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The Duties and Responsibilities of a Finance Manager

The roles and responsibilities of a finance manager require a sincere commitment to detail and an inexhaustible need for new challenges. Each industry has its own laws and spending regulations such as health care or local government that finance managers must adhere to and more importantly hold each department of the business accountable to in order to maintain a fully functioning and federally compliant organization. Financial Manager: A financial manager is responsible for providing financial advice and support to clients and business unit managers in Al Madariyoun Industries and provide reports and financial statements required by TJH in order to enable them to make sound business decisions. Financial considerations are at the root of all major business decisions. Clear budgetary planning is essential for future planning, both short and long term. Al-Madariyoun Financial Manager will be reporting diretly to the deputy CEO and TJH

Sources of Working Capital Financing


Working capital finance helps businesses access the cash they need for their day-to-day trading operations. There are a lot of options out there, and its important to know how each can help your business. MarketInvoice offers a flexible, cost-effective solution to your businesss working capital needs, find out more here. Here we explain the different forms of working capital financing which can be divided into short-term and long-term sources.

Short Term Sources of Working Capital Financing


Factoring Instalment Credit Invoice Discounting Factoring is a traditional source of short term funding. Factoring facility arrangements tend to be Instalment credit is a form of restrictive and entering into finance to pay for goods or a whole-turnover factoring services over a period through facility can lead to aggressive the payment of principal and chasing of outstanding invoices interest in regular payments. from clients, and a loss of control of a companys credit function. Income received in advance Income received in advance is Advances received from customers

Invoice Discounting is a form of asset based finance which enables a business to release cash tied up in an invoice and unlike factoring enables a client to retain control of the administration of its debtors.

Bank Overdraft

A liability account used to record A bank overdraft is when someone

seen as a liability because it is an amount received from a is able to spend more than what is money that does not correlate to customer before a service has actually in their bank account. The that specific accounting or been provided or before goods overdraft will be limited. A bank business year but rather for one overdraft is also a type of loan as have been shipped. that is still to come. The income the money is technically borrowed. account will then be credited to the income received in advance account and the income received in advance will be debited to the income account such as rent. Commercial Papers A commercial paper is an unsecured promissory note. Commercial paper is a moneymarket security issued by large corporations to get money to meet short term debt obligations e.g.payroll, and is only backed by an issuing bank or corporations promise to pay the face amount on the maturity date specified on the note. Since it is not backed by collateral, only firms with excellent credit ratings will be able to sell their commercial paper at a reasonable price. Trade Finance An exporter requires an importer to prepay for goods shipped. The importer naturally wants to reduce risk by asking the exporter to document that the goods have been shipped. The importers bank assists by providing a letter of credit to the exporter (or the exporters bank) providing for payment upon presentation of certain documents, such as a bill of lading. The exporters bank may make a loan to the exporter on the basis of the export contract. Letter of Credit A letter of credit is a document that a financial institution issues to a seller of goods or services which says that the issuer will pay the seller for goods/services the seller delivers to a third-party buyer. The issuer then seeks reimbursement from the buyer or from the buyers bank. The document is essentially a guarantee to the seller that it will be paid by the issuer of the letter of credit regardless of whether the buyer ultimately fails to pay. In this way, the risk that the buyer will fail to pay is transferred from the seller to the letter of credits issuer.

Types of Organizational Structures Every organization, to be effective, must have an organizational structure. But what is an organizational structure? It is the form of structure that determines the hierarchy and the reporting structure in the organization. It is also called organizational chart. There are different types of organization structures that companies follow depending upon a variety of things; it can be based on geographical regions, products or hierarchy. To put it simply an organizational structure is a plan that shows the organization of work and the systematic arrangement of work. Different Types of Organizational Structures Traditional Structures These are the structures that are based on functional division and departments. These are the kind of structures that follow the organization's rules and procedures to the T. they are characterized by having precise authority lines for all levels in the management. Various types of structures under traditional structures are:

Line Structure - This is the kind of structure that has a very specific line of command. The approvals and orders in this kind of structure come from top to bottom in a line, hence the name line structure. This kind of structure is suitable for smaller organizations like small accounting firms and law offices. This is the sort of structure that allows for easy decisionmaking and is also very informal in nature. They have fewer departments, which makes the

entire organization a very decentralized one. Line and Staff Structure - Though line structure is suitable for most organizations, especially small ones, it is not effective for larger companies. This is where the line and staff organizational structure comes into play. Line and structure combines the line structure where information and approvals come from top to bottom, with staff departments for support and specialization. Line and staff organizational structures are more centralized. Managers of line and staff have authority over their subordinates, but staff managers have no authority over line managers and their subordinates. The decision-making process becomes slower in this type of organizational structure because of the layers and guidelines that are typical to it. Also, let's not forget the formality involved.

