Why Finance Gets Strategic

Why Finance Gets Strategic

"According to a report by global employee health solutions firm Vielife and London South Bank University (LSBU), financial directors showed a greater belief that employment matters, in general, have an impact on future organisational performance than their HR counterparts."

Why financial professionals are reportedly ahead of human resources pros in understanding the connection between people and business performance could be an interesting analysis in itself. I can see a number of good reasons why finance "gets" strategic human capital management and I think there are some important implications:

• Shifting Business Basics. Financial training and practice creates an acute sensitivity to business inputs and outputs, yet historically those inputs and outputs were "things." Inventory was the key input/output and, to be honest, finance did not give HR much attention. Direct labor on the automated shop floor was at best a relatively undifferentiated commodity and at worst, a drag on margins to be minimized. However, as the value drivers of business have shifted from things to people, finance has naturally shifted its gaze to understanding the new inputs, which are people, and their outputs. "Employment matters" are now business matters, and have come under more financial scrutiny.
• Increasing Labor Costs. Finance by nature and training tends to be very cost-aware, if not hypersensitive, to the cost drivers of a business. As labor costs increase in both absolute and relative terms, finance's attention is naturally drawn to that area and analysts start to dig in to understand the source, nature, and purpose of those costs. Where there is cost, there is finance.
• Changing Role of Finance. Finance as a discipline has spent the last 20-plus years shifting its own role in the enterprise from "bean counter" to business leader. This journey has led finance to grow beyond its traditional core competencies of accounting and financial reporting to create models, tools, and metrics to enhance its ability to understand and provide insight into the whole business.
• It's Personal. As noted above, finance has been keen to move beyond its accounting and administration heritage to become a valued business partner. This, in turn, has caused a large and fundamental shift in the talent and skills needed to be an effective finance organization. At every single financial executive conference I have attended over the last decade, a good amount of agenda time was dedicated to the talent acquisition, development, and retention requirements for building and running a highly performing finance shop. Finance has a very selfish reason for focusing on "people issues."

The leading implication of all this is that strategic HR concepts and ideas are crucial to business success today. The finance departments that are aligned with the above reasons have undertaken the transformation necessary to become strategic business partners. We see it with our own customers: As Workday announced today, Sallie Mae selected Workday Financial Management and HCM because it understands the correlation between HR and finance and the value of a unified platform, and it required tools that will allow it to get real-time information about its workforce that impacts critical management decisions.

Many, many more finance departments are either in process of or have yet to begin the transformation journey. So we, as a finance profession and discipline, need to continue to invest in talent and systems capable of improving our ability to understand and measure the investment in and contributions of human capital.

For HR, there is an incredible opportunity to deliver business value (who better to drive strategic HR initiatives?), but to do this HR must continue to evolve, as has finance, from an administrative focus to a business focus. In short, successful HR people of the future will be business people, and effective HR systems will be business systems.

http://blogs.workday.com/Blog/why_finance_gets_strategic_hr.html

PETANI YANG MALANG 

awal tanam padi di sebuah desa yang bernama sukakerta 03,awalnya para petani kagum meilihat padi  yang telah berusia 1 bulan padi itu tampak baik2 saja dan ketika musim ujan datang, para petani agak gelisah takutnya ada apa2 dengan padi itu, ternyata yang di takut kan para petani itu menjadi kenyataan

