MID-YEAR ASSESSMENT Management Finance Assignment

MID-YEAR ASSESSMENT Management Finance - Assignment Example One of the behavioural issues that have been noticed within the case study is that of resistance from employees. It is a common observance within an organization to have employees refuses to work with the new system or processes. In some cases employees regard the new system as redundant or unnecessary altogether (Attwood, 1996). In such cases usually employees feel threatened by the new system and feel that it challenges their methods of working and makes them feel redundant. In the case provided it was observed that the supervisor of department D Janet was extremely unhappy after viewing the performance report. This behaviour shown by Janet shows that she felt threatened by the report and refused to accept the system altogether. In some cases employees tend to agree to the new budgeting system but ignore its implementation. Employees tend to assure executives of the organization that they would commit to the processes of the system but in reality tend to hold reservations about it, causing reluctance in the implementation of its implementation (Woldring, 2010). As seen in the case out of all the directors only one of the director was interested in its implementations whereas others were uncertain about it. This caused the directors to become uninterested in its effective implementation. Another behavioural issue that can be seen the company is confusion amongst the employees. While developing a budgeting plan it is vital to communicate with employees to investigate the factors that were involved in formation of the actual budget. Since communication between the executives of the company and the employees was not clear misunderstandings are created during the formation of performance reports (Poornima & Charantimath, 2011). This in turn causes employees to disown the report claiming that information provided in the report is baseless and has little or no significance when placed under practical circumstances. Furthermore, there was no training provided to the employees prior to implementing the new financial control system. Direct implementation of the new system caused a great deal of confusion amongst employees who were taken aback on receiving their department’s performance report. Changes to be introduced in the Existing Report System In order to ensure that the current budgeting system is more easily accepted by the company’s employees it is vital that the management removes uncertainty and insecurity that the company employees have regarding it. The first and foremost step that the company could take is to initiate a training program for its employees. The main aim of the training program should be to increase the knowledge and awareness of the employees regarding budgeting and comparative analysis. The training sessions must inform employees of the exact advantages that budgeting and comparative analysis would bring about to the company. The process of training must start with the top executives of the company. Obtai ning the consent and backing of the top executives would help in the implementation process (Finkelstein et al., 2008). Moreover, knowing that all the organizational executives share the same vision convincing employees at the lower level makes it a lot easier. Once the company’s executives have been briefed it is then time to convince employees working at the lower level

Explain the difference between a change in demand and a change in the Essay

Explain the difference between a change in demand and a change in the quantity demanded. List and discuss at least 5 factors tha - Essay Example Thus the factors that determine demand can broadly be categorized into two categories; price determinants and non-price determinants. Presence of these two distinct determinants of demand gives rise to two different but equally important concepts; change in quantity demanded and change in demand. 1. Change in Quantity Demanded. A change in quantity demanded refers to the variation in consumers’ demand of a commodity due to a change in its price, other factors remaining constant. Thus, the only factor that causes a change in quantity demanded is price. In case of change in quantity demanded there is upward or downward movement along the same demand curve. The change in quantity demanded is depicted in fig 1. As the price falls from p to p1, the quantity demanded increases from q to q1 and there is movement along the same demand curve from A to B. A ‘fall’ or ‘increase’ in quantity demanded due to the change in price is also termed as ‘contraction ’ or ‘extension’ of demand. Fig 1: Change in Quantity Demanded 2. Change in Demand. A change in demand refers to an increase or decrease in demand that is brought about by a change in the other factors, except price. Thus a change in demand is a result of non-price determinants coming into force. ... Unlike, change in quantity demanded, a change in demand entails a shift in the demand curve; either to the left or to the right of the original demand curve. The change in demand is depicted in fig 2. There is an increase in demand when the demand curve shifts from D1 to D2. On the other hand, decrease in demand occurs when the demand curve shifts from D1 to D3. Fig 2: Change in Demand There are numerous non-price determinants of demand that lead to a change in demand. Some of these are discussed below: 2.1 Tastes and Preferences. Tastes and preferences play a pivotal role in shaping the demand for a product or commodity. In fact, the endeavor of any marketer of goods or services is to alter the tastes and preferences of the consumers so that they like the product that is being sold. The tastes and preferences of consumers are affected by numerous factors like advertising, promotions, cultural environment, government reports etc. For example, if the findings of a government funded re search study suggest that ingestion of carbonated drinks like Coke or Pepsi may be harmful to the human body, people may refrain from drinking these products and this may lead to a decrease in demand. 2.2 Prices of related products. There exist products in the market that may be substitutes or complements to the product in question. It is reasonable to expect that the prices of these related products have a bearing on the demand of a particular product. It is worthwhile to mention that if the price of a substitute changes, the demand for the product under consideration moves in the same direction as the change in the substitutes price. For e.g. in case the price of Coke increases, quantity demanded of Pepsi, a