Functional Structure - This kind of organizational structure classifies people according to the function they perform in their professional life or according to the functions performed by them in the organization. The organization chart for a functional organization consists of Vice President, Sales department, Customer Service Department, Engineering or production department, Accounting department and Administrative department.

Divisional Structures These are the kinds of structures that are based upon the different divisions in the organization. These structures can be further divided into:

Product Structure - A product structure is based on organizing employees and work on the basis of the different types of products. If the company produces three different types of products, they will have three different divisions for these products.

Market Structure - Market structure is used to group employees on the basis of specific market the company sells in. A company could have 3 different markets they use and according to this structure, each would be a separate division in the structure.

Geographic Structure - Large organizations have offices at different place, for example there could be a north zone, south zone, west and east zone. The organizational structure would then follow a zonal structure.

Matrix Structure This is a structure which is a combination of function and product structures. This combines the best of both worlds to make an efficient organizational structure. This structure is the most complex organizational structure. Some Other Kinds of Organizational Structures

Bureaucratic Structure - This kind of structure can be seen in tall organizations where tasks, processes and procedures are all standardized and this type of structure is suitable for huge enterprises that involve complex operations and require smooth administration of the same. Pre-Bureaucratic Structure - This structural form is best exemplified in flat organizations where administration and control are centralized and there is very little, if any, standardization of tasks.

Network Structure - In this kind of structure, the organization managers are required to maintain and coordinate business/professional relations with third parties such as clients, vendors and associates in order to achieve a collective goal of profitability and growth. Most of the time, these relations are maintained and tasks are coordinated via telecommunications

and electronic media and, hence, this type of structure is also known as Virtual Structure. Team Structure - Organizations with team structures can have both vertical as well as horizontal process flows. The most distinct feature of such an organizational structure is that different tasks and processes are allotted to specialized teams of personnel in such a way as a harmonious coordination is struck among the various task-teams.

Advertising Slogans
Advertising slogans are used in advertising campaigns to persuade you to buy certain products and services. Over the years there have been hundreds of slogans; some more successful than others. You probably remember some of the famous advertising slogans of the past and present. Here is a list of advertising slogans. Be sure to vote for your favorite.

Finger-lickin good -KFC


Tag : KFC

Taste the Rainbow - Skittles


Tag : Skittles

Have a break, have a Kit Kat - Kit Kat Subway, Eat Fresh -Subway Open Happiness -Coca Cola 2009
Tag : Coca Cola

No bottles to break just hearts. -Arpege


Tag : Arpege

Two for me none for you - Twix


Tag : Twix

Nobody better lay a finger on my Butterfinger! - Butterfinger


Tag : Butterfinger

Your potential. Our passion -Microsoft


Tag : Microsoft

Think outside the bun. -Taco Bell


Tag : Taco Bell

How many licks does it take to get to the Tootsie Roll Center of a Tootsie Pop? The world may never know. - Tootsie Pop
Tag : Tootsie Pop

The Power to be your best -Apple


Tag : Apple

+54 Melts in your mouth not in your hands - M&Ms


Tag : M&Ms

Have it your way -Burger King


Tag : Burger King

Between love and madness lies obsession -Calvin Kleins Obsession


Tag : Calvin Klein's Obsession

At work, rest and play, you get three great tastes in a Milky Way - Milky Way
Tag : Milky Way

Soon there will be 2 kinds of people. Those who use computers, and those who use Apples -Apple
Tag : Apple

Virgin Atlantic, more experience than our name suggests - Virgin Atlantic
Tag : Virgin Atlantic Airlines

Isnt life juicy - Starburst


Tag : Starburst

Drivers Wanted -Volkswagen

10 factors creating job satisfaction


Interesting work Job security Full appreciation of work done Good wages Promotion and growth in the organization Personal or company loyalty to employees Feelings of being in on things Tactful discipline Good working conditions Sympathetic help with personal problems 1 2 3 4 5 6 7 8 9 1 6 4 2 3 7 8 9 5

Pricing strategies
Pricing strategies for products or services encompass three main ways to improve profits. These are that the business owner can cut costs or sell more, or find more profit with a better pricing strategy. When costs are already at their lowest and sales are hard to find, adopting a better pricing strategy is a key option to stay viable. Merely raising prices is not always the answer, especially in a poor economy. Too many businesses have been lost because they priced themselves out of the marketplace. On the other hand, too many business and sales staff leave "money on the table". One strategy does not fit all, so adopting a pricing strategy is a [1] learning curve when studying the needs and behaviors of customers and clients.

Models of pricing
Cost-plus pricing
Cost-plus pricing is the simplest pricing method. The firm calculates the cost of producing the product and adds on a percentage (profit) to that price to give the selling price. This method although simple has two flaws; it takes no account of demand and there is no way of determining if potential customers will purchase the product at the calculated price.

