Financial Management: Boring to Death or Deadly if Misunderstood?

Finance: each one of us deals with finance in some way or the other on a daily basis, whether we are a professional accountant, a number-crunching wizard, an artist, a medical practitioner, a lawyer, an entrepreneur or a home-maker. There is no escape from finance even if you do find it difficult to comprehend the financial concepts or resent dealing with numbers (that goes for myself, huh numbers!).  Being pervasive might make it one of two things (or maybe both): boring to death, or critically important. 

At RKC, we know an MBA is a prime management qualification for managers. Our Online MBAs give you a great overview of the business world and enhance your knowledge and skills further. And since Financial Management is an integral part of any business, we offer it as a core or as an elective module depending on which MBA programme you choose to pursue.  

Now, before I share with you an insider’s view of the online module let’s get started with the basics – learning what financial management is and why it is important in business.

What “Finance” really is – academically speaking 

Khan and Jain (as cited in Classification of Finance by Paramasivan and Subramanian, 2009) define Finance as the art and science of managing money. Any kind of business entity, big or small, depends on finance to meet its requirements in the economic world and so if you accept that money is the lifeblood of the organization, then finance is its heart.

Types of Finance 

As described above, Finance is one of the most important functions of a business. It plays a paramount role in the smooth functioning of the business activities.

Finance can be classified into mainly two categories:  

Figure 1. Classification of Finance by Paramasivan and Subramanian (2009). Paramasivan, C., and Subramanian, T. (2009). Financial management (New Delhi: New Age International (P) Ltd., Publishers). 

Private Finance includes the Individual, Partnership, and Business or Corporate Finance, while Public Finance, on the other hand, covers Central, State and Semi-Government Financial matters. (Source: Financial Management by Paramasivan and Subramanian (2009)).   

Financial Management 

According to Joseph and Massie (as cited in Classification of Finance by Paramasivan and Subramanian, 2009): Financial Management “is the operational activity of a business that is responsible for obtaining and effectively utilizing the funds necessary for efficient operations.” The job of a finance manager includes procurement and efficient utilization of funds. Financial management has two main objectives: wealth maximization and profit maximization.  

So ultimately, why IS Financial Management important? 

It is imperative for any business to maintain adequate amounts of funds for its smooth operations. Financial Management thus plays an important role in the following: 

  1. Financial Planning:  Financial Management begins with the determination of the financial requirements of the business. 
  2. Acquisition of the funds: A financial manager employs the most effective means of acquiring adequate funds at minimum cost.  
  3. Utilization of funds: It is not just acquisition, financial management also involves the efficient and effective use of the sourced funds to improve the operational efficiency of the business. 
  4. Profitability: Employing financial management tools like accounting, budgetary control, ratio analysis and cost volume profit analysis, businesses look to improve their profitability. 
  5. Enhance the value of the firm: As stated earlier, one of the objectives of financial management is wealth maximization and improving returns for investors.  

 
What would you learn from the Financial Management module in the Online MBA? 

Business is about profit, and there can be sustainability only with proper knowledge of effective financial management. Oxford and Harvard Business School graduate Professor David Duffill will expand and reinforce your knowledge of financial accounting, management accounts, budgeting and financing. This module aims to provide an introduction to financial accountancy and managerial economics. The module will engage you in reflective and discursive argument on the materiality of different social, environmental and ethical issues, introducing you to accounting and principles of finance and letting you use your new knowledge in practical ways by using case studies. 

What our own students say about the module?

There is nothing better than to hear from the horse’s mouth (past and current students) though, so here’s what they have to say about the Financial Management module. Each cohort is surveyed at the end of the module.

For most students, the module was “an amazing learning experience”. The course developed their skills, enabling them to quickly adapt and find a new direction. The learning also allowed them to better understand changes in the economy, and identify new business opportunities.  

It “strengthened my business and financial skills”. Students benefit from a clear understanding of the foundations of finance as well as the various financial instruments used for valuations like futures and options and also from an understanding of financial statements to make an investment decision. Videos from Professor David Duffill and illustrated instructions on exercises or examples are seen as very helpful by an overwhelming majority. 

It is not all roses though. There is also agreement on the fact that assessments are very challenging (just like real business challenges are very … well … difficult!), yet they are also a very enjoyable experience allowing students to use different financial techniques to improve a business (for those who get it right anyway!).  

