Corporate Financial Management Select Harvests Limited

Question: Discuss about theCorporate Financial Management for Select Harvests Limited. Answer: Introduction For this research paper, I would like to choose Select Harvests Limited (SHV) as a research company. The firm is listed on Australian Stock Exchange (ASX). SHV is the biggest nut and health food company of Australia. Along with this, Select Harvests is the third largest almond grower and processor in the world. SHV manages almond orchards in South Australia, Victoria, and New South Wales. The firm also manufactures a large variety of food snacks and muesli (Select Harvests. 2016). In addition to this, Select Harvests is divided into two business sectors: almond business and food business. Moreover, Paul Thompson is the CEO (Chief Executive Officer) of the firm. Paul Chambers is the CFO (Chief Financial Officer) and Company Secretary of Select Harvests. The CEO and CFO of the firm play an important role for the success and growth of the organization. This research paper is helpful to represent the general areas of responsibility for the chief financial officer of the Select Harvests. In addition, the research paper also portrays that the responsibilities of the CFO can influence ultimate objective of the firm. General Areas of Responsibility for Chief Financial Officer The chief financial officer of Select Harvests is responsible to accomplish the financial goals and objectives of the firm. Along with this, the CFO of Select Harvests plays numerous important roles and responsibilities to improve the financial performance, market shares, and market position of the firm (Clark, 2012). Moreover, the major general areas of responsibility for the CFO of Select Harvests are described as below: Financial Planning: The chief financial officer of Select Harvests is fully responsible to do effective financial planning to accomplish the financial goals of the firm in a specified time period. In other words, it also can be said that, financial planning is the major area of responsibility for the CFO of the firm. The CFO of Select Harvests makes effective financial plans for the growth and success of the organization (Lapovsky and McKeown-Moak, 2010). Moreover, with the help of these financial plans, the organization makes effective utilization of its available funds and resources. Along with this, the CFO of the organization manages all the financial activities of the firm in an effective and an appropriate manner. The CFO oversees and controls cash inflows as well as outflows of the firm. The CFO is also mindful to keep up straightforwardness in all the monetary exchanges of the association. In addition to this, the CFO of the firm assumes a critical part to pay charges, obligations, and securitie s to enhance the money related execution of the association. The CFO is mindful to set up successful monetary/bookkeeping strategies and systems; so that every one of the association may play out their budgetary commitments in a proper way (Jennings, 2014). Apart from this, the CFO of the firm is capable to build up viable arrangements keeping in mind the end goal to expand the advantages and finances of the association. To raise the capital of the firm, the CFO makes concession on the acquirement of obligation and value capital and keeps up the budgetary courses of action of the business viably. The CFO of firm develops long tern money related arrangements to persuade the employees to achieve budgetary targets that are inborn in these monetary arrangements (Sebastian, 2011). For that reason, it can be said that, the CFO of Select Harvests is completely at risk to deal with all the money related exercises of the business. Accounting Financial Functions: The chief financial officer of Select Harvests is also responsible to develop accounting financial function to improve the financial performance and effectiveness of the organization. The development of the accounting financial functions is also considered as the major area of responsibility for the CFO of the firm. The CFO of Select Harvests creates accounting financial functions to enhance the general monetary and also hierarchical viability of the firm in an effective way (Kaplan and Norton, 2008). In addition to this, the CFO builds up a continuous arrangement of enhancements within the money elements of the firm; so that everyone can play out every monetary capacity in a precise way. Moreover, the CFO is also responsible to use significant monetary techniques for case adjusted scorecard, proportion investigation, dashboards, and so forth keeping in mind the end goal to enhance the anticipated and genuine money related execution of the business. Along with this, the CFO of Sel ect Harvests makes successful correspondence with its shareholders, monetary experts, brokers, and financial specialists to build up a solid notoriety of the firm in their eyes. The CFO appreciates the plan of action of enterprise to make client esteem and to execute all the budgetary capacities in a successful and a precise way (Roehl-Anderson, 2013). On the other hand, the CFO assumes a huge part to adjust the staff into a gathering; so they can play out all the accounting financial functions to enhance the general hierarchical execution of the firm. The CFO of Select Harvests deals with the staff and creates viable strategies, approaches, rules and techniques to play out all the money related elements of the business. Along with this, the CFO is responsible to oversee precision and genuineness in the execution of the bookkeeping and budgetary elements of the firm (Hope, 2013). For that reason, it can be said that, the CFO Select Harvests is fully responsible to create, oversee and plays out all the accounting financial functions of the firm in a viable and an exact way. Financial Risk: The chief financial officer of Select Harvests is also responsible to know the financial risk that may harmful for the financial growth of the organization. In other words, it can be said that, the CFO of Select Harvests is completely dependable to acknowledge and gather money related risks to enhance the monetary execution of the association (Moran and Kral, 2013). Along with this, the CFO is also responsible to have complete learning of all the bookkeeping financial frameworks that are utilized by the firm. The primary purpose for it is that, with the assistance of top to bottom information, the CFO would have the capacity to discover any risk that may occur in the money related zones of the business. Moreover, the CFO of Select Harvests is