Financial Management Challenges
BUS 650 Managerial Finance
February 24, 2015
In order to understand the different challenges that financial managers are faced with in today’s society, it is imperative to understand the characteristics of the market structures and the influence of the market liquidity, competition and competence on financial managers. The market structure has a great influence on financial mangers. Financial managers are faced with many issues due to the market structure however; the ones that will be discussed in this paper are the communication issues and the economy.
“Liquidity refers to the ability to sell security quickly without having to offer a substantial price reduction to attract buyers” Financial managers have to consider their current market structure as well as the cost of the market they are entering. Financial mangers also have to take into consideration how other companies are affected and how the market is impacted by their involvement.
“How to succeed in today's rapidly changing competitive environment is a question weighing heavily on many a manager's mind. Everything seems to be changing--markets, customer demands, technologies, global boundaries, products, and processes. In the midst of this seemingly overwhelming change, managers are being asked to make critical competitive decisions that will affect not only the present position of their firm (the legal or competitive entity), but also its future success.” (Bart, Boynton, & Pine, II, 1993)
The competition is known as the products and the availability of these products and the cost of each. Market efficiency is the effortlessness used to function with the right ratio of supply and demand.
According to the article “Managerial Challenges Among Marketing, Sales, and Finance Actors” Dr. Weissbrich discusses one of the main issues that financial managers are faced with today. In this article, Dr. Weissbrich states the following:
“A first key managerial challenge we identified was to reach high levels of mutual understanding…marketing, sales and finance differ in their attitude, personality, focus and goal orientation. We also learned that classical stereotypes and clichés do exist with respect to the functional managers in marketing, sales, and finance.” (Weissbrich, D., & Krohmer, H. 2011).
The issues among financial management must first be identified in order to find a solution. One of the main issues is reaching...