Capstone Project Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Capstone Project Case Study Solution

The CFO decision and planning in order to raise the funds is considered to be very important. The CFO first identify the cost of each source of fund and compare it with the opportunity cost and on the basis of the analysis, he takes a decision regarding the source of financing in the organization. While analyzing the decision regarding the source of financing the CFO has to take other considerations into account such as if the organization fiancé their operation by debt what will impact it on the financial performance and the organization leverage because of the debt increase the fixed financial burden of the organization. The fixed financial burden means that the organization must have to pay a fixed amount of their generated cash flow to the debt holder of the organization. The fixed financial burden may impact the cash flows of the firm and increases the leverage of the company.

The CFO also consider the capital structure of the organization while taking the decision regarding the source of financing. In order to maintain the capital structure of the organization, which is considered to be one of the key responsibility of the CFO, the CFO consider the other investment opportunities and the return generating the ability of the organization in order to raise the funds and fulfill the need of the organization.

Another important function of the financial manager or CFO of the organization is to make the allocation of funds and resources. The allocation of funds is one of the major key responsibilities of the CFO. The decision regarding the allocation of the funds and resources shows the efficiency of the CFO. While the allocation of the funds, the CFO considering the different key aspects of the resources such as growth capacity, size of the organization and the source of fundraising because it affects all the other management activities of the organization. After the fundraising, the CFO takes the decision about the allocation of these funds in the best possible manner by which the organization generates better outcomes to reduce the cost of capital and value of the firm. Proper allocation of funds and resources improves the financial and operational efficiency of the organization.

Research shows that now a day’s organization has to face a couple of challenges and problem in order to achieve the financial objectives of the organization. The ultimate goal of the organization is to achieve the financial objective of the organization and to make the organization more competitive. One of the major problems that organizations face in achieving their key goals is inadequate planning and implementation of their strategies. The strategic planning of the financial manager plays an important role in the sustained growth of the organization. The role of the CFO in planning organizational strategies impact the performance and efficiency of the organization. Research shows that 90% of the organizational performance depends upon the decision making the ability of the CFO as well as the strategies alignment in order to achieve the goals of the organization. The CFO of the organization develop strategies and identify the risk associated with these strategies and the challenges in order to implement these strategies.

One of the roles of the CFO is to make the decision regarding the manufacturing in the organization. On the basis of consumer perception and to maintain the performance of the organization the CFO take decisions when to produce and what to produce and the budget allocation associated with the manufacturing. Before the manufacturing and launch of the product, the CFO estimates the cost, allocation of the resources and risk associated with the product launch and what are the strategies used in order to capture the market and make their product successful. CFO also take a decision about the product manufacturing and analyze the risk and the alternatives in order to efficient use of the cost and resources associated with the products and organizational capacity in order to maintain and enhance the profitability of the organization.

Although CFO doesn’t take all the decisions regarding product development and the cost expenditure on the product, solely. The marketing manager also helps the CFO in order to reach the ground realities of the decisions.

Another role of the CFO in order to enhance the performance of the organization is to analyze the management reports of the organization. Although CFO couldn’t prepare these management reports which includes the budget reports and the financial reports of the organization. The other employees in the financial department make these report but the CFO review these reports in order to make a future decision and forecasting regarding the next allocation of the budget to various department of the organization. The CFO also analyzes the cash flow statement in order to maintain the consistent cash flow by which the organization fulfills its needs. The responsibility of the CFO is to control the cash outflow by reducing their expenditures and to increase their inflow in order to gain financial benefits.

The role of the CFO is to make decisions regarding investor relations. The CFO take decisions about the investment and how to utilize its shareholder investment in the company. The CFO analyze each investment opportunity carefully and then find the best investment opportunity by analyzing the risk-bearing capabilities.

Every investment is associated with a certain type of uncertainty. The CFO efficiently develop the company portfolio by which it reduces the risk and maximizes the firm profit. CFO analyze the future expenditure opportunities by which the organization drives its performance and enhance shareholder confidence.

CFO is considered to be one of the key position in the organization which impacts all the areas of the organization. The primary focus of the CFO is to continue the financial integrity and to mitigate the risk. The CFO analyzes the firm financial statement and compares it with the previous statement in order to predict the future of the company. The CFO also analyze the internal and external risk associated with the organization and by their efficiencies and effective decision-making capabilities fine ways to mitigate the risk

Chief Financial Officers (“CFOs”) and finance leaders are playing a larger role in enterprise-wide business transformations. The CFO has up to date information about the economy, the industry in which its business is operating and the challenges, key issues, and opportunities associated with their business and may have the capability to impact the organization. By their strong skills and capabilities, CFO does effective measures in order to reduce the impact on their organization which will have a chance to reduce the organizational performance…………..

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