...expansion of any business. Successfully placing finances in order means a business can work more efficiently. One of the essential challenges in health care is to manage effectively the finances of the organization. Health care is unique in the way an organization operates based on the finances. This paper will identify effective and ineffective financial management practices that can help to make a company successful. Successfully managing the finances, such as budgeting and cash flow can mean the organization will always have enough money to pay any creditors and also have enough of a profit to operate the business. Effective and Ineffective Financial Management Practices Too often managers have an understanding of their product but not the financial statements of the organization. The manager must have an understanding of what is happening within the organization. The success of the organization can only be ensured by focusing on the factors that affect the performance of the organization. Having and focusing on a plan is essential for the survival of an organization; more so in the health care world because of the many and different areas of revenue. One major area of concern in health care is the third-party payer system. Health care does not have a single billing system for all customers. Managers have to deal with rules and regulations and payment systems from many government and third-party payers (Gapenski, 2008). Short-term financial management is mostly concerned with...
Words: 713 - Pages: 3
...Question-1: What is finance? Ans: Finance is the life blood of every corporation. In the era of modern trade and commerce, business firm have to decide from where they will raise fund, where they will invest and how much of the profit will be distributed among the shareholders. “Finance” Came from Latin word “finis” means “dealing with the money”.finace is called the art and science of managing money. At the micro level, finance is the study of financial planning, asset management and fund raising for business and financial institutions. At the macro level, finance is the study of financial institution and financial markets and how they operate within the financial systems in both the domestic and global economics. Scholar’s view: “Finance consists of providing and utilizing the money, capital rights, credit and funds of any kind which are employed in the operation of an enterprise.” _George R Terry “Finance is concerned with the process, institutionsmarkets and instruments involved in the transfer of money among and between individuals, business and governments”. _Lawrence J Gitman From the above discussion, it can be said that finance is the process of financial planning, identification of sources of fund raising, investment of fund, protection of fund, distribution...
Words: 7921 - Pages: 32
...1. Reflect about the culture existing in your organization and illustrate the impact of property rights and top management on it. 2. Consider any major strategic changes in your organization. Explain the shift in importance of one/two departments as a result of such changes. 1. Explain about your current job and the stage where it creates maximum value? What are the reasons? Also identify untapped opportunity for value creation from other stages of value creation My current organization designs, develops, manufactures and services integrated power systems for use in the air, on land and at sea. They are one of the world’s leading producers of aero engines for large civil aircraft and corporate jets. They are the second largest provider of defence aero engines and services in the world. For land and sea markets, reciprocating...
Words: 2390 - Pages: 10
...business problem using the Business Anatomy Organization A limited liability company Management Function Planning: The Company has a problem in the planning function as they lack the long-term planning as its core function is based on its infrastructure where there are no plans for a long-term maintenance and replacements which causes failures in its services Organizing: There is no problem in the organization function Leading: The leading function has no problems Control: The control function itself is missing, as the planning is faulty Organizational levels The main problem is at the superiors as they lack the vision of future planning and budget allocation. The superiors are only looking for generating more profit regardless the infrastructure itself, which has no maintenance, or replacing the old equipments which reflects on the quality of service and this impacts our accountability Business Functions The problem is mainly related to the IT, Operation, Finance and Knowledge functions as the infrastructure failures are related to the IT and operation departments while budget allocation relates to the financial department and finally the lack of future planning vision is related to the Experience and knowledge. The operation team is trying not to report all the problems to the management as to export the image that they work around each problem or failure in an unprofessional way The finance team on the other hand is always placing obstacles...
Words: 550 - Pages: 3
...|Financial Managers |Advantages and disadvantages of different source of finance | |Accountant |Historical financial information to forecast cash flows | |Investment Advisors | | |Marketing managers and responsible parties in Marketing department |Effective advertising methods to convince consumers about | | |the quality of the service to position the brand in | | |consumers’ mind | | |Competitors strategies and their success of attracting | | |consumers | 1.2. Importance of financial planning The financial planning starts with identification of total capital requirement. For this the finance managers make the sales forecast. Considering sales forecast, then organization requires deciding its production capacity which means the requirement of long term funds. If the production and...
Words: 4571 - Pages: 19
... A. What are some of the industries in the healthcare sector? The major industries in the healthcare sector includes health services, health insurance, medical equipment and supplies, pharmaceuticals and biotechnology, and other (includes a diverse collection of organization ranging from consulting firms to educational institutions to government and private research agencies. B. What is meant by the term healthcare finance as used in the book? Finance, as the term is used within the health services industry and as it is used in the book, consists of both the accounting and financial management functions. C. What are the two broad areas of Healthcare Finance? Accounting as its name implies, concerns the recording, in financial terms, of economic events that reflect the operations, resources, and financing of an organization. Financial management or corporate finance, provides the theory, concepts, and tools necessary to help managers make better financial decisions. Certain aspects of accounting involve decision making, and much of the application of financial management theory and concepts requires accounting data. D. Why is it necessary to have a book on healthcare finance as opposed a generic finance book? The reason is that while all industries have certain individual characteristics, the health services industry it truly unique. 2. What is the difference between a business and a pure charity? A business such as a hospital or medical practice, sustains...
