How Managers Influence Financial Performance

Discuss how business activities can be improved in order to generate additional profit for the business without compromising quality

• •Understand finance – the Income Statement ( Profit and Loss Account), the Balance Sheet and Cash Flow Statement
• •Review the financial performance of the business itself
• •Compare the financial performance of the business with that of its key competitors
• •Understand how the wider business environment can have a big impact upon how the business needs to operate and potential financial performance
• •Understand the key commercial realities currently facing the business
• Understand how the business works i.e. the Business Cycle
• –How work is won and the implications of offering discounts or other incentives to clients
• –Key issues when work is progressing and when the product/service is delivered to the client, ensuring that a profit has been generated and the cash has been received
• –The consequences of late or non receipt of payment from clients