“Financial Management means planning, organizing, directing and controlling the financial
activities such as procurement and utilization of funds of the enterprise. It means applying general
management principles to financial resources of the enterprise.”

Scope of financial management includes;
a. Investment decisions including investment in fixed assets and investment in current assets
(working capital decisions).
b. Financial decisions relating to the raising of finance from various resources which will
depend upon decision on type of source, period of financing, cost of financing and the
returns thereby.
c. Dividend decision regarding the net profit distribution divided into dividend for shareholder
and retained profits which will depend upon expansion and diversification plans of the

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The above scope is a clear responsibility of experienced and qualified finance
professionals in an organisation.

“Value chain management is the process of organizing the connected group of activities that
create value by producing goods or services from basic raw materials for purchase by a
consumer. The basic objectives of employing value chain management in a business is to
integrate communication and increase cooperation between operational chain members in order to
decrease delivery times, reduce inventories and increase customer satisfaction.”

This scope is the responsibility of operational managers in supply chain, marketing, sales,
planning and production functions.

“Therefore spending time in studying Financial Management in an MBA is a waste of time for all
operational managers, because finance professionals will take care of finances and the
operational managers should learn how to create and manage value and business operation”.

Critically evaluate the above statement with arguments for and against the two statements given
within inverted commas below in part (1) and (2). Your answer should include the following;

1. Arguments supporting the statement “finance professionals will take care of finances and the
operational managers should only learn how to manage the functional activities” (20%)
2. Arguments supporting the statement “operational managers learning finance will help the
business to run effectively and move forward with better quality decisions”. In your
explanation you should indicate, how your learning in the course to date under different topics could add value to an organisation, with specific reference to your current employment/business. (50%)
3. Evaluation of both views and logically arriving at your conclusion. (30%)

Instructions –

Individual submission containing 400 words.
Answers to each part needs to be separately presented.


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