Corporate Finance Management Myer Holdings Limited

Question: Discuss about the Corporate Finance Management for Myer Holdings Limited. Answer: Introduction For this research paper, I would like to choose Myer Holdings Limited (MYR) as a research company. Myer is the largest retail company that is listed on Australian Stock Exchange (ASX). Myer is the prevalent department store group that trades a wide variety of products such as: cloths, cosmetics fragrance, footwear accessories, toys, furniture bedding, food confectionery, homewares, books stationery, electrical, travel goods and so on (MYER. 2016). Moreover, it should also be noted down that, David Jones is the major competitor of Myer in the marketplace. Along with this, this paper would be beneficial to describe the general areas of responsibility for the CFO (Chief Financial Officer) of the business organization. Also, the paper would also be useful to clarify that how the responsibilities of the CFO of firm may have an effect on ultimate objective of the business. General Areas of Responsibility for Chief Financial Officer The CFO (Chief Financial Officer) of an organization plays numerous important roles responsibilities to accomplish the financial goals and objectives of the firm in an effective and a more comprehensive manner. The CFO of Myer is also compelled to carry out numerous key roles and responsibilities to improve the organizational effectiveness and profitability of the firm (Jennings, 2014). For case, the general areas of responsibility of the CFO of Myer Holdings Limited (MYR) are expressed as below: Financial Planning: The CFO of Myer plays a significant role in order to make effective financial plans for the overall success and growth of the organization. Moreover, with the help of financial planning, the CFO would be able to make efficient use of available funds as well as resources of the organization (Lapovsky and McKeown-Moak, 2010). The chief financial officer of the Myer is completely in charge of all the budgetary exercises of the association. The CFO assumes a critical part so as to control the income of the firm in a viable way. In addition to this, the CFO of Myer is responsible to utilize the money or subsidizes and to keep up the trustworthiness of assets in a legal and a proper way. Furthermore, the CFO of Myer is legally responsible to pay all the assessments as well as securities of the association so as to enhance the competence of the firm (Hope, 2013). Also, the CFO assumes a basic part keeping in mind the end goal to set up accounting strategies and technique s for acquiring, credit accumulations, installment of bills, and other money related commitments effectively. In addition to this, the chief financial officer of Myer assumes an important part to raise the capital or assets of the business. As well, keeping in mind the end goal to raise capital, the CFO of the Myer builds up and completes programs for the arrangement of capital essential by the business. For instance, the CFO makes transaction on the acquirement of obligation and value capital and keeps up the crucial monetary courses of action in a more comprehensive manner (Roehl-Anderson, 2013). Apart from this, the CFO of Myer is liable to deal with the long-run arrangements of the business, assess the money related prerequisites that are inborn in these arrangements, and to develop alternative ways by which budgetary necessities of the firm can be satisfied. As a result, the CFO of Myer is fully responsible to oversee as well as control all the money related exercises of the business in an appropriate way. Financial Functions: The chief financial officer of Myer is responsible to create financial functions so as to enhance the financial performance of business in a suitable way. The CFO of business makes a continuous arrangement of changes in the financial functions of the association (Nolop, 2012). Whats more, the CFO comprehends the organization plan of action to produce client esteem and to play out all the accounting and money related capacities keeping in mind the end goal to enhance the performance of the organization. The CFO of the firm makes use of viable techniques, for example, balanced scorecard, dashboards, and so on in order to enhance the expected and actual financial performance of the association. Moreover, the CFO is reliable to set up and keep up lines of correspondence with shareholders, financial analysts, and investors of the firm (Sottini, 2009). In addition to this, to tidy up the real accounting as well as financial functions, the CFO of the firm concentrates on a few objectives. For instance, the CFO is dependable to direct the staff as well as branches of the firm. The CFO plans strategies, arrangements, and systems to give backing to accounting and budgetary elements of the association. Along with this, the CFO concentrates on the exactness of data to play out all the accounting and financial functions in an appropriate way. The CFO of the firm compelled to utilize a basic information mining apparatus to give exact money related data to the clients (Moran and Kral, 2013). Additionally, the CFO is dependable to adjust the staff into a task based group to perform accounting as well as financial functions capacities and to enhance overall performance and adequacy of the association. Financial Risk: The CFO of Myer is fully responsible to comprehend as well as lessen financial risks to improve the overall effectiveness and efficiency of the organization. For case, it should be noted down that, financial risk is measured as a noteworthy territory of worry to the CFO of the firm and the CFO is in charge to mitigate theses risks in an appropriate way (Hommel, Fabich, Schellenberg and Firnkorn, 2011). Moreover, to diminish the financial risk, the CFO of Myer is obliged to have inside and out information of the system of the firm with a specific end goal to uncover any risk that may happen in the monetary territories of the association. The CFO of Myer creates risk mitigation systems to spare the organization from money related risks. Apart from this, there are loads of financial risks that the CFO of firm lessens in a suitable way. For instance, the CFO assumes a noteworthy part to decrease risk identified with loss of business