Financial Decision Making
COMMUNITY COLLEGE
BIRMINGHAM
EDEXCEL LEVEL 7 BTEC PROFESSIONAL
HIGHER NATIONAL IN BUSINESS
UNIT TITLE: UNIT 13
COURSE TITLE: MANAGING FINANCIAL PRINCIPLES AND TECHNIQUES
NAME OF CANDIDATE:
DATE ASSIGNMENT IS DUE: 20th November 2012
TUTOR: S. M. Azeem
Please, ensure you sign the statement of authentication and follow the notes given at the end of the assignment
PREAMBLE
Organisations operate in a very competitive and continually changing environment where effective decision making is crucial if an organisation is to survive or even be profitable. An important resource for decision making is financial and cost information and it is important for managers to be able to interpret, analyse and evaluate this information effectively and have a sound foundation in financial principles and techniques relevant to the strategic management processes.
This assignment covers four learning outcomes:
1 Be able to apply cost concepts to the decision-making process
4 Be able to recommend cost reduction and management processes for an organisation
5 Be able to use financial appraisal techniques to make strategic investment decisions for an organisation
6 Be able to interpret financial statements for planning and decision making
TASK 1 (Be able to apply cost concepts to the decision-making process) comprise the following aspects:
➢ Generally speaking, Pricing strategies are of two generic types: costs-based and Market-oriented. Whereas cost-plus approaches to pricing are proactive, in that prices are largely determined by the organisation's financial performance objectives, market-oriented approaches are reactive to market conditions and are shaped by the organisation's marketing goals.
1.1 explain the importance of costs in the pricing strategy of
BIRMINGHAM
EDEXCEL LEVEL 7 BTEC PROFESSIONAL
HIGHER NATIONAL IN BUSINESS
UNIT TITLE: UNIT 13
COURSE TITLE: MANAGING FINANCIAL PRINCIPLES AND TECHNIQUES
NAME OF CANDIDATE:
DATE ASSIGNMENT IS DUE: 20th November 2012
TUTOR: S. M. Azeem
Please, ensure you sign the statement of authentication and follow the notes given at the end of the assignment
PREAMBLE
Organisations operate in a very competitive and continually changing environment where effective decision making is crucial if an organisation is to survive or even be profitable. An important resource for decision making is financial and cost information and it is important for managers to be able to interpret, analyse and evaluate this information effectively and have a sound foundation in financial principles and techniques relevant to the strategic management processes.
This assignment covers four learning outcomes:
1 Be able to apply cost concepts to the decision-making process
4 Be able to recommend cost reduction and management processes for an organisation
5 Be able to use financial appraisal techniques to make strategic investment decisions for an organisation
6 Be able to interpret financial statements for planning and decision making
TASK 1 (Be able to apply cost concepts to the decision-making process) comprise the following aspects:
➢ Generally speaking, Pricing strategies are of two generic types: costs-based and Market-oriented. Whereas cost-plus approaches to pricing are proactive, in that prices are largely determined by the organisation's financial performance objectives, market-oriented approaches are reactive to market conditions and are shaped by the organisation's marketing goals.
1.1 explain the importance of costs in the pricing strategy of