Essay Financial Management Challenges

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Financial Management Challenges David Meszler BUS 650 Managerial Finance Prof. Kevin Kuznia July 29, 2013 To understand the challenges that face a financial manager today it is important to understand the general characteristics of market structures and the impact of market liquidity, competitiveness, and efficiency on financial managers. Clarifying market structures will show the basic constructs that financial managers work under. With the basic understanding of market structures and how they influence financial managers or how financial managers influence their given market structures we will identify two problems that are faced in current markets chosen from two Proquest articles, the first problem discussed will be…show more content…
A monopoly is recognized by one company with no competition with the company setting the price. Our text points out an important effect of markets in that price is set, this is important for financial managers (Byrd, Hickman, & McPherson, 2013). Now that we have a basic understanding of market structures we can understand how they influence price and financial managers. The price of a product will be derived from what a buyer is willing to pay for that product keeping in mind a complete cycle for everyone involved allowing for ongoing, continuous buying, selling, and consumption which keeps the economy working. The ease in which an organization can turn assets (those that are bought and sold) into cash is known as liquidity. A financial manager must take into consideration the kind of market structure they are in and with that the price of entering the market, the control of price and possible impact of other organizations involved in the same market. The impact of the other organizations in both price and the quantity of products produced in the same market is known as competition. The ease in which the market structure operates with the correct ratios of supply, demand, and price is the market efficiency. One problem faced by financial managers today is the lapse in the communication process between market, sales, and financial managers according to Dr. Weissbrich and Prof. Krohmer in an article they wrote entitled Managerial-Challenges
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