PB535 – Business and Financial Literacy
Professor: Doctor Nancy Wooden, PhD
January 09, 2012
Behavioral Economics is an extremely important psychology field; it seeks to expand the current equipment that experts use in economics and fund to expose new types of human tendencies that are properly founded in psychological exploration. The Behavior Economics is crucial in operation decision making procedure. The knowledge in corporate and Monetary Literacy is essential for their direct application to Business and Consulting Psychology. Understanding Economic Management consisting of: profit & loss, cashflow, balance bedding, ratios, RETURN ON INVESTMENT, working capital, budgeting, financial organizing, and corporate finance; and Organization Management that features: business technique, strategic industry management, micro-economic analysis, sustainable competitive benefit, strategic setting, diversification, acquisitions, mergers, and technology supervision, will allow the consultant to assist businesses enhance their profits and improve their provider's culture. Organization Management and Strategy
Business Strategy is a management strategy that an organization put in place to be able to achieve a particular goal or possibly a set of goals and objectives, this strategy will help the organization distinguish itself from its competitors. In order for a company to differentiate alone from their rivals, they need to efficiently implement a strategy that will identify the market the business can compete, the investment required, the approaches required to contend in that specific market plus the strategic methods or expertise that underline the strategy by providing a important eco friendly competitive benefit (SCA) (Aaker, 2001). � Budgeting and Financial Planning
There are many vital managerial tools that assist in managing a good business. Spending budget is the most prevalent and traditionally used tool to get planning and control; it is essentially a guideline that is targeted on spending, it might breaks down all the business' expenses in different classes, per example, utilities, salaries, taxes, supplies, equipment, and many others, also all the income the business hope to acquire in a particular period of time, this period of time is generally yearly, monthly or sometimes weekly. Once the manager offers all the predicted income and expenses for the period of time, this will start to take shape. This goal is always to subtract all of the expected bills from the predicted income for the same period and still have a good cash harmony. A budget should not be a strict and fixed tool from where you may by no means deviate (Wood, 2012). The Financial Preparing focuses on allocating resources effectively, specifically obtaining long range desired goals. In summary, while the budget targets the daily functioning with the organization, the future depends greatly for the financial preparing which in turn relies upon budgeting to be effective. Business Finance�
The Corporate Finance addresses how businesses face their very own financial requirement, to smartly invest their very own resources, accomplish the correct mix of financing to fund their assets and go back a profit towards the investors; consequently achieving value maximization. If a company invests in a project or perhaps multiple projects, this task will create expenses and can create income for the company, but what is known as a project? Task is any activity that generates a number of cash flows for the organization. The company uses the earnings in excess of expenses to fund new projects, improve existing assignments or shell out its shareholders (Spiegel, 2000). Per case in point, applying a low-cost approach, businesses may remove almost all frills and extras from its products and services (Aaker, 2001), making the organization more competitive and profitable. Monetary ratios�
The Financial Ratios are functional indicators of your company's economic and performance...
Recommendations: Aaker, G. (2001). Developing business strategies (6th Ed. ). New You are able to, NY: John Wiley and Sons, Incorporation.
Berman, T. & Dark night, J. (2008). Financial Brains For HUMAN RESOURCES Professionals. Boston, MA: Harvard Business Press.
Fernandez-Huerga, E. (Sep2008). The economic habit of people: The institutional/post-Keynesian model. Journal of Financial Issues (Association for Evolutionary Economics, 40 (3), 709-726.
Gitman, M. J. (2009). Principles of managerial financing. (12 male impotence. ). Boston, MA: Addison-Wesley.
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Holden, P. (2010). Economies of scale: a fast explanation [Video file]. Retrieved via YouTube website: http://www.youtube.com/watch?v=AZshS761WsE
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Spiegel, M. (2000). Principles of corporate financial. Unpublished uncooked data, Yale School of Management, Recovered from http://som.yale.edu/~spiegel/intro/sampread.pdf
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Wickramasignhe, V. & Karunaratne, C. (Mar2009). People management in mergers and acquisitions in Sri Lanka: worker perception. Journal of Human Resource Management, 20 (3), 694-715.
Solid wood, N. (2012). Behavioral Economics. �[PowerPoint slides]. Retrieved from http://www.nancywood.org/Business/Behavior/Behavioral.pptx