FINANCIAL MANAGEMENT

International Finance And Financial Management: Blog Section

International Finance And Financial Management: Blog Section

Blog 1: International Value Management

Is Value Management Necessary or Essential? This a mystery question to find if value management is necessary or essential? Value management is a technique which reviews, evaluate project requirements against the means of achieving them, it is a structured approach to clearly, defining and agreeing project objectives that can be best achieved to delivering the required functions without harm to performance, quality and reliability. Depending on the procurement route chosen, it is mostly viewed on a whole life basis. Example Private finance initiative schemes.

Value management is a systematic, multi-disciplinary effort directed towards analysing the functions of projects for the purpose of achieving the best value at the lowest overall life cycle project cost. For 'tactical-acquisition' (low risk, low value) projects a value management exercise is not usually necessary. For 'strategic-security' (high risk, low value) and 'tactical-profit' (low risk, high value) projects, desktop value management studies will often suffice, provided there is input from all stakeholders (Willett 2000).

The value manager will need to establish a general understanding of the techniques and processes involved to allow management of the overall process. This will include scheduling workshops and reviews at appropriate points in the project process.

The value manager will also be responsible for implementing any actions arising from the process. may not be able to appraise their own work critically

• may not be able to introduce fresh and new ideas

• are more likely to confirm that their original approach is the most effective one

 According to (Jehn, 1994), value management brings about conflict and its large scale initiative consumes inconsiderable time and resources which causes delays for the projects while awaiting evaluation. It is expensive to embark as comprehensive training and consulting support is necessary. Because of its cost, it is not advisable to use metrics that are over-complex, therefore using under-complex metrics, its gives a negative outcome and unrealistic result which most times certainly lead to value destruction (Tirole 2006).

I think there is a fatal flaw in value management from an equity perspective. Value management lack the clarity of response to the challenges of efficiency, accountability and equity, because it doesn't clarify the underlying conception of human nature and motivation that underlies each of the paradigms. Stating to respond to these

It was argued opposing the theory that Value management analysis reduces processes, facilities, services, supplies, equipment or products by searching for the cost efficient alternatives which therefore gives a basic functional element Till date, the perfect Valuation model is yet to be invented, no matter which one is used, there are certain drawbacks

Blog 2: International Stock Exchanges & Stock Market Efficiency

Stock Exchange is an organized and permanent market for buying and selling securities. Official Stock Exchanges such a NYSE and LSE implement the sale of securities of major companies. The main functions of the stock exchange are the mobilization of temporarily free funds through the sale of securities, as well as the flow of capital between ...