post 2 replies of at least 150 words each
Each reply must incorporate at least 2 scholarly citation(s) in APA format. Any sources
cited must have been published within the last five years. Acceptable sources include
(professional, scholarly, or trade publications), as well as the textbook and the Bible.
post #1
The
financial position of a company is determined by a variety of factors, some of
which may be out of the company’s control. In the next three years, an
organization’s financial position may be impacted by a combination of internal
and external factors. This discussion will focus on the factors that are
expected to impact on the company’s financial position in the next three years.
One of the most
important factors that will influence the company’s financial position in the
next three years is the macroeconomic environment. “Macroeconomic factors
affect companies that are more dependent on the overall health of the economy”
(Team, 2023). Team (2023) continues to explain that “Industries involving the
production and distribution of staple goods and services tend to function more
independently.” Conversely, when the macroeconomic environment is unfavorable,
businesses tend to struggle financially. Therefore, the macroeconomic
environment will have a significant impact on the company’s financial position
in the next three years.
Another factor that is
expected to impact on the company’s financial position in the next three years
is the level of competition in the industry. Recent studies indicate that
“operating in a highly competitive industry could reduce a firm’s
profitability, rendering it more difficult to achieve financial targets” (Tang
& Chen, 2020). Meaning when the level of competition is low, businesses
tend to perform better financially. Making the level of competition in the
industry have a significant impact on the company’s financial position.
Additionally, the company’s ability to access capital will have a significant
impact on its financial position. “The capital structure of a company plays a
vital role in determining its financial health and performance” (Andersen &
Andersen, 2023). Andersen and Andersen (2023) continue to explain that capital
structure “has a significant impact on various aspects of the business, ranging
from the cost of capital to risk management and shareholder value.”
Finally, the company’s ability
to manage its costs will have a significant impact on the company’s financial
position. “Cost management is a form of management accounting that helps a
business reduce the chance of going over budget with more accurate forecasts of
impending expenditures” (Lutkevich, 2023). Making a company’s ability to manage
its costs impactful on its financial position. Therefor the company’s financial
position in the next three years will be determined by a variety of factors,
including the macroeconomic environment, the level of competition in the
industry, the company’s ability to access capital, and the company’s ability to
manage its costs. By understanding how each of these factors will influence the
company’s financial position, the company can make informed decisions that will
help it achieve its financial goals.
While doing research one bible
verse that came to mind was Deuteronomy 8:18 “But remember the Lord your God,
for it is he who gives you the ability to produce wealth, and so confirms his
covenant, which he swore to your ancestors, as it is today” (Deuteronomy 8:18
(NIV), 2024). Meaning If you have a financial need in your life, begin to ask
God to show you ways that you can produce wealth. God will show you a way that
you can use things you’re good at to make money. Then be open and willing to
act on what God is showing you.
References
Andersen, M., & Andersen, M. (2023, December 29). How does companies use
capital structure | LiveWell. Livewell. https://livewell.com/finance/how-does-companies-use-capital-structure/Links to an external site.
Deuteronomy 8:18 (NIV).
(2024). Bible Gateway. https://www.biblegateway.com/passage/?search=Deuteronomy%208%3A18&version=NIVLinks to an external site.
Lutkevich, B. (2023, January 4). cost management. What Is. https://www.techtarget.com/whatis/definition/cost-managementLinks to an external site.
Tang, H., & Chen, A.
(2020). How do market power and industry competition influence the effect of
corporate governance on earnings management? the Quarterly Review of Economics
and Finance, 78, 212–225. https://doi.org/10.1016/j.qref.2020.02.001Links to an external site.
Team, C. (2023, November
22). Macro environment. Corporate Finance Institute. https://corporatefinanceinstitute.com/resources/economics/macro-environment/Links to an external site.
post #2
Good Evening Class,
The factors expected to impact
the company’s financial position in the coming years vary and depend
on various external situations to which any organization is
exposed. I found this discussion thread very interesting since we learned to
identify key points that could determine any business’s future
success or failure. It is necessary to identify the factors that will
benefit the organization or company to which we belong and avoid those factors
or methods that, if done or practiced, would affect the company we may
represent. One of the factors that stand out from the rest is adaptation to
constant changes “Organizations succeed over time only when
they adapt to the speed and character of external change. Every
aspect of an organization — from how it operates and is structured to
how it is led must match the current yet ever-shifting context in
which it exists” (Charan, 2023). In a world and a market in which
changes, improvements and upgrades occur very frequently, it is
necessary to understand that the success of any organization could be
tied to how capable the organization is of improving, changing, and
innovating processes, products, or services that can be offered to
increasingly demanding consumers and with many more options available to choose
from. Not only is it vital to keep up to date with changes and opportunities to
innovate in such a competitive market, but it is also necessary to care for,
value, and protect the workforce and all members of an organization to be in a
positive financial position and financial situation in the years to come. The
workforce can be essential for goal achieving, organizational success, and
customer satisfaction “When teams include people who are on the
front lines, the information flow is both faster and more accurate; with this
increased speed comes greater flexibility to respond to customer and market
changes” (Charan, 2023). A very famous phrase used in a topic or
subject called the origin of species states that “it’s not the
strongest or most intelligent of the species that survives but the
one that’s most adaptable to change. The idea is just as relevant as
it ever was. We are a species whose habitat is now ruled by
technology, and it is changing rapidly” (Gonda, 2018). In
the Bible, there is the following Bible verse that advises the constant
transformation of our minds to be able to follow God’s will: “Do not
conform to the pattern of this world but be transformed by the renewing of your
mind. Then you will be able to test and approve
what God’s will is his good, pleasing, and perfect
will” (New International Version, 1978/2011, Romans 12:2).
References:
Charan, R. (2023, March 30). What
defines a successful organization? Harvard Business
Review. https://hbr.org/2022/09/what-defines-a-successful-organization
Gonda, R. (2018, May 24). Adaptability is key
to survival in the age of digital Darwinism. Forbes. https://www.forbes.com/sites/forbestechcouncil/2018/05/24/adaptability-is-key-to-survival-in-the-age-of-digital-darwinism/
New International Bible (2011). The NIV Bible.
https://www.thenivbible.com (Original work published 1978)
