Financial Management Challenges
BUS 650 Managerial Finance
Prof. Kevin Kuznia
July 29, 2013
To understand the challenges that face a financial manager today it is important to understand the general characteristics of market structures and the impact of market liquidity, competitiveness, and efficiency on financial managers. Clarifying market structures will show the basic constructs that financial managers work under. With the basic understanding of market structures and how they influence financial managers or how financial managers influence their given market structures we will identify two problems that are faced in current markets chosen from two Proquest articles, the first problem discussed will be …show more content…
Managers can easily be geographically separated on separate halves of the hemisphere. There is less one on one interaction which causes understanding to falter. It is more important than ever to be on the same page as to the vision and goals of the company.
To fix any kind of problem the first step is to identify the problem. In this case it would be to find where the communication breakdown is which can vary depending on the individual variable involved . From there financial managers can tailor a fix to their individual problem. This can be an easy fix to a seemingly complex issue that can easily put a company down if the proper attention is not given to it.
Possibility the biggest problem facing financial managers today is that of an economical recession worse than any we have experienced in over 50 years (Nummy, Levergood, & Hudson, 2011). The recession has caused unemployment rates to skyrocket and age old companies to fail. The liquidity of almost all organizations assets were affected since there was less supply, demand, and cash. This economic stagnation also impacted the ability of organizations market efficiency since there was less assets and cash flow. This recession has been brought about by the mismanagement of the global economy and lack of balance which has disrupted the normal market structure. There needs to be a balance of goods and services traded