FINANCIAL ANALYSIS

Financial Analysis

[Name of the Institute]

Introduction3

Discussion3

Performance3

The importance of Business Meeting performance targets4

The importance of using the performance evaluation4

Quality Improvement5

Focus5

Analyze5

Develop5

Execute5

Evaluate5

Use of data6

Improved morale6

Better customer service6

Increased productivity6

Increased revenue6

Information7

The Role of Information in Strategic Decision Making7

Types of Information Management System7

Transaction information system7

Operations Information Systems8

Decision Support Systems (DSS)8

Reason for Quantitative Decision Making9

System Approach to Decision Making and Problem Solving9

Steps9

Define the problem9

Develop an alternative solution9

Select an appropriate Solution10

Designing the solution10

Implement the solution10

Review the Solution10

Finance10

Reasons for the Cash flow Forecasting10

Reasons against the Cash flow forecasting11

Importance of Marginal Costing in the process of Decision Making11

Importance of Break Even analysis in the process of Decision Making12

Investment Appraisal Technique13

1.Return on Capital Employed13

2.Payback period13

3.Net Present Value13

4.Internal Rate of Return13

Profit Margin15

Return on Assets16

The return on assets has been declined from 11.22 % to 10.9%.16

Cost of goods sold to Sales Ratios17

Conclusion18

References19

Financial Analysis

Introduction

This paper focuses on three parts, i.e. Performance, Information and Finance. In the part of performance, the role of operations within organization, importance of performance evaluation and quality improvement techniques are discussed in detail. The part of information focuses on the role of information in the business decision making along with the types of information system and the importance of the quantities decision making is discussed in detail. The last part is based on finance and in this part importance of marginal and breakeven analysis is discussed in detail along with the advantages of cash flow forecasting. The financial and the graphical analysis is also discussed in detail.

Discussion

Performance

The operations play a significant role in the selection and implementation of the business strategies. There are basically four areas of the responsibility, supervising staff, project management, working with the clients and acting as a resource. The primary role of the business operation and its management is to resolve the daily issues and also motivating the working staff in order to improve their customer service. Understanding the goals of an organization and developing a clear vision is very important because it will develop a clear vision of exactly how the organization will achieve its goals. Development in the operation strategy so that management would have the set of guidance (Anderson, 1989, p.133-158) in order to get align with the goals of the organization. Planning and controlling is also necessary in order to get involve what operation resources should be done and also making sure that if it is getting done or not. Improvement in the performance of the operation is also an important aspect because the managers of the operations are expected to monitor continuously and improve the overall performance of the operations. Clear vision is set of the direction what an organization wants to achieve in the long term so that an organization would have the set of the direction where it wants to be in future. Employees reward is also important because motivation is foremost important aspect therefore employees who have worked tirelessly worked should be rewarded that will enhance their ability and capability of working and making them loyal towards the organizational goals. If the organization lack in such aspects then organization ...