mindful to create risk mitigation methodologies to enhance the monetary capability of the firm. On the other hand, it should also be noted down that, the CFO of Select Harvests is capable to alleviate various sorts of budgetary dangers that may hazardous for the general execution of the association (Sottini, 2009). For instance, the CFO assumes a noteworthy part to reduce foreign exchange risk in a successful way. The CFO chooses the levels of foreign exchanging, perceives the forthcoming misfortunes and executes supporting techniques so as to lessen outside trade hazard in a suitable way. In addition to this, the CFO assumes an imperative part to lessen the danger identified with the progressions of item costs. Additionally, so as to deal with the item costs' progressions, the CFO makes long haul settled value concurrences with its counterparties. The CFO makes utilization of cost slicing strategies to alleviate the danger in a successful way (Finn, 2016). As a result, it can be said that, the CFO of Select Harvests plays a major role to lessen monetary dangers to enhance the money related execution of the firm. CEOs Responsibilities can Affect the Ultimate Objective of the Organization The CEOs responsibilities can affect the ultimate objective of the organization in both positive and negative way. For case, the CFO assumes a critical part to oversee and control the assets and money streams of the firm in a successful way (Hommel, Fabich, Schellenberg and Firnkorn, 2011). In addition, the CEO is obligated to keep up openness and simplicity in all the money related exchanges of the firm. The CFO makes viable money related wanting to deal with the assets and to keep up honesty in a proper way. Along with this, the CFO creates hazard alleviate techniques to enhance the general money related execution of the business. These all the responsibilities performed by the CFO of firm affect the objective the firm. For case, if the CFO of the firm is capable to play out his duties and responsibilities then the firm would have the capacity to achieve its objectives and targets in an effective way. In opposite to this, if the CFO is unable to perform compelling budgetary arrangi ng, create accounting financial functions, and create hazard moderation techniques then it will impact ultimate objective of the firm contrarily (Nolop, 2012). In this circumstance; the firm would not have the capacity to make powerful uses of accessible assets, oversee and control money streams, relieve budgetary dangers, and perform monetary capacities in a compelling and a fitting way. This will be perilous for the overall growth of the organization. Conclusion On the basis of the above converse, it can be accepted that, the CFO of an association assumes various vital duties and responsibilities to enhance the general hierarchical execution of the firm. Moreover, it can also be said that, the CEOs responsibilities have an effect on the ultimate objective of the organization. In recent times, all the business associations concentrate on the efficient markets hypothesis keeping in mind the end goal to settle on their budgetary choices in a compelling and an exact way. Along with this, it should also be noted down that, nowadays, the efficient markets hypothesis has turned into the most vital source that give all the precise budgetary data of business firms to their financial specialists (Graham and Dodd, 2008). In addition to this, the efficient markets hypothesis depicts that the expenses of securities assume a noteworthy part keeping in mind the end goal to uncover all the accessible money related data of business firms. The efficient markets hypothesis is important to affirm that the money related markets for instance the U.S. security, securities exchange, and so on are equipped or not. On the other hand, the pension fund manager should not choose a portfolio with a pin, if the efficient markets hypothesis is valid. The principle explanation for it is that a portfolio with a pin would be able to offer fulfillment to the clients. At the end of the day, it also can be said that, a portfolio with a pin would not work in the support of clients or speculators. In addition to this, the pension fund manager must choose a portfolio at what time the proficient business sector theory is exact and securities are very much valued. In this circumstance, the pension fund manager may pick a portfolio at the precise danger level for the financial specialists (Tyson, 2016). Along with this, the efficient markets hypothesis does not intend to pick a portfolio with a pin. The pension fund manager should not just consider the effective markets theory keeping in mind the end goal to pick a portfolio. The fundamental explanation for it is that distinctive supplies of the closely resembli ng industry are not broadened in a viable and proper way. Apart from this, it ought to be noted down that, an all around broadened portfolio assumes a critical part keeping in mind the end goal to moderate hazard and to amplify returns on the financial specialists' ventures. On the other hand, the pension fund manager ought to pick a portfolio on the premise of the level of danger and return. The portfolio that is not so much dangerous but rather more practical would have the capacity to enhance the fulfillment level of the financial specialists. In addition, the pension fund manager must pick a portfolio on the premise of pre-decided rules and techniques. As indicated by these rules, the chief must pick a portfolio that is all around broadened. The supervisor must take mind that the danger level of the chose portfolio is fitting for the clients. The pension fund manager ought to take mind that a substantial number of stocks might be deficient to guarantee expansion of a portfolio. These rules and methodology would be useful to make powerful determination of the portfolio (Brealey, Myers, Allen and Mohanty, 2012). For that reason, it can be said that the pension fund manager must pick a portfolio on the premise of the level of risk and return in preferen ce to the efficient markets hypothesis. References Brealey, R.A., Myers, S.C., Allen, F. and Mohanty, P. (2012). Principles of Corporate Finance. NY: Tata McGraw-Hill Companies Inc. Clark, R.M. (2012). Intelligence Analysis: A Target-Centric Approach. Australia: CQ Press. Finn, A. (2016). MBA In A Week: All The Insights Of A Master Of Business Administration Degree In Seven Simple Steps. UK: Hachette UK. Graham, B. and Dodd, D.L.F. (2008). Security Analysis (6th ed.). 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