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BA---5223-1D2-FA-2022 - Executive Communication 1 sets Week 2 Discussion: Chapter 4 - Exercise 14 (LO1, LO2) Select a Fortune 500 company and evaluate their presence on social media platforms. Which of the guidelines in “Staying Connected on Social Media Sites” (pages 142–143) have they followed? Which guidelines have they ignored? (And can you assess if there is a philosophy behind why they’ve ignored them?) With record-breaking sales of $572.75 billion in 2021, American retailer Walmart topped the Global Fortune 2022 list for the eighth year in a row. Walmart isn't missing a beat, with accounts on every major social network as well as YouTube, Pinterest, LinkedIn, and a slew of regional sites. Walmart's social media presence is multi-functional, serving both promotional and brand-building purposes. Only one or two posts per day are allowed. In addition to utilising Facebook to connect with external stakeholders like consumers and the public, Walmart is also using it to connect with its internal stakeholders like employees. Up to this point, Walmart has tweeted around 557.9 thousand times. As with Facebook, it tweets about a variety of topics in addition to promotions designed to boost sales and spread the word about seasonal bargains. As an added bonus, Walmart's Instagram account has 2.2 million followers. The corporation has been employing Instagram influencers as a form of advertising. Instagram is not used exclusively for product advertising or marketing efforts at Walmart, as was the case with Facebook and Twitter. Since social media is interactive, the best practise for most businesses is to "Stay Connected on Social Media Sites." With the connections to the sites prominently displayed across various social media channels, it complies with the recommended practises for facilitating communication amongst fans. Walmart has broken a lot of rules. There are a number of issues with their approach to social media, not the least of which is the fact that they utilise too many keywords and don't make an effort to keep the dialogue continuing by soliciting feedback from their audience while posting on several different channels. Online shopping malls like Walmart.com rely heavily on keywords. They are used in the names, descriptions, characteristics, photos, and videos of your products so that customers can easily locate them (Vithayathil et al., 2020). References Vithayathil, J., Dadgar, M., & Osiri, J. K. (2020). Social media use and consumer shopping preferences. International Journal of Information Management , 54 , 102117. https://www.sciencedirect.com/science/article/pii/S0268401219314446 Financial Modeling 2 sets
Week 2 Discussion Forum (200 Words) Copy 1 What is Financial Modeling? What is meant by projection, forecast, pro forma, model, Responsible Party? A financial model is a tool used to predict the financial outcome of a project or company by analysing and interpreting data about the project's or firm's expected growth and risk. For the purposes of this description, a projection may be anything that is exhibited at a distance, anything that stands out, any estimate or forecast based on current facts, or any assumption that another person shares your sentiments or feelings (Crépey, 2013). Forecasting what will happen in the future is what forecasting is all about. Companies use financial forecasting to make educated guesses about future profits and other metrics. Pro forma is Latin meaning "for form's sake" or "as a formality." A model may be either a prototype for a new product or a live human being used to showcase clothing or act as a model for an artist. Signing as a Responsible Party is common practise in many legal instruments, although it is not always clear who or what constitutes a Responsible Party, or even what the term "Responsible Party" means (Crépey, 2013). What is a Financial Statement? What are the components of that Statement? What is the significance and purpose of each component? Please provide an example of a Financial Statement. Management of a firm compiles financial statements to provide an overview of the company's financial health at the end of a certain time period (quarter, six-monthly, or yearly). Components of financial statements are: balance sheet At the end of the accounting period, the balance sheet presents an accurate picture of a company's assets, liabilities, and equity (Welc,
2022). income statement A firm's profit or loss for a certain reporting period is what the income statement is all about. cash flow statement The Cash Flow Statement illustrates the specifics of such transactions during an Accounting Period. How much money is coming into and going out of the company is laid bare. Example
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References Crépey, S. (2013). Financial modeling. A Backward Stochastic . https://link.springer.com/content/pdf/10.1007/978-3-642-37113-4.pdf Welc, J. (2022). Financial statement analysis. In Evaluating Corporate Financial Performance (pp. 131- 212). Palgrave Macmillan, Cham. https://link.springer.com/chapter/10.1007/978-3-030-97582-1_3 Copy 2 What is Financial Modeling? What is meant by projection, forecast, pro forma, model, Responsible Party? Probable financial outcomes may be predicted via financial modelling, which takes into account past performance as well as estimates of future income, costs, and other factors (Easton et al., 2018). Feelings are projected onto another person, animal, or inanimate thing. The ability to accurately predict future events is crucial for running a
successful company. Companies of all shapes and sizes may benefit from forecasting because it allows top executives to foresee shifts in key performance metrics like sales projections and customer behaviour. Pro forma financial statements are financial reports published by an organisation that make assumptions or use hypothetical circumstances to account for possible outcomes of events in the past or future. A model is a physical depiction of an item used to demonstrate its appearance or functionality. In contrast to a nominee, who is granted little influence over the entity's assets, the "responsible party" controls, manages, or directs the entity and the disposal of the entity's finances and assets (Handayani et al., 2016). What is a Financial Statement? What are the components of that Statement? What is the significance and purpose of each component? Please provide an example of a Financial Statement. The financial statements are an organization's summaries of its income, expenditures, and cash inflows and outflows for a certain time period. The three financial statements are the income statement, balance sheet, and statement of cash flows. Components of financial statement Balance sheet The assets, liabilities, and shareholder capital shown on a company's balance sheet give an instantaneous picture of the company's financial health. Income statement The net profit or loss for a certain time period is shown in the income statement, which is a results-oriented report. It details the sum of all income and all costs incurred during the time period in question, allowing one to deduce whether or not a profit was made during that time (Handayani et al., 2016). Cash flow Cash flows into and out of a company should be described in detail on the cash flow statement. In it, the sources and uses of cash for a certain accounting period are detailed. Example