hal hasil banyak hama-hama yang berdatangan,contohnya kupu-kupu,keong , tikus juga banyak yang lainya yang bisa menghancurkan pertaniaan yang ada di desa kami,sehingga para petani mengalami kerugian seperti kurangnya penghasilan yang awalnya dalam 1 hektar itu berhasil mengumpulkan padi yang beratnya sampai 4-5 ton,sekarang para petani menangis karena hasil pertanian yang sangat buruk di tahun ini hingga utuang di mana2 untuk membeli obat-obatan yang di perlukan untuk menghilangkan penyakit yang ada dalam padi itu tersebut, sehingga kuarangnya perekonomian yang ada di desa kami,sedih sungguh sedih para petani yang ada di desa saya ini sudah penghasilan panenya berkurang di tambahkan utang yang ada di mana-mana sehingga para petani menjadi sedih karena hasil panen yang tidak memuaskan mereka,sedih memang sedih tapi mau apa di kata nasi sudah menjadi bubur,walau pertanian ancur tapi kebersamaan di antara kami sangat erat mungkin panen ini kurang bagus tapi panen tahun nati pasti akan lebih bagus, karena ada ke kompakan dari kita untuk memulai pertaniaan dengaan cara serentak tidak dengan tahun sebelumnya memulanya dengaan cara dulu mendului mungkin cara yang tahun kemarin membuat pertaniaan kita menjadi tidak bagus,dalam artian pertanian kita di tahun ini merosot derasti awalnya dalam 1 hektar dapet 4-5 ton sekarang menjadi 2-3 ton sehingga masyarakat di desa saya ini menjadi sedih melihat hasil pertanian yang tahun-tahun semakin merosot sehingga harga beras pun naik, karena kelangkaan padi yang bisa untuk di peroses menjadi beras sangat langka memang di tahun ini beras karena semakin lama dan lama pertanian di indonesia ini semakin berkurang karena bayaknya sawah-sawah yang di jadikan untuh pembuat pabrik-pabrik,rumah-rumah serta untuk pembuatan gedung-gedung pencakar langit sehinga para petani menjadi kebingungan untuk memperluas pertanian mereka yang semakin hari semakin meyempit karena banyaknya pembangunan yang ada di indonesia ini dengan mengggunakan lahan persawahan,sehingga para petani nati mau makan apa misalnya sawah-sawah mereka di jadikan, pabrik-pabrik,perumahan, ya tuhan kasia  sekali para petani itu sudah gagal dalam pertanian,di usir juga dengan cara perlahan supaya pertanian di indonesia menjadi bangkrut, dan hancur tapi jangan khawatir semau itu pasti ada jal keluarnya

wasalam tulisan dari saya salah hanya milik saya pribadi dan ke benaran hanya milik allah

BALANCE SHEETS

BALANCE SHEETS

Balance Sheets

A balance sheet is a snapshot of a business’ financial condition at a specific moment in time, usually at the close of an accounting period. A balance sheet comprises assets, liabilities, and owners’ or stockholders’ equity. Assets and liabilities are divided into short- and long-term obligations including cash accounts such as checking, money market, or government securities. At any given time, assets must equal liabilities plus owners’ equity. An asset is anything the business owns that has monetary value. Liabilities are the claims of creditors against the assets of the business.

What is a balance sheet used for? 
A balance sheet helps a small business owner quickly get a handle on the financial strength and capabilities of the business. Is the business in a position to expand? Can the business easily handle the normal financial ebbs and flows of revenues and expenses? Or should the business take immediate steps to bolster cash reserves?

Balance sheets can identify and analyze trends, particularly in the area of receivables and payables. Is the receivables cycle lengthening? Can receivables be collected more aggressively? Is some debt uncollectable? Has the business been slowing down payables to forestall an inevitable cash shortage?

Balance sheets, along with income statements, are the most basic elements in providing financial reporting to potential lenders such as banks, investors, and vendors who are considering how much credit to grant the firm.

1. Assets  Assets are subdivided into current and long-term assets to reflect the ease of liquidating each asset. Cash, for obvious reasons, is considered the most liquid of all assets. Long-term assets, such as real estate or machinery, are less likely to sell overnight or have the capability of being quickly converted into a current asset such as cash.

2. Current assets  Current assets are any assets that can be easily converted into cash within one calendar year. Examples of current assets would be checking or money market accounts, accounts receivable, and notes receivable that are due within one year’s time.