Words: 873 - Pages: 4
...Lesson # 1 Financial Management: Introductory Notes and Words Concepts of Finance and Financial Management Financial Management refers to the proper management of finance functions of an enterprise or organization. In other words, financial management is concerned with the financial decision-making and other financial aspects. Thus, financial management involves financial planning, financial organization, financial coordination and control, financial reporting, financial mergers, combinations and acquisitions, insurance and tax management etc. Financial planning is concerned with the act of deciding in advance the financial activities that are essential if the enterprises are to achieve their financial goals and objectives. These financial activities mainly consist of properly estimating financial needs; selecting the proper sources of finances; procuring the requisite funds; proper utilization of the funds and custody and safekeeping of funds. Financial organization is the grouping of the finance functions into various divisions, departments, sections and sub-sections of the enterprises for their proper and efficient performance. That is, financial organization deals with the proper allocation of the finance functions amongst the various financial executives. Financial coordination and control deal with the proper adjustment of the finance function and evaluation of the same in relation to the predetermined standards. Financial reporting is the proper collection and...
Words: 2347 - Pages: 10
...Executive summery The paper represents the process of the planning and organizing of Beximco Pharmaceuticals, Beximco Pharmaceuticals Limited (BPL/ the Company) was incorporated as a public limited company in Bangladesh in 1976. It commenced its manufacturing operation in 1980. The company was listed with Dhaka Stock Exchange in 1985 and with Chittagong Stock Exchange on its debut in 1995. Beximco Pharmaceutical Ltd is the manufacturer and marketer of pharmaceutical product under chemical divisions of Beximco Group. Beximco Pharmaceuticals is one of the leading pharmaceutical companies in Bangladesh. It also is one of the biggest suppliers of pharmaceutical product of any Bangladeshi based company. BPL is the first Bangladeshi company to supply pharmaceutical product to Riffles Hospital the most prestigious hospital of Singapore In 2005, BPL took over Beximco Infusions Ltd., a listed company of the Beximco Group engaged in manufacturing and marketing of intravenous fluids and got enlisted with the Alternative Investment Market (AIM) of the London Stock Exchange through issuance of Global Depository Receipts (GDRs). Shares of the Company are traded in Dhaka and Chittagong Stock Exchanges of Bangladesh and its GDRs in AIM of the London Stock Exchange. The paper seeks information on the planning and organizing system that used at BPL. Different methods have been employed to analyze the data both from primary and secondary sources. It gives an idea of how information on purchases...
Words: 3604 - Pages: 15
...decisions that enable an organization to achieve its objectives. 3 Terminology “Strategic Management” Synonymous with “Strategic Planning” • Strategic management Used more often in academia • Strategic planning Used more often in the business world 4 Terminology Strategic management Refers to: Strategy formulation Strategy implementation Strategy evaluation Strategic planning Refers to: Strategy formulation 5 Brief History 1950s Term strategic planning originates 1960s – 1970s Strategic planning very popular Widely viewed as panacea for problems 6 Brief History 1980s Strategic planning cast aside Planning models did not yield higher returns 1990s–2000 Revival of strategic planning Widely practiced in business world 7 Strategic-Management Process Three Stages Strategy Formulation Strategy Implementation Strategy Evaluation 8 Strategy Formulation Vision & Mission Opportunities & Threats Strengths & Weaknesses Long-Term Objectives Alternative Strategies Strategy Selection 9 Strategy Implementation Annual Objectives Policies Motivate Employees Resource Allocation 10 Strategy Evaluation Review External & Internal Measure Performance Corrective Action 11 Key Strategic Management Terms (Cont’d) 1. 2. 3. 4. 5. 6. 7. 8. 9. Strategists Vision statements Mission statements External opportunities and threats Internal strengths and weaknesses Long-term objectives Strategies Annual...
Words: 1105 - Pages: 5
...------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- MINHAJ UNIVERSITY LAHORE ------------------------------------------------- STRATEGIC MANAGEMENT DEFINATION: “Strategic management can be defined as the art and science of formulating, implementing, and evaluating cross-functional decisions that enable an organization to achieve its objectives”. As the definition implies, strategic management focuses on integrating management, marketing, finance/accounting, production/operation, research and development, information system to achieve organizational success. STAGES OF STRATEGIC MANAGEMENT: The strategic management process consists of three stages: STAGE 1: Strategy Formulation: “Strategy formulation includes developing a vision and mission, identifying organization’s external opportunities and threats, determining internal strengths and weaknesses, establishing long term objectives,...
