Benefits of Financial Management

Benefitsof Financial Management

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Thecourse on financial management plays a vital role in the Bachelorsmanagement program by enhancing the provision of in demand financialskills. The course should be a compulsory unit of study. It providesgraduates with the in-demand skills and knowledge in such areas asforecasting, portfolio management, cash handling and management andthe topic on financial analysis to enhance analyze performance oforganizations and maintain their health. Finance is the blood ofbusiness without which businesses cannot survive(Brigham,2004).

Themain topics that should be covered in the course include demand andsupply. The topic is important as the student gets to learn theforces that drive the economy. Second is consumer theory. The topicis important for the student to understand the forces behind consumerdecisions. The fourth is production and cost analysis. The topic willintroduce the student to managerial accounts and enhances theiranalytical capabilities. Fifth is the externalities and public goods.The topic introduces the students to the management of publicproperty and enables them to differentiate between public and privateassets and the major differences between the two sets. Sixth are riskpreferences. The topic will enable the students to understand theimportance of evaluating risks in finance. Besides, they shall learnthe role that risk plays in the pricing mechanisms. Seventh aremarket structures. The topic shall enhance the students understandingof the various markets in the world and the different products soldin the particular markets(Brigham, 2004)

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Asa a conclusion Financial management plays an important role in theeducation and preparation of finance students to face the real worldin addition, the knowledge of the different markets shall enable thestudents to appreciate the importance of economic tools and thepotentialtheyprovidefor solving real world problems. Consequently thecourse should be made a requirement in the Bachelors of managementcourse.

Thehonest company is a company started by Jessica Alba. The HonestCompany was registered in the year 2013, and it is based in LA. Thehonest company is involved in the business of making and providingfor the sale, eco-friendly, non-toxic and affordable products forchildren less than one-year-old. Since its formation, the company hasgrown continuously. In the year 2014, the company announced its needto increase addition 25 million dollars into financing that makes thetotal funding to reach 52 million. Jessica Alba got the idea ofproducing nontoxic baby products after she got her first baby fiveyears ago.She found out that it was difficult to find a product thatdid not contain toxic elements(Brigham,2004).

Consequently,she managed to talk to a friend about the problem and they came withthe idea of producing the products they wanted for their children.The two formulated a plan to make their baby products such asjelly’s, diapers, baby lotions, and skin cares. They used the helpof contract manufacturers in the US. Although they used to sell basedon monthly subscriptions and individual products online, the companyhas moved into the retail of brick and mortar. It is currentlyselling to many stores ranging from Costco to mini boutiques(Brigham,2004).

Themain advantage of using the triple bottom line approach is theability to have a sustainable economy. Sustainability arises from thenotion that by monitoring and reporting on the social, environmentalimpacts, organizations appear to be volunteering to be held publiclyaccountable to a new bottom line that involves giving priority to theplanet, people, and the profits(Brigham, 2004).

References

Brigham,E., &amp Houston, J. (2004).Fundamentalsof financial management(10th ed.). Mason, Ohio: Thomson/South-Western.

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