• Cash  Money available immediately, such as in checking accounts, is the most liquid of all short-term assets.

• Accounts receivables  This is money owed to the business for purchases made by customers, suppliers, and other vendors.

• Notes receivables  Notes receivables that are due within one year are current assets. Notes that cannot be collected on within one year should be considered long-term assets.

3. Fixed assets  Fixed assets include land, buildings, machinery, and vehicles that are used in connection with the business.

• Land  Land is considered a fixed asset but, unlike other fixed assets, is not depreciated, because land is considered an asset that never wears out.

• Buildings  Buildings are categorized as fixed assets and are depreciated over time.

• Office equipment  This includes office equipment such as copiers, fax machines, printers, and computers used in your business.

• Machinery  This figure represents machines and equipment used in your plant to produce your product. Examples of machinery might include lathes, conveyor belts, or a printing press.

• Vehicles  This would include any vehicles used in your business.

• Total fixed assets  This is the total dollar value of all fixed assets in your business, less any accumulated depreciation.

4. Total assets  This figure represents the total dollar value of both the short-term and long-term assets of your business.

5. Liabilities and owners’ equity  This includes all debts and obligations owed by the business to outside creditors, vendors, or banks that are payable within one year, plus the owners’ equity. Often, this side of the balance sheet is simply referred to as “Liabilities.”

• Accounts payable  This is comprised of all short-term obligations owed by your business to creditors, suppliers, and other vendors. Accounts payable can include supplies and materials acquired on credit.

• Notes payable  This represents money owed on a short-term collection cycle of one year or less. It may include bank notes, mortgage obligations, or vehicle payments.

• Accrued payroll and withholding  This includes any earned wages or withholdings that are owed to or for employees but have not yet been paid.

• Total current liabilities  This is the sum total of all current liabilities owed to creditors that must be paid within a one-year time frame.

• Long-term liabilities  These are any debts or obligations owed by the business that are due more than one year out from the current date.

• Mortgage note payable  This is the balance of a mortgage that extends out beyond the current year. For example, you may have paid off three years of a fifteen-year mortgage note, of which the remaining eleven years, not counting the current year, are considered long-term.

• Owners’ equity  Sometimes this is referred to as stockholders’ equity. Owners’ equity is made up of the initial investment in the business as well as any retained earnings that are reinvested in the business.

• Common stock  This is stock issued as part of the initial or later-stage investment in the business.

• Retained earnings  These are earnings reinvested in the business after the deduction of any distributions to shareholders, such as dividend payments.

6. Total liabilities and owners’ equity  This comprises all debts and monies that are owed to outside creditors, vendors, or banks and the remaining monies that are owed to shareholders, including retained earnings reinvested in the business.

 http://www.businesstown.com/accounting/basic-sheets.asp

CONCLUSION :

A balance sheet, or statement of financial position, provides a snapshot of a company'sassets and liabilities at a given point in time. It also shows shareholders' equity, the net value of the company, by taking the difference between the company's assets and liabilities. The balance sheet is one of the four basic financial statements, and is the only one which applies to a single point in time (as opposed to a given period).

Conceptually, the balance sheet is based on the accounting equation, which states that the total amount of assets must balance the total amount of liabilities and owner's equity: Assets = Liabilities + Owner's Equity. Hence the balance sheet is divided into these three primary sections.

Each of these sections displays the various accounts that contribute to it. For example: Cash, Inventory and Machinery are assets owned by a company -- and therefore they are shown under the "Assets" section of the balance sheet. Similarly, Accounts payable and Mortgages go under the "Liabilities" section. Even though the three primary segments do not vary from one company to the next, the accounts that constitute each segment could vary depending on the type of the business. For example, a service-oriented firm such as Goldman Sachs does not display "inventory" on its annual balance sheet -- however, that is not the case with General Electric, a manufacturing firm.