Creaming or skimming
In most skimming, goods are sold at higher prices so that fewer sales are needed to break even. Selling a product at a high price, sacrificing high sales to gain a high profit is therefore "skimming" the market. Skimming is usually employed to reimburse the cost of investment of the original research into the product: commonly used in electronic markets when a new range, such as DVD players, are firstly dispatched into the market at a high price. This strategy is often used to target "early adopters" of a product or service. Early adopters generally have a relatively lower price-sensitivity - this can be attributed to: their need for the product outweighing their need to economise; a greater understanding of the product's value; or simply having a higher disposable income. This strategy is employed only for a limited duration to recover most of the investment made to build the product. To gain further market share, a seller must use other pricing tactics such as economy or penetration. This method can have some setbacks as it could leave the product at a high price against [2] the competition.

[edit]Limit pricing Main article: Limit price A limit price is the price set by a monopolist to discourage economic entry into a market, and is illegal in many countries. The limit price is the price that the entrant would face upon entering as long as the incumbent firm did not decrease output. The limit price is often lower than the average cost of production or just low enough to make entering not profitable. The quantity produced by the incumbent firm to act as a deterrent to entry is usually larger than would be optimal for a monopolist, but might still produce higher economic profits than would be earned under perfect competition. The problem with limit pricing as a strategy is that once the entrant has entered the market, the quantity used as a threat to deter entry is no longer the incumbent firm's best response. This means that for limit pricing to be an effective deterrent to entry, the threat must in some way be made credible. A way to achieve this is for the incumbent firm to constrain itself to produce a certain quantity whether entry occurs or not. An example of this would be if the firm signed a union contract to employ a certain (high) level of labor for a long period of time. In this strategy price of the product become limit according to budget. . [edit]Loss leader Main article: Loss leader A loss leader or leader is a product sold at a low price (i.e. at cost or below cost) to stimulate other profitable sales. This would help the companies to expand its market share as a whole. [edit]Market-oriented pricing Setting a price based upon analysis and research compiled from the target market. This means that marketers will set prices depending on the results from the research. For instance if the competitors are pricing their products at a lower price, then it's up to them to either price their goods at an above price or below, depending on what the company wants to achieve . [edit]Penetration pricing Main article: Penetration pricing Penetration pricing includes setting the price low with the goals of attracting customers and gaining [3] market share. The price will be raised later once this market share is gained. [edit]Price discrimination Main article: Price discrimination Price discrimination is the practice of setting a different price for the same product in different segments to the market. For example, this can be for different classes, such as ages, or for different opening times. [edit]Premium pricing Main article: Premium pricing Premium pricing is the practice of keeping the price of a product or service artificially high in order to encourage favorable perceptions among buyers, based solely on the price. The practice is intended to exploit the (not necessarily justifiable) tendency for buyers to assume that expensive items enjoy an exceptional reputation, are more reliable or desirable, or represent exceptional quality and distinction.

[edit]Predatory pricing Main article: Predatory pricing Predatory pricing, also known as aggressive pricing (also known as "undercutting"), intended to drive out competitors from a market. It is illegal in some countries. [edit]Contribution margin-based pricing Main article: Contribution margin-based pricing Contribution margin-based pricing maximizes the profit derived from an individual product, based on the difference between the product's price and variable costs (the product's contribution margin per unit), and on ones assumptions regarding the relationship between the products price and the number of units that can be sold at that price. The product's contribution to total firm profit (i.e. to operating income) is maximized when a price is chosen that maximizes the following: (contribution margin per unit) X (number of units sold).. [edit]Psychological pricing Main article: Psychological pricing Pricing designed to have a positive psychological impact. For example, selling a product at $3.95 or $3.99, rather than $4.00. [edit]Dynamic pricing Main article: Dynamic pricing A flexible pricing mechanism made possible by advances in information technology, and employed mostly by Internet based companies. By responding to market fluctuations or large amounts of data gathered from customers - ranging from where they live to what they buy to how much they have spent on past purchases - dynamic pricing allows online companies to adjust the prices of identical goods to correspond to a customers willingness to pay. The airline industry is often cited as a dynamic pricing success story. In fact, it employs the technique so artfully that most of the passengers on any given airplane have paid [4] different ticket prices for the same flight. [edit]Price leadership Main article: Price leadership An observation made of oligopolistic business behavior in which many companycan take part, usually the dominant competitor among several, leads the way in determining prices, the others soon following. The context is a state of limited competition, in which a market is shared by a small number of producers or sellers. [edit]Target pricing Pricing method whereby the selling price of a product is calculated to produce a particular rate of return on investment for a specific volume of production. The target pricing method is used most often by public utilities, like electric and gas companies, and companies whose capital investment is high, like automobile manufacturers.