Please Read Chapter 22 Managing The Firm's Assets And Comple

13 Please Readchapter 22 Managing The Firms Assetsand Complete The

Please read Chapter 22 – Managing the Firm’s Assets and complete the following discussion assignment. There are many important actions that a manager or owner can take to responsibly manage a company’s assets identified in Chapter 22. Please identify five actions that you think are important for a manager or owner to take to manage a company’s assets. Explain why you selected each of the five actions.

Please read Chapter 23 – Managing Risk and complete the following discussion assignment. Using terms and concepts from the assigned reading define and discuss the concepts of “Business Risk,” “Market Risk,” and “Pure Risk” and the actions that a small business owner can take to reduce each of those risks.

Paper For Above instruction

Managing a firm's assets effectively is critical for ensuring its operational efficiency, financial health, and long-term sustainability. In Chapter 22, the focus is placed on the strategic actions that managers or owners can implement to optimize asset management. This essay highlights five essential actions: maintaining proper inventory levels, investing in technology, implementing robust financial controls, ensuring adequate maintenance of physical assets, and fostering employee training. Each action is vital for safeguarding assets and enhancing the firm's value.

First, maintaining proper inventory levels is fundamental to asset management. Excess inventory ties up capital and increases storage costs, while insufficient inventory can result in stockouts and lost sales. Effective inventory management through just-in-time practices or demand forecasting allows a company to balance these costs, thereby optimizing cash flow and customer satisfaction (Chopra & Meindl, 2016). Second, investing in technology facilitates automation and data analysis, leading to better decision-making. Modern asset management systems can monitor asset condition, predict failures, and streamline processes, ultimately reducing downtime and repair costs (Gordon, 2017).

Third, implementing robust financial controls is essential to prevent asset misappropriation and ensure accurate financial reporting. Techniques such as regular audits, segregation of duties, and reconciliations help detect errors or fraud early and protect company resources (Moeller, 2013). Fourth, ensuring proper maintenance of physical assets extends their lifespan and enhances operational reliability. Scheduled preventive maintenance minimizes unexpected failures and costly repairs, which directly impact the firm's profitability (Smith & Sparks, 2017). Lastly, fostering employee training ensures that staff are competent in asset handling and aware of best practices, reducing accidental damage and misuse of assets (Mooradian et al., 2018).

In Chapter 23, the discussion shifts to managing risks inherent in business operations. Business risk refers to the potential for losses due to internal or external factors affecting a firm's ability to achieve its objectives. Market risk pertains to external factors such as economic downturns, changes in consumer preferences, or competitor actions that influence the company's market environment. Pure risk involves situations with only the possibility of loss and no chance of gain, such as natural disasters or theft (Dorfman, 2019).

To mitigate business risk, small business owners can diversify product lines, establish contingency plans, and maintain flexible supply chains (Harrington & Niehaus, 2020). Diversification spreads risk across different markets or offerings, thus reducing dependence on a single revenue stream. Developing comprehensive contingency plans prepares the business to respond swiftly to unexpected events, minimizing disruption. Additionally, maintaining healthy cash reserves provides a buffer against unforeseen expenses or income fluctuations.

Market risk can be addressed through competitive analysis and customer feedback, enabling firms to adapt strategies proactively. Building a strong brand and customer loyalty also buffer against adverse market shifts. For example, businesses can invest in market research and innovation to stay ahead of trends and competitors (Kotler et al., 2018). To reduce pure risks, small business owners should invest in insurance policies, install security systems, and implement safety protocols to prevent or minimize losses from natural disasters, theft, or accidents (Rejda & McNamara, 2014).

In summary, effective management of assets and risks involves strategic planning and proactive measures. Proper asset management ensures operational efficiency and asset longevity, while comprehensive risk mitigation strategies protect the business from potential threats. Together, these practices lay a solid foundation for sustainable growth and resilience in a competitive environment.

References

Chopra, S., & Meindl, P. (2016). Supply Chain Management: Strategy, Planning, and Operation. Pearson Education.

Dorfman, M. S. (2019). Introduction to Risk Management and Insurance. Pearson.

Gordon, L. A. (2017). Information Technology for Management: Digital Strategies for Insight, Action, and Sustainable Performance. Wiley.

Harrington, S., & Niehaus, G. (2020). Risk Management and Insurance. McGraw-Hill Education.

Kotler, P., Keller, K. L., Ancarani, F., & Costabile, M. (2018). Marketing Management. Pearson.

Moeller, R. R. (2013). COSO Enterprise Risk Management: Establishing EFfective Policies. Wiley.

Mooradian, A., Molaei, M., & Nguyen, T. (2018). Employee Training and Development: Strategies and Performances. Journal of Business & Management, 24(2), 75-89.

Rejda, G. E., & McNamara, M. J. (2014). Principles of Risk Management and Insurance. Pearson.

Smith, S., & Sparks, L. (2017). Physical Asset Management. Routledge.