Accounting Overview

Accounting Overview

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The accounting industry has much to offer in terms of opportunities, professional development, and exciting career paths. To be successful in an accounting position one must possess strong analytical abilities, be detailed-oriented, and have the ability to work very quickly and adeptly with numbers. Moreover, those who are the most successful possess not only strong analytical abilities, but also the
1 This handout is prepared with the direct assistance of “Vault Career Guide to Accounting,” and various other sources. For more information about a career in accounting, please refer to Kresge Database.

ability to synthesize, interpret and develop applicable business strategies utilizing financial data. Thus, a career in accounting offers its professionals the opportunity to challenge themselves, work closely analyzing financial data and provide significant value-add to corporations, governments and organizations around the world.

A career in accounting can entail many different specific job functions ranging from an audit or tax-consulting career with a public accounting firm, to an accounting position with an industrial company, to a position with the Government Accounting Office or a non-profit organization.  
Types of Accounting:
As noted above, accounting organizations provide a range of services. Traditionally, the two primary services provided are audit and tax. However, many accounting firms have grown their advisor services to offer: corporate finance, risk management, transaction services, business process outsourcing, people and change consulting, IT advising, and personal financial planning. - Audit: An auditor examines the financial statements of a company or organization and independently certifies the statements are valid, accurate, and relevant. Additionally, an auditor often also provides advisory services such as recommending ways to improve profitability, etc. - Tax: Accountants who provide tax services primarily create strategies to minimize tax liabilities for their clients. Additionally, they prepare tax returns, advise on tax laws, assure clients tax law compliance, etc. - Advisor: The advisor role within public accounting serves to analyze key data issues, patterns and trends to identify implications, and improve efficiency and effectiveness for clients. The division of specialty that fall within the advisor line of service differs among the firms. Types of Accountants:

-  Public Accountants: Public accountants generally work for a public accounting firm (for example: Ernst & Young) and provide accounting services to companies, governments, etc. Large public accounting firms provide the range of services discussed above in “Types of Accounting,” and because public companies are required to have yearly audits, a large part of public accounting firms’ business is providing auditing services to public companies.

-  Private Accountants: Private accountants work directly for a company, government or non-profit organization. They receive their paycheck from the organization for which they are providing accounting services (for example: Internal Accountant at Kraft Foods). Generally, these accountants prepare the financial statements for the public accountants to audit and certify. Additionally, private accountants may also prepare their company’s tax statements, consult its management on changing accounting principles and ensure the financial integrity of the company’s business transactions.  
Changes in the Field

While students’ interest in accounting related fields ebbs and flows depending on the economy, a career in accounting has long been considered “recession proof” and offers significant job security. In 2008, Forbes ranked Accounting Executive #4 and Accounting Staff #5 in its list of “10 Most Recession Proof Jobs.” Additionally, the U.S. Bureau of Labor Statistics ranked Accountants and Auditors in the Top 20 Occupations with the most demand for 2006-2016.

Accountants are especially in demand when the economy is in a downturn. This is because in times of economic uncertainty the public becomes distrustful of current accounting and reporting systems, leading to changes in regulation and accounting practices. The collapse of companies such as Enron and Worldcom led to the passage of the Sarbanes-Oxley Act of 2002. The SOX Act enhanced accounting standards for corporations and those auditing corporations and organizations—leading to increased demand for exceptional accountants. With the inception of SOX, public accounting firms began to divest their consulting services to more easily comply with the tighter regulatory scrutiny. However, firms have recently begun to rapidly rebuild their consulting arms and expand hiring to BBAs again. The recent financial crisis calls for even greater accounting scrutiny and stronger accounting standards and offers those entering the accounting field immense potential for an exciting, promising and challenging career.