Words: 898 - Pages: 4
...fresh milk products. Facing the bad press recently that suggests the company’s products were made from powder and water, Vinamilk would like to show people that the saying is not correct. Vinamilk has invested much to produce the 100 percent fresh milk products, whose quality is guaranteed as the name. The process and technology applied to achieve this goal is examined in each tasks. In class, I have learned many different concepts about VMGOS, organization structure, business process and functions, process mapping, quality gateway, planning coordination tools, and project management, etc. For the assignment, I will apply these concepts to Vinamilk company, focusing on its goal to implement new technology to product its 100 percent fresh milk. Evaluate the interrelationship between different processes and functions of Vinamilk related to the new technology to produce 100 percent fresh milk. According to Vinamilk’s organization structure, the company has 8 departments: dairy development, production and R&D, supply chain, finance, project, marketing, sales and HR& Admin. The 8 departments...
Words: 1180 - Pages: 5
...Bajwa IT and Telecom Roll No. :- 03 INDEX Introduction | 3 | Physical components of MIS | 4 | Conceptual Components of MIS | 5 | Structure Based on Management Activity | 6 | Structure Based on Organizational Functions | 12 | Applications Based on MIS | 18 | References | 20 | Introduction Management information system broadly refers to a computer-based system that provides managers with the tools to organize, evaluate and efficiently manage departments within an organization. MIS, or Management Information Systems, are used to manage the data created within the structure of a particular business. These systems store the data and allow the business to manipulate this data. It is the study of people, technology, organizations and the relationship among them. MIS can be defined as the study of how individuals, groups and organizations evaluate, design, implement, manage and utilize systems to generate information to improve efficiency and effectiveness of decision making. The concept of MIS gives high regard to the individual and his ability to use information. While analyzing the data, it relies on many academic disciplines. These include the theories, principles and concepts from the Management Science, Psychology and Human Behavior, making the MID more effective and useful. These academic disciplines are used in designing the MIS, evolving the decision support tools for modeling and...
Words: 2302 - Pages: 10
...the overall growth of the leasing business achieved through diversification of products and services and aggressive marketing with special focus on the SME sector, is indicative of the industry’s contribution to our national economy. It is worth mentioning that, within two decades; the leasing companies have emerged as an alternative source of finance and well sought after arm for credit for SMEs. In order to catch up with the demands of time, most leasing companies have diversified their products and services into other areas like small loans, housing loans, start-up working capital and domestic factoring of accounts receivable. Further to reducing dependence on traditional borrowings from banks for meeting their working capital requirements, some of them have already introduced new financial instruments like Bonds, Securitization of Assets, Syndication Services, Merchant Banking, Stock Brokerage Services, etc which have set new trends for others to follow. 1.2 Objective of the Report There had been some objectives set forward in doing this report so that it can be determined what tasks to perform in the organization. These objectives were not influenced by thought or feeling. These objectives are described in the following:...
Words: 8961 - Pages: 36
...payment to the lessor in reappearance for the usage of the asset. The accounting action for the lease completely depends on the environment of the lease. For office purposes all leases are categorized into one of two categories, they are whichever deemed to be ‘finance leases’ or ‘operating leases’. Discuss the two major types of leases. Accounting behavior for operating leases The accounting actions for an operating lease is frank for together the lessor and the lessee. The lessee has experienced a working expense, so the lease rental owed is written off in the revenue and loss explanation. The lessee has to reveal in the notes to the explanations the amount charged in the year and the quantity of the expenditures to which the entity is dedicated at the year end. Accounting behavior of finance leases A finance lease is one wherever the dangers and prizes of the proprietorship pass to the lessee. When a lessee arrives into a finance lease it is receiving admittance to the risks and payments of the asset and therefore the lessee reflects substance by knowing the asset in its individual accounts. Discuss the terms short-term borrowing and long-term financing. Short-Term borrowing As is understandable in the name, short term borrowing is a form where borrowing duties that must be satisfied frequently within a year to two at most. It is more frequently used for occupied capital necessities, or day-to-day processes of the commercial. There are main types of...
Words: 1157 - Pages: 5
...Question 2 A budget is defined as a plan of operations based on a given estimate of expected income and expense in the future. As such, it is thought of as an action plan, outlining an organization's financial and operational goals. The budget expresses the quantitative arrangement of the entity's management, in terms of allocating the business resources, performance evaluation, and formulating prospective plans. Businesses alike hold this as an annual undertaking, putting into account the company's past year's budget and subsequently previewing projections for the next couple of years (however often occurring short-term, in about a year or less.) Budgets provide control over the instantaneous environment, help to master the financial aspects of the job and department, while at the same time administering solutions to problems before they occur. They focus on the importance of assessing alternative actions before decisions are actually implemented. Budgeting serves as a means of systematically planning and control. This will require a realistic financial documentation of the company's goals and performance objectives. Upon formulation, the analysis provides adequate development throughout the fiscal year. Consequently, monthly performance reports compare budgeted results against actual stats. The management then examine these and set out to take necessary corrective actions against significant variances. This is known in the accounting world as budgetary control. Also, allowing...
Words: 1014 - Pages: 5
