Due:Thursday 3 October 2018 Weighting:15% of total grade Format:700-word reflection (plus or minus 10%) Background In preparation for this assignment, read the following article: Denning, S 2015,...

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  • Due:Thursday 3 October 2018
    Weighting:15% of total grade
    Format:700-word reflection (plus or minus 10%)


    Background

    In preparation for this assignment, read the following article:



    Denning, S 2015, ‘Salesforce CEO slams 'The world's dumbest idea': maximizing shareholder value’,Forbes,https://www.forbes.com/sites/stevedenning/2015/02/05/salesforce-ceo-slams-the-worlds-dumbest-idea-maximizing-shareholder-value/#5daebc087883



    The goal of financial management in a for-profit organisation is to make decisions that increase the value of the shares or increase the market value of the equity. However, this goal was criticised by above article.


    Reflection question

    Read the above article and relate it back to the knowledge gained from topic 1 regarding the goal of financial management. In this task, we ask you to reflect on the goals that should motivate your actions as the manager of the company.


    Can your goal of maximising the value of the share conflicts with other goals? Do you think matters such as employees’ safety, the environment and the welfare of other stakeholders fit in this framework, or are they essentially ignored? Try to think of some specific scenarios to illustrate your answer. What challenges you faced in dealing with the situation and how you handled the situation. What have you learnt from this experience?





  • Reflective Practice Requirements



    • The required word length for this assessment is700words (plus or minus 10%).




    • Your report will be marked according to the criteria outlined in the assessment grading criteria outlined in the Subject Outline.




    • In terms of structure, presentation, and style you are required to use:

      • AIB standard report format

      • Also, refer to theGuide to Reflective Practicefor further information and guidance on writing for critical reflection.

      • AIB preferred Microsoft Word settings

      • author-date style referencing (which includes in-text citations plus a reference list).
        These requirements are detailed in theAIB Style Guide.







    • Acknowledge the sources of facts appropriately. Use a minimum of two (2) references.




    • All references must be from credible sources such as books, industry-related journals, magazines, company documents and recent academic articles.



    • Your grade will be adversely affected if your report contains no/poor citations and/or reference list and if the word length is beyond the allowed tolerance level (seeAssessment Policyavailable on AIB website).




    • Useful resources when working on your report include:



Answered Same DaySep 30, 2020

Answer To: Due:Thursday 3 October 2018 Weighting:15% of total grade Format:700-word reflection (plus or minus...

Sarabjeet answered on Oct 02 2020
151 Votes
Financial Management
1
Financial management
Student Name
University Name
Unit Name
Unit Code
Contents
Can your goal of maximizing the value of the share conflicts with other goals?    3
Do you think matters such as employees' safety, the environment and the welfare of other stakeholders fit in this framework, or are they essentially ignored?    4
References    6
Can your goal of maximizing the value of the share conflicts with other goals?
I think the benefits of these topics are commendable, but most importantly, the goal of any company should be to maximize the shareholder value within the legal boundaries. There is no obligation for ethics or ethics. Many companies spend a lot of money to prove what they think of all stakeholders, not only think about shareholders, but most people will not do so until they pay for doing so Do it. Yes, the goal of maximizing the stock value can seriously reduce the goal of avoiding unethical or illegal behavior, because some managers can earn the profit, even if their work is illegal. Yes, I believe that the security of the customers and employees, the overall interest of the environment and society are in line with the structure to maximize the stock price. For example, a manager of a pharmaceutical company can not disclose that a certain type of drug can increase the risk of developing cancer because it wants to increase the stock sales. In this case, concerns about customer safety and social welfare are completely ignored (Shin and You, 2016).
The goal of maximizing stock value does not conflict with the requirement to comply with ethical behavior. In fact, ethical companies may increase company value. This is because the company's share price is considered to reflect the collective judgment of all market participants...
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