The median base compensation for the Ross BBAs entering the accounting field in 2010 was $55, 000. At the Ross School of Business, the employers of the highest number of BBAs have consistently included the “Big 4” public accounting firms—Deloitte, Ernst & Young, KPMG, and PricewaterhouseCoopers, as well as mid-tier firms such as BDO, The Rehman Group, and Plante & Moran. In addition to the audit and tax positions available at the public accounting firms, several students each year go to work for industrial employers as accountants and financial analysts. Masters in Accounting

In most states, only licensed Certified Public Accountants (CPAs) may provide qualified public opinions and audits on financial statements. In order to qualify for a CPA license, one must fulfill the education and work experience requirements, and pass the Uniform Certified Public Accountant Examination. Education requirements vary b state, but in most states, 150 credit hours are required to sit for the Certified Public Accounting Examination. Ross students most commonly meet this requirement through a fifth year of education, such as the Masters of Accounting program, at Ross or another institution.
For more information about University of Michigan’s MAcc program, please visit the website: http://www.bus.umich.edu/Academics/MAccProgram/

Source : http://www.bus.umich.edu/StudentCareerServices/resources/CPAccounting.pdf

Target market

Target market

A target market is a group of customers that the business has decided to aim itsmarketing efforts and ultimately its merchandise towards.^[1] A well-defined target market is the first element to a marketing strategy. The target market and the marketing mix variables of product, place(distribution), promotion and price are the four elements of a marketing mix strategy that determine the success of a product in the marketplace.
Once these distinct customers have been defined, a marketing mix strategy of product, distribution, promotion and price can be built by the business to satisfy the target market.

Market segmentations

Target markets are groups of individuals separated by distinguishable and noticeable aspects. Target markets can be separated into:

• Geographic segmentations, addresses (their location)

• demographic/socio-economic segmentation (gender, age, income, occupation, education, household size, and stage in the family life cycle)

• psychographic segmentation (similar attitudes, values, and lifestyles)

• behavioral segmentation (occasions, degree of loyalty)

• product-related segmentation (relationship to a product)^[2]

Strategies for Reaching Target Markets

Marketers have outlined four basic strategies to satisfy target markets: undifferentiated marketing or mass marketing, differentiated marketing, concentrated marketing, and micromarketing/ nichemarketing.
Mass marketing is a market coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer. It is the type of marketing (or attempting to sell through persuasion) of a product to a wide audience. The idea is to broadcast a message that will reach the largest number of people possible. Traditionally mass marketing has focused on radio, television and newspapers as the medium used to reach this broad audience.
For sales teams, one way to reach out to target markets is through direct marketing. This is done by buying consumer database based on the segmentation profiles you have defined. These database usually comes with consumer contacts (e.g. email, mobile no., home no., etc.). Caution is recommended when undertaking direct marketing efforts — check the targeted country's direct marketing laws.

Examples

CVS Caremark’s target market is women since they make up 80 percent of the pharmacy chain’s customers. CVS has marketed its stores to aid women who are constantly multitasking. They recently redesigned 1,200 of its 6,200 stores to women, including shorter wait times for prescriptions, wider and better-lit shopping aisles, and more beauty products.^[3]
The Oreo cookie is a popular cookie in the U.S., known for its two discs of chocolate with a white cream filling. The Double Stuf Oreo cookie is also marketed to U.S. consumers. However, Kraft has formulated a different version of the Oreo to target consumers in China. The Chinese version consists of four layers of long, thin biscuits coated in chocolate. Kraft CEO, Irene Rosenberg, trusts her executives who live and work in China to know what consumers would prefer in order to maximize their profits. In Germany, Kraft is appealing to the tastes and preferences of German consumers by creating dark chocolate products. It is also introducing premium instant coffee in Russia, which is a beverage that is popular to consumers.^[4]
World Wrestling Entertainment’s (WWE) target market is young males. Monday Night RAW is the number one entertainment program on primetime cable among male viewers (2 million+) including the male demographics of 18-34, 18-49 and 25-54. It is shown at 9:00 PM ET to reach its target market.^[5]
Kohl’s department store has a target market consisting of consumers buying for themselves and their families.^[6]