References Easton, P. D., McAnally, M. L., Sommers, G. A., & Zhang, X. J. (2018). Financial statement analysis & valuation . Boston, MA: Cambridge Business Publishers. https://www.fau.edu/graduate/documents/graduate/faculty-and-staff/graduate- council/docs/03212019/NCP-ACG5176.pdf
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Handayani, H., Tarjo, T., & Rimawati, Y. (2016). Correlation of financial statement components in detecting financial fraud. Asia Pacific Fraud Journal , 1 (2), 275-300. http://www.apfjournal.or.id/index.php/apf/article/view/24
Principles of IT Risk Management What is the relationship between quality assurance and quality control and explain how they are used to improve project quality. Maintaining compliance with regulations is an essential part of quality control. The standards of quality assurance are not related to the unique specifications of the product under development. Prior to starting manufacturing, quality assurance measures are planned out and carried out all along the development process. Quality control, on the other hand, occurs after product development (Glauber et al., 2021). What statistical tool would you use for quality assurance and why? Histogram Instantly visible but often disregarded quality improvement techniques are bar charts and histograms. They may provide you with a profound assessment of the situation. Simple quality methods like tally charts may be used to gather data for CPI, but this data has to be analysed in order to be useful. A histogram or bar chart, excellent tools that many of us would be acquainted with from school, is one of the easiest tools to achieve this with. How frequently each value in a piece of data is recorded is shown using a frequency distribution. To visualise frequency distributions, a histogram is the go-to graph. A bar chart's visual resemblance is unmistakable, yet it differs in key respects. One of the seven fundamental quality tools, it helps gather and analyse data. Reasons : A glance at the data may be gleaned from the diagrammatic depiction. It simplifies the depiction of a process chain. Facilitates straightforward communication of outcomes of decisions. Suitable for use in a wide variety of industries and professions, including manufacturing, service, academia, and more. When is it appropriate to use cause-and-effect diagram (fish bone)? A cause and effect diagram is a kind of diagram that can help you figure out what
happened and why. Its name implies that its primary function is to aid in linking the observable consequence of a problem to its underlying cause. First in a series of screening tools, the Fishbone chart helps identify potential issues. After a possible root cause has been identified, more testing must be done to validate it. This strategy may be used to any issue and modified to meet the needs of the practitioner (Glauber, 2021). References Glauber, J., Baldwin, K., Antón, J., & Ziebinska, U. (2021). Design principles for agricultural risk management policies. https://www.oecd-ilibrary.org/agriculture-and-food/design-principles-for-agricultural- risk-management-policies_1048819f-en Assignment Discuss capital budgeting and time value of money (TVM). Given that not every possible investment will provide a positive return, businesses use the accounting concept of capital budgeting to choose which projects to fund. Decisions to invest in projects with a positive net present value are all that go into a capital budget. This may include anything from adding new hardware to your network to acquiring enterprise resource planning (ERP) software or even merging with another technology business. Most capital planning decisions are made using either the payback period, the internal rate of return (IRR) technique, or the net present value (NPV) method (Kengatharan et al., 2016). Changing value of money over time is referred to as time value of money or TVM. This is the advantage of being paid immediately rather than waiting. Which is a pretty commonsense idea, right? TVM is simply saying that today's dollar is worth more than tomorrow's, so it's not hard to see why. Spending money now means missing out on the potential to invest it and earn interest tomorrow, which might help offset the effects of inflation and other risks. Prices for goods and services won't be the same next year as they are now. The present value is established with the use of a discount factor and a time frame. When combined, discounting and compounding allow one to "move money back through time" via the former and "forward via time" with the latter. Explain why time value of money is important to capital budgeting. Capital budgeting relies heavily on the ability to predict the future worth of a dollar or other currency. When creating a budget, it is necessary to make choices about where and how money will be spent. If a person or company decides to invest money, they will
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not be able to spend that money until the investment yields a profit. It may be a good option if the value of the investment at maturity is higher than the estimated value of the principle after some time has passed. But if the money's expected growth rate is higher than the investment's current worth, it could be preferable to pick a different investment or just retain the cash. Time value of money is a framework for estimating the opportunity costs associated with capital budgeting choices (Daunfeldt et al., 2014). These judgments may be made with a clearer picture of how a potential allocation of funds stacks up against other possibilities thanks to the application of the time value of money. The survival of a firm is important to its ability to fulfil its primary mission of providing its products and services to customers. It's not possible for businesses to throw money at everything that could solve their issues or seem to be a good match for their strategic goals. They need to use caution and discretion when choosing which projects to take on. Investors must consider the cash flow from their TVM investments or risk a negative return on their money. A predicament from which it is difficult, if not impossible, to recover financially. Analyze potential financial investment risks, and explore the relevance of the capital asset pricing model (CAPM) in determining portfolio risks. In finance, the capital asset pricing model (CAPM) is a specialised model used to determine the connection between dividend expectations and the risk of investing in a particular firm. Return expectations may be calculated using the CAPM model. This is analogous to risk-free returns plus a beta factor. When calculating the value of an asset, the beta factor takes into account the total amount of systematic risks that are attached to it (Elbannan, 2015). The dividend discount model (or DDM), another common method for predicting future returns, does not take into account the impact of these dangers. Due to its inherent unpredictability, investors are unable to fully protect themselves against market risk. According to the Capital Asset Pricing Model (CAPM), a bigger premium should be paid for investments or projects with a higher degree of risk. That's very logical, right? Everyone knows the old adage of "greater risk, bigger gain." In other words, if a business borrows money, it will have to pay more in interest if it chooses to invest in a lower-risk project rather than a higher-risk initiative.
