Management Systems & Financial Information for Decision Making Assignment

Management Systems & Financial Information for Decision Making - Assignment Example Additionally, key information regarding revenue and company’s overall performance help them in their regular decision making (Tesco, 2014a; BT, 2014a). Managers and executives operate at middle level and operational level within a corporation. They are essentially responsible for a variety of operational, strategic and investment related decision making on a regular basis. However, all these decisions require accurate, consistent, timely and reliable financial information regarding firm’s activities. For instance, managers at Tesco are responsible for sales forecasting and projections and for this purpose they need information such as past revenue data, sales volume and so on. Another illustration can be, if an operational manager wishes to minimise operational cost at BT, then the manager will require information related to various general and operational expenses. Such information can be obtained only from the financial statements of BT (Tesco, 2014a; BT, 2014a). Owners and partners are ultimately held responsible for proper functioning of a business firm. Organisations such as BT and Tesco are public corporations that are managed by group of shareholders where primary decision making is done by board of directors and chairman of the company. Board of directors including the chairman are responsible for framing strategic decision such as merger and acquisition, expansion to new market, new product development and undertaking new projects. All these activities require capital and scope of future prospect for the firm. Board members generally evaluate capital structure of the company, returns on investment and overall financial position of the firm from financial prior taking long term strategic decision. Owners are mostly interested in liquidity and solvency of a firm so that they can pay off various creditors and investors (Tesco, 2014a; BT, 2014a). Organisations such as Tesco and BT have a number of