Managerial Accounting

Topics: Wal-Mart, Target Corporation, Strategic management Pages: 3 (903 words) Published: February 24, 2014


Part 1 of Final Project
Melissa Scott
1/28/2014
Pablo Simon
Managerial Accounting

Strategic business decisions are essential to achieve the long-term goals of the company. Strategies are mostly concerned with the scope of business activities and growth in the business (Rosenzweig, 2013). They form the fundamental basis for any organization, which is based on the facts and in-depth analysis. Historical trends in the financial statement provide for guidance about the performance of the company which are essential in the strategic decision making process. Earnings, liquidity, credit worthiness, profit generating capacity, cash flow generation and so on of a company play a significant role in strategic decision making (businesscasestudies.co.uk). Finance is the main basis for any decision making, as the company should be in a position to raise the required funds to meet the growing requirements. The financial health and condition of a company can be better understood by checking out the past performance. Historical trend provides for guidance about the trends in sales, earnings and so on which is essential for making important decisions like international ventures, mergers and expansion. For any business to be successful it has to grow or expand in order to remain competitive in the market. Before making any such investment decision the management of the company should be familiar with the resources and their performance in the business (businesscasestudies.co.uk). Trend analysis is an analysis which provides for detailed information about every account in the financial statement. This will enable the company in understanding about the existing resources and assist in strategic decision making. Companies can avoid uncertain situations to some extent by making appropriate decisions with actual facts. Strategic decisions of the company decide the future of any company. If a company is unable to generate profit and provide...

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Morningstar (n.d.). Balance Sheet for Wal-Mart Stores Inc (WMT) from Morningstar.com. Retrieved January 28, 2014, from http://financials.morningstar.com/balance-sheet/bs.html?t=WMT®ion=usa&culture=en-US&ownerCountry=USA
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