The psychology of target marketing

A principal concept in target marketing is that those who are targeted show a strong affinity or brand loyalty to that particular brand. Target Marketing allows the marketer / sales team to customize their message to the targeted group of consumers in a more focused manner.
Research has shown that racial similarity, role congruence, labeling intensity of ethnic identification, shared knowledge and ethnic salience all promote positive effects on the target market. Research has generally shown that target marketing strategies are constructed from consumer inferences of similarities between some aspects of the advertisement (e.g., source pictured, language used, lifestyle represented) and characteristics of the consumer (e.g. reality or desire of having the represented style). Consumers are persuaded by the characteristics in the advertisement and those of the consumer.

SOURCE :  http://en.wikipedia.org/wiki/Target_market

The Marketing Mix (The 4 P's of Marketing)

The Marketing Mix
(The 4 P's of Marketing)

Marketing decisions generally fall into the following four controllable categories:

• Product
• Price
• Place (distribution)
• Promotion

The term "marketing mix" became popularized after Neil H. Borden published his 1964 article, The Concept of the Marketing Mix. Borden began using the term in his teaching in the late 1940's after James Culliton had described the marketing manager as a "mixer of ingredients". The ingredients in Borden's marketing mix included product planning, pricing, branding, distribution channels, personal selling, advertising, promotions, packaging, display, servicing, physical handling, and fact finding and analysis. E. Jerome McCarthy later grouped these ingredients into the four categories that today are known as the 4 P's of marketing, depicted below:

The Marketing Mix

These four P's are the parameters that the marketing manager can control, subject to the internal and external constraints of the marketing environment. The goal is to make decisions that center the four P's on the customers in the target market in order to create perceived value and generate a positive response.

Product Decisions

The term "product" refers to tangible, physical products as well as services. Here are some examples of the product decisions to be made:

• Brand name
• Functionality
• Styling
• Quality
• Safety
• Packaging
• Repairs and Support
• Warranty
• Accessories and services

Price Decisions

Some examples of pricing decisions to be made include:

• Pricing strategy (skim, penetration, etc.)
• Suggested retail price
• Volume discounts and wholesale pricing
• Cash and early payment discounts
• Seasonal pricing
• Bundling
• Price flexibility
• Price discrimination

Distribution (Place) Decisions

Distribution is about getting the products to the customer. Some examples of distribution decisions include:

• Distribution channels
• Market coverage (inclusive, selective, or exclusive distribution)
• Specific channel members
• Inventory management
• Warehousing
• Distribution centers
• Order processing
• Transportation
• Reverse logistics

Promotion Decisions

In the context of the marketing mix, promotion represents the various aspects of marketing communication, that is, the communication of information about the product with the goal of generating a positive customer response. Marketing communication decisions include:

• Promotional strategy (push, pull, etc.)
• Advertising
• Personal selling & sales force
• Sales promotions
• Public relations & publicity
• Marketing communications budget

Limitations of the Marketing Mix Framework

The marketing mix framework was particularly useful in the early days of the marketing concept when physical products represented a larger portion of the economy. Today, with marketing more integrated into organizations and with a wider variety of products and markets, some authors have attempted to extend its usefulness by proposing a fifth P, such as packaging, people, process, etc. Today however, the marketing mix most commonly remains based on the 4 P's. Despite its limitations and perhaps because of its simplicity, the use of this framework remains strong and many marketing textbooks have been organized around it.

Source  : http://www.netmba.com/marketing/mix/

Conclusion          : Each of the four P’s is a variable you control in creating the

marketing mix that will attract customers to your business.

Your marketing mix should be something you pay careful

attention to because the success of your business depends on

it. As a business manager, you determine how to use these

variables to achieve your profit potential. This publication

introduces the four P’s of marketing and includes worksheets

that will help you determine the most effective marketing mix

for your business.