There is a wide range of possible outcomes and hazards associated with various methods of accumulating and investing wealth. Investment risks that impact asset prices may be broken down into two broad categories: systematic risks and unsystematic risks, according to standard financial theory. There are two main types of risk that investors face: systematic and unsystematic (Elbannan, 2015). In economics, systemic risks, often called market risks, are those that have the potential to influence the whole market or a significant segment of it. Losing money on investments because of widespread market fluctuations is known as "market risk," and it may be caused by a number of causes, including political and economic uncertainty. In the case of market risk, diversification is not a simple solution. Interest rate risk, inflation risk, currency risk, liquidity risk, nation risk, and sociopolitical risk are all examples of other prevalent forms of systematic risk. The term "unsystematic risk" refers to the kind of risk that is unique to a certain sector or business. Investing in a firm or sector that has a high likelihood of experiencing a loss is called taking on unsystematic risk. A new rival that threatens to grab market share from an established one, a change in management, a product recall, or new regulations might all be examples of such events. Diversification is a common tool used by investors to mitigate the effects of nonsystematic risk (Kuehn et al., 2017). Imagine that you have two projects competing for your team’s time and you need to select the project that will offer the greatest financial return to the organization. Describe the process you would follow to quantify the financial value of each project and the factors that you would consider when selecting the best project for your team to work on. Common considerations for management include the scope of the project, its payback time, the resources at their disposal, and the prospects for development and profit. In contrast, a project manager may have insight into topics such as resource allocation, potential dangers, and the track record of completed projects (Mahr, 2014). Acknowledging the worries of your executive team is a first step in calming their nerves. Meanwhile, you should be aware of your team's strengths and shortcomings so that you may effectively lobby on their behalf. The project manager's responsibility is to listen to the worries of all parties involved, then find and promote solutions to those worries. Factors Cost benefit analysis In project management, a cost-benefit analysis (CBA) compares the expenses and gains of a potential endeavour. Also, it provides a standard against which to measure
the relative merits of different initiatives, making it easier to choose which ones are worth pursuing (Mahr, 2014). Project estimation After a cost-benefit analysis has determined that a project is feasible, an initial estimate must be made using one of the following methods. Time and materials Fixed price estimate . Reserve analysis Cost of quality References Kengatharan, L. (2016). Capital budgeting theory and practice: a review and agenda for future research. Research Journal of Finance and Accounting , 7 (1). https://core.ac.uk/download/pdf/234631219.pdf Rossi, M. (2014). Capital budgeting in Europe: confronting theory with practice. International Journal of Managerial and Financial Accounting , 6 (4), 341-356. https://www.researchgate.net/profile/Matteo- Rossi- 7/publication/287363256_Capital_budgeting_in_Europe_Confronting_theory_with_practice/links /597f445aa6fdcc1a9acd7d0f/Capital-budgeting-in-Europe-Confronting-theory-with-practice.pdf Daunfeldt, S. O., & Hartwig, F. (2014). What determines the use of capital budgeting methods?: Evidence from Swedish listed companies. Journal of Finance and Economics , 2 (4), 101-112. https://www.diva- portal.org/smash/record.jsf?pid=diva2:624508 Elbannan, M. A. (2015). The capital asset pricing model: an overview of the theory. International Journal of Economics and Finance , 7 (1), 216-228. https://www.academia.edu/download/68081494/39598ab185aa39ed4f4eaaf874aeb1fb1b81.pdf Kuehn, L. A., Simutin, M., & Wang, J. J. (2017). A labor capital asset pricing model. The Journal of Finance , 72 (5), 2131-2178. https://onlinelibrary.wiley.com/doi/abs/10.1111/jofi.12504 Mahr, D., Lievens, A., & Blazevic, V. (2014). The value of customer cocreated knowledge during the innovation process. Journal of Product Innovation Management , 31 (3), 599-615. https://onlinelibrary.wiley.com/doi/abs/10.1111/jpim.12116
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