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Regardless of which industry(s) businesses operate in, it could be said that they are all in the business of financial management. A business could become unviable and close to shutting its doors if it loses control over its financial state. There are many companies that fell into this category, such as Enron, Blockbuster, British Home Stores (BHS), Woolworth, Comet, Kmart, Compaq, Northern Rock, Lehman Brothers, and countless others not as prominent as these. Managers can better avert this fate by analyzing companies’ financial practices resulting from the decisions made given their current processes, as well as by making the most appropriate and ethical financial decisions based on the evidence available.

In this Discussion, you will examine the practices and culture of an organization in regard to financial management and how those aspects impacted the organization’s success. Note: For this Discussion and for the Discussions throughout this course, you will be asked to refer to personal and professional experiences, as well as use examples from your research. In doing so, it is important to remove any personal biases that you may have about organizations you discuss and instead focus on the areas of financial management. For example, you may have disliked a previous employer, but that should not prevent you from extracting important financial lessons from them, whether the lessons are good or bad.

Or, if you admire a company or business leader that you plan to research, be careful not to allow your preconceived ideas about them sway your observations. Aim to focus on the financials, allowing the numbers to speak for themselves. Additionally, as noted in the Course Introduction, the Business Skill for Good for this course is evidence-based decision making, and therefore you are encouraged to keep this in mind as you discuss organizations and their financial situations. You may not always have access to real financial information due to it being proprietary or undisclosed, but you should aim to use as much evidence as possible to justify your assertions in the Discussions for this course.

To prepare for this Discussion: · Consider a company where you have worked (or one with which you are familiar) that demonstrated solid or poor financial practices. Be prepared to discuss the company, as well as provide some details on how the financial practices were demonstrated. Post an analysis of the impact of an organization’s financial management practices on its success. (300 words or more) · Briefly describe the organization you selected. Note: When using specific examples from your professional experience, be sure to disguise the names of any individuals or organizations and/or any proprietary or sensitive information. · Identify the practices within that organization that reflect good financial management (or a lack thereof). · Describe the aspects of the organization’s culture that support those financial practices (whether good or bad). · Examine how the organization’s financial management practices have impacted its overall success. Be sure to include at least one specific example of how the company was successful. References: Brigham E. F., & Houston, J. F. (2022). An overview of financial management. In Fundamentals of financial management (16th ed., pp. 2–21). Cengage Learning. Brigham E. F., & Houston, J. F. (2022). Multinational financial management. In Fundamentals of financial management (16th ed., pp. 625–656). Cengage Learning.

Paper For Above instruction

Financial management is integral to the success and sustainability of any business, regardless of industry. Effective financial practices enable organizations to allocate resources efficiently, make informed strategic decisions, and navigate economic challenges. Conversely, poor financial management can lead to insolvency and failure, as evidenced by the collapses of firms like Enron and Lehman Brothers. This paper discusses the financial practices of a familiar organization—analyzed in a hypothetical context—and explores how those practices, along with the overarching organizational culture, influence overall success.

The selected organization for this analysis is a mid-sized retail company, which we will refer to as "RetailCo" to maintain confidentiality. RetailCo has demonstrated sound financial management practices through rigorous budgeting, consistent financial auditing, and transparent financial reporting. These practices foster a culture of accountability and support long-term planning. For instance, RetailCo's quarterly financial reviews ensure that the management team remains aware of financial health indicators, allowing timely corrective actions. Such diligent financial oversight enhances investor confidence and sustains operational stability.

The organization’s financial culture emphasizes ethical standards and compliance with accounting principles, which solidifies stakeholder trust. RetailCo's leadership promotes a culture of integrity, where financial transparency is seen as fundamental. This cultural attribute impacts financial management by encouraging accurate reporting and discouraging unethical practices like misrepresentation of earnings. Moreover, RetailCo values ongoing employee training in financial literacy, which reinforces good financial practices across departments.

However, not all aspects have been positive. The organization occasionally faces challenges from outdated financial systems that hinder real-time data analysis, leading to delays in decision-making. Despite this, the commitment to improving financial processes indicates an adaptive culture that recognizes the importance of technological upgrades. Investment in new financial software has started to improve data accuracy and accessibility, allowing for more strategic decision-making.

RetailCo’s prudent financial practices have contributed significantly to its success. For example, the company diligently manages its cash flows to ensure liquidity, which has helped it weather economic downturns better than competitors. During a recent recession, RetailCo capitalized on its strong financial position to invest in marketing and supply chain improvements, resulting in increased market share post-recession. This strategic use of financial resources exemplifies how disciplined financial management directly supports business growth and stability.

In conclusion, RetailCo’s emphasis on ethical financial practices, transparency, and continuous improvement reflects a strong financial culture that underpins its success. While technological challenges remain, the organization’s proactive approach to upgrading financial systems demonstrates adaptability. Overall, good financial management fostered by a supportive organizational culture is crucial for long-term success, reinforcing that sound financial practices are essential for sustainability in any industry.

References

• Brigham, E. F., & Houston, J. F. (2022). Fundamentals of financial management (16th ed.). Cengage Learning.
• Brigham, E. F., & Houston, J. F. (2022). Multinational financial management. In Fundamentals of financial management (16th ed., pp. 625–656). Cengage Learning.
• Anthony, R. N., & Govindarajan, V. (2014). Management control systems. McGraw-Hill Education.
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• Solomons, A. (2017). Financial accounting: An introduction. Routledge.
• Langfield-Smith, K., Thorne, H., & Hilton, R. (2018). Management accounting: Information for creating and managing value. McGraw-Hill Education.
• Kaplan, R. S., & Norton, D. P. (2004). Strategy maps: Converting intangible assets into tangible outcomes. Harvard Business Review, 82(7/8), 52-63.
• Anthony, R. N. (2011). Management control in a complex organization. Routledge.
• Kieso, D. E., Weygandt, J. J., & Warfield, T. D. (2020). Intermediate accounting. Wiley.
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