel, 2014). In this way, it can be said that, the CFO of an organization performs numerous responsibilities to achieve the financial and business goals & objectives of the business.
The Efficient-Market Hypothesis is a critical venture hypothesis that was produced by Professor Eugene Fama. The EMH hypothesis is helpful for financial specialists keeping in mind the end goal to settle on speculation choice to increase higher returns. In addition to this, the EMH hypothesis insists that, in a fluid business sector, security costs totally reveal all the accessible budgetary data of the business associations. The efficient market hypothesis subsists in various degrees, for example, solid, semi-solid, and feeble. These diverse degrees of EMH hypothesis address the nook of non-open data in business sector costs (Graham and Dodd, 2008). Along with this, the efficient market hypothesis expresses that stocks dependably bargain at their reasonable esteem so; financial specialists can’t buy underestimated stocks and exchange stocks at expanded costs. Furthermore, efficient market hypothesis advises that it is unfeasible to beat the business sector in view of securities exchange productivity uncover all the significant budgetary data of the associations.
Apart from this, the efficient market hypothesis assumes a huge part to choose a portfolio to acquire higher benefits at lower hazard. Be that as it may, the pension fund manager might not pick a portfolio with a pin if the efficient market hypothesis is valid. There are various purposes for this. For case, the real reason is that a portfolio with a pin won’t work in the support of the financial specialists in the event that it includes higher level of danger. In addition, a portfolio with a pin would not have the capacity to give higher level of consumer loyalty. The benefits store supervisor may pick a portfolio with a pin if the EMH is valid and stocks are all around differentiated (Lee, Lee and Lee, 2009). Moreover, the EMH does not intend to pick a portfolio with a pin. The manager should not consider the EMH to choose a portfolio. The primary purpose for it is that a substantial number of stocks are not all around enhanced in the business sector. All things considered, the manger must pick just an all around expanded portfolio to build benefits and to moderate danger in a proper way.
On the other hand, the EMH hypothesis does not portray that determination of portfolio must be finished with a pin. There are various essential standards that the fund manager should take after to choose a portfolio adequately. The main standard expresses that an all around enhanced portfolio is suitable to get higher profit for a portfolio. The second standard avows that the financial specialist must guarantee the level of danger before the choice of portfolio. The third standard clarifies that the selected portfolio must have the capacity to give tax cuts to the financial specialists (Tyson, 2016). So, the manager should concentrate on these tenets to choose a portfolio with a pin. The EMH theory can’t pick a suitable portfolio to the financial specialists. A portfolio with a pin would not be capable to fulfill the clients. As a consequence, the manger might not choose a portfolio just on the premise of the effective market hypothesis.
References
Batman, J.L. (2007). Advising the Small Business: Forms and Advice for the Legal Practitioner. USA: American Bar Association.
Bouchoux, D.E. (2009). Business Organizations for Paralegals, Fifth Edition. USA: Aspen Publishers.
Bragg, S.M. (2011). The New CFO Financial Leadership Manual. UK: John Wiley & Sons.
Cannon, D.L., Bergmann, T. S. and Pamplin, B. (2006). CISA Certified Information Systems Auditor Study Guide. UK: John Wiley & Sons.
Costa. (2016). About Us: Available At: https://costagroup.com.au/ [Accessed On: 20th Sept. 2016]
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Dlabay, L. and Burrow, J.L. (2007). Business Finance. USA: Cengage Learning.
Ferguson, M.R. (2006). The Executive Branch of State Government: People, Process, and Politics. Australia: ABC-CLIO.
Fitch, T. (2007). Career Opportunities in Banking, Finance, and Insurance, Second Edition. Infobase Publishing.
Graham, B. and Dodd, D.L.F. (2008). Security Analysis (6th ed.). USA: Tata McGraw-Hill Companies Inc.
Karaian, J. (2014).The Economist: The Chief Financial Officer: What CFOs do, the influence they have, and why it matters. UK: Profile Books.
Kasunic, T.K.F.T., and Kasunic, F.T. (2009). Supersize Your Small Business Profits!: How to Survive the Current Recession and Manage Your Small Business Profitably During Turbulent Economic Times. Australia: Trafford Publishing.
Kyriazoglou, J. (2012). Business Management Controls: A guide. USA: IT Governance Ltd.
Lee, A.C., Lee, J.C. and Lee, C.F. (2009). Financial Analysis, Planning & Forecasting: Theory and Application. USA: World Scientific.
Oakes, K. and Galagan, P. (2011). The Executive Guide to Integrated Talent Management. USA: American Society for Training and Development.
Tyson, E. (2016). Investing For Dummies. John Wiley & Sons.
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