You are a manager of attire division of On Your Mark, a producer of athletic equipment and apparel that has just gone through initial public offering (IPO) process and has become public company. On Your Mark has annual sales revenue of about $50 million and makes seven unique and distinct products (which serve seven different markets). Each product is offered by its own division in company and has its own group of sales, marketing, and manufacturing personnel. Some departments, comprising human resources and finance division, support whole organization. Operations consist of single headquarters and production (manufacturing) centre.
In role as division manager, you are in charge for compiling and reporting on budget / predict data, and for measuring and valuing new business opportunities (which will eventually be offered to upper management). You report directly to Plant Manager; though, you work closely with Chief Financial Officer (CFO), and accounting department's staff accountants help you with budget / predict responsibilities.
You have been learned by CFO that On Your Mark will be forcefully pursuing new business opportunities that may comprise expansion through acquisition and development and implementation of new products. As publicly traded company, On Mark is examined by bankers and investors as never before. In satisfying your responsibilities you should keep this in mind, and you should inspire a new sense of financial discipline in the organization.
Task Type: Discussion Board
What roles do financial institutions play in financial decision-making of individuals? Use personal examples to describe. How do financial institutions ease transactions between individuals, businesses, and governments? Why are these roles essential? What roles do financial institutions play in financial matters for businesses? Are roles same or different than for individuals? Describe.
Why do we frequently refer to financial institutions as intermediaries? What does term "intermediary" mean and how does it help explain the function of institution?