accomplices. The CFO diminishes this kind of risk by covering up various wellsprings of supply and by dispersing deals to an extensive variety of clients. Besides, with the assistance of this, the CFO gets to be ready to hold the key supplier and client of the firm effectively (Clark, 2012). Along with this, the CFO of the firm also assumes a basic part to relieve risk connected to loss of brand picture. For case, to diminish the risk, the CFO actualizes a solid spotlight on administration, makes propelled techniques and concentrates on the brand quality keeping in mind the end goal to enhance the brand picture of Myer in an appropriate way. In addition to this, the CFO of Myer also consistent to diminish the risk connected to the commodity price changes. The CFO of Myer makes long haul altered value contracts and utilizes cost slicing techniques to lessen the risk effectively. Moreover, the CFO of Myer is also responsible to moderate foreign exchange risk in an appropriate way. For case, keeping in mind the end goal to reduce this kind of danger, the CFO makes out the extent of foreign exchanging, distinguishes the potential misfortunes and executes hedging strategies (Kaplan and Norton, 2008). Furthermore, the CFO of Myer is liable to moderate the risk connected with the agreement failures. The CFO confirms the substance of all the current contracts and looks up new contracts with a specific end goal to guarantee that the firm is satisfying all the terms and states of the agreements in an appropriate way. Apart from this, it should also be noted down that the responsibilities of CEO can affect an ultimate goal of the organization. These duties will influence the goals and objectives of the organization emphatically. The fundamental purpose for it is that, the CFO of the firm is an imperative individual that assumes a basic part in the achievement and development of the association (Sebastian, 2011). Furthermore, a firm faces a considerable measure of troubles with a specific end goal to oversee and put its assets in a suitable way. In this circumstance, the CFO of the firm executes finance plans to deal with the assets appropriately. Additionally, the CFO has a nearby eye on all the money related exchanges keeping in mind the end goal to control the money streams of the business in an adequate way. On the other hand, the CFO of the firm lessens all the money related risks in order to enhance the monetary execution of the association. The CFO concentrates on the budgetary objectives an d goals of the firm and allots funds in perspective of that. The CFO gives directions as well as guidelines to the individuals from the firm, so they can play out all the accounting and financial functions in a precise way (Finn, 2016). Conclusion On the premise of the above discussion, it can be assumed that the responsibilities performed by the chief financial officer of an organization play a vital part to achieve definitive objectives of the organization in a predetermined time period. As a consequence, it can be expected that, the CFO of Myer assumes a basic part for the growth of the firm. Currently, the efficient markets hypothesis has turned into the focal piece of all the money related data. In addition, the efficient markets hypothesis communicates that the costs of securities dependably mirror the accessible monetary data of business associations. The speculation also insists that the real world money related markets like the U.S. security and securities exchange are proficient truth be told. In addition to this, the effective business sector speculation uncovers that all the monetary data is spoken to over the span of the cost (Tyson, 2016). Also, it is assumed that, if the efficient-market hypothesis is valid and securities are estimated well all things considered fund manager must keep up a portfolio at the best possible risk level for the investor. It is a result of picking a portfolio with a pin would not have the capacity to give consumer loyalty in a compelling way. Moreover, a particular portfolio won't work inside the fulfillment of clients. On the other hand, the efficient markets hypothesis does not remain to choose a portfolio with a pin. The benefits store chief ought not to choose a portfolio just on the premise of the effective markets speculation. It is a direct result of countless in the comparable business are insufficient differentiated. As a result, the pension fund manager must choose all around differentiated portfolio to lessen chance and to expand returns on the interests in a powerful and a more extensive way. For that reason, the pension fund manager must spotlights on the low level of risk and abnormal state of profits before selecting a portfolio (Brealey, Myers, Allen and Mohanty, 2012). Apart from this, it is assumed that, the efficient markets hypothesis does not depict that choice of portfolio ought to be finished with a pin. The manager must tail some vital standards and strategies keeping in mind the end goal to make a determination of portfolio viably. Most importantly, the chief must verify tha t the portfolio is all around expanded. The manager must consider that innumerable are not adequate in order to ensure enhancement of a portfolio. In addition to this, the fund manager must guarantee that the risk level of the expanded portfolio is appropriate for the supporters. The pension fund manager must change the portfolio to take profit of uncommon duty laws to get exceptional yields on the annuity stores. As a consequence, every one of these tenets and additionally approaches would be useful to expand the anticipated profit for the portfolio. Therefore, it can be expected that if the efficient-market hypothesis is valid then the fund manager won't pick a portfolio with a pin. The fundamental explanation for it is that a portfolio with a pin would not have the capacity to expand consumer loyalty level. In addition to this, it would not be useful to diminish the risk and to expand the profits on the financial specialists (Graham and Dodd, 2008). Consequently, the pension fund manager must choose a portfolio on the premise of apt level of risk and returns of the clients. 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). 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