APPLIED FINANCE AND ACCOUNTS

Applied finance and accounts

Applied finance and accounts

Introduction

Financial planning plays an important role in determining the capital requirement for the business under particular business decisions and its intensity of competition. This process is referred to developing policies or rules in contrast with procurement, administration and investment of the business funds. Therefore, this can be said that financial planning posses importance for business in leading it to success and failure of the business.

In today's competitive environment, strategic management plays a vital role for organisation's success and future stability. Successful organisations are able to sustain and obtain its resources and capabilities which leads to competitive advantage, strategic management is referred to process of evaluating organisation resources, evaluating external an internal environment and developing strategies accordingly to sustain in a competitive environment with edge (Harrison & St John, 2009, pp.4).

(Hill & Jones, 2007, pp.6-7) Argues that strategies are not developed, under consideration of organisation. Managers develop strategies for their companies in order to retain customers and add potential customers from their competitors. And in this tough competition winner is the one, who implemented best strategy. This gives such organisations competitive advantage over their competitors. They further discussed the organisation may attain sustained competitive advantage by implementing strategies, which gives them above average profit.

Therefore, the organisations with better and profound strategies can have a distinction over their competitors. In the later paper the strategies of Webmaco Enterprises will be discussed and based on facts its performance will be analysed.

Discussion

After analysing the business condition of the Webmaco it is identified that the business is into fashion products and these products life cycle is short as compared to other products and in intense completion business needs to develop effective strategy to lead the competition and maximise sales and growth of the business. There are various factors that need to be considered. First among them is external factor analysis.

External environment of the business

Any activity in the organisation is influenced by the external environment of the organisation. For any organisation, it is necessary to identify the important external factors which can affect the organisations' activity. External factors are categorised in four types; political and legal factor, the policies or political environment which can affect the business operation; economical factors includes the growth of the economy such as GDP, exchange rate, inflation rate and banking or investing policies; socio-cultural factors includes the customer's preferences, change in cultural values and income distribution pattern etc.; technological factors such as research and development expenses, new technology in the industry etc. (Analoui & Karami, 2003, pp. 74).

By analysing Webmaco Enterprises it is found that most essential factor that can effects the business is use of technology. E-commerce is playing significant role in development of business over internet and internet and e-commerce is found to be the factors that are affecting the business growth. After identifying the deficiency, Wemaco effectively reduced it lacking in this area which not only increased their visitors and also increased their ...