Global Financial Management

Global Financial Management

Introduction

Every organization needs to manage its finances in such a way that it can help the organization to flourish in the future. Now days the need of effective financial management has increased due to globalization and because of the digitalization of economy. Previously organizations were concerned about increasing their profits only but now they have to think more. In past the profit maximization was only done through mass sales also known as increase in the sales of their products but now management thinks more than just increasing the sales in order to get more revenue and profit. Now the organizations have to focus more on their development i.e. on the development of their structure and intellectual property (Carrada-Bravo 2002). The organizations are changing rapidly and their structure is also changing with the passage of time. In order to increase their intellectual property, organizations have started to spend more on managing their finances. They have also started to work on their developing their knowledge. This knowledge will further help these organizations to strengthen their finances through intellectual properties. In this paper we will be discussing the steps that should be taken by the upper management of Acme (Carrada-Bravo 2002). Furthermore the valuation of the intellectual property of Acme Company will also be analyzed and the methods of analyzing will be discussed in the paper. A company's Intellectual property is valuated in order to known the real value of the company. The primary reason behind evaluation of intellectual property of an organization is the change in technology. Previously only physical and tangible assets were valuated of an organization were valued but due to changes in the culture and international environment the organizations have grown too much which has now resulted in the management of their global finances which not only includes tangible things but also includes non-tangible items (Saccomanni & Chambers 2008).

Discussion

Before we give the suggestions to the management of the Acme Inc, we have to define what actually intellectual property and intellectual capital refers to? Intellectual capital includes Human capital Structural capital, intellectual assets and intellectual property. Human capital is the most important asset of all (Carrada-Bravo 2002). Human capital involves various kind o skills and experience that an employee has. This also includes the collection of education which an employee has i.e. the education of employee along with the knowledge and skill set are part of human capital. Organization has to evaluate this asset on timely basis. For the development of its human capital the organization arrange various workshops, training and seminars. Organization also has to support the education of its employees as this also helps to increase the human capital of the company. Structural capital of a company includes the all the intangible assets of the company (Brigham & Ehrhardt 2011). This includes various processes which include the process of documentation and the infrastructure that is prevailing in the organization to support the organizational operations. Another type of asset is intellectual ...