I hope you enjoyed reading about business finance management today. Stay tuned for next week’s blog that takes financial management to a more personal level – managing your personal (or family) budget! Watch this space! 

All you need to know about University of Cumbria’s Residency

It is 2020! First and foremost, on behalf of our entire team at Robert Kennedy College, I would like to wish you a very Happy New Year. We wish you good health and a positive mindset, and success will follow!

All of our University of Cumbria’s online MBA programmes have six-course modules – four core modules, one elective and one residential. The mandatory one-week residential module is held in the UK at either the Ambleside, Lancaster or Carlisle campus. The module title is “Tackling Global-Local Challenges in Ethics, Responsibility and Sustainability“. There are several dates during the year which you can choose from to attend the residency that fits your busy schedule. 

Time flies and it is almost time for the first Residency in January 2020 for our University of Cumbria’s Master of Business Administration programme students. For those who are not our students yet and wondering what is a Residency, keep on reading to find out all about it. And those who are registered for this upcoming residency, pull up a diary and make notes of what to expect and how to prepare well for the residency, because here are some real insights, tips and advice from our current students about their own experience attending the residency last year. 

The topic: Tackling Global-Local Challenges in Ethics, Responsibility and Sustainability

All our MBA programmes focus on real-life problems and issues that enable you to think critically about your company and your own career. Corporate social responsibility (CSR), according to Visser, involves what is called the four ‘DNA responsibility bases’ of good governance, value creation, environmental integrity and societal contribution. There is a demand for the more global marketplace and more ethical managerial conduct to deal with the global-local challenges, and responsible leadership is an answer to such demand.

Our students are leaders or aspiring leaders in the business world who face this challenge in their companies every day. This residential module allows the students to gain insight into how the dimensions of corporate governance, sustainable development and ethics are affecting and shaping today’s organizational policies and practices. Students are guided and invigorated to unique ideas and solutions to issues faced by their current organization or local community. This is an enriching one-week that promotes experiential learning through contemporary case studies and teamwork.

Where and When to plan for residency?

We surveyed about 120 of our current MBA students with some of the frequently asked questions about the residency. We got 50 answers back (a response rate you should be very happy with for your dissertations, even though you would, of course, aim for higher numbers!). Here’s what they have to say about their experience at the residency, sharing some immensely useful tips learned the hard experiential way.

There was 50:50 split on the choice of location of residency between the Ambleside and Lancaster campus.

A vast majority of students (80%) had completed at least four modules before attending the residency and a little less than half of all respondents (46%) thought the right time to attend the residency was when they were about half-way through the course. So the takeaway here is to try and take the residency somewhere after the third or fourth module.

On the other hand, 24% of students would have rather attended the residency as soon as possible after completing the first module.

Attending the residency right after the first module allows one to have human interaction in the otherwise online programme, establish relationships that develop and last throughout the programme and beyond, and allow you to better relate to your peers and colleagues

Paul H.

Some students found that it can help with the rest of the modules too. Peter said that he found taking the residency early on gave additional value in the structuring of academic writing and formulation of assignments as well as how to use OneSearch.

For those who voted for attending residency either halfway through or as late as possible attributed it to the fact that having finished other modules equipped them with a better foundation and management tools to interact and respond in the group.

Thus depending on whether you are more a human interaction person or self-starter, you can choose the right time to attend your residency. 

MALIC Residency Nov 2012
Team Discussion during Residency

What else do you learn at the residency?

Many of our students ask “why is the residency important in an online programme?” and what does one actually gain from it.

It was a great experiential learning experience with an interdisciplinary and diverse group from around the world.

Luis C.

Many students gained an interest and understanding of the future focus of sustainability and climate change, the value of cross-sector collaboration, how to tackle ethical dilemmas and apply ethical theories in real-life.

Others learned about the concepts of Triple bottom line, SDGs 2015 and ERS, and yet others learned how to structure their dissertation. Maurice B., who came to the residency with over 35 years of experience of working, studying and interacting with multi-cultural groups, was nevertheless impressed by the high degree of professionalism, dedication and above all the feelings of warmth, the receptiveness of the residency.

Congratulations to all on a splendid display of academics, stewardship of facilitation, operational and executive excellence – the absolute best I have ever seen!

Maurice B.

A staggering 80% of the students surveyed agreed that the learning at residency was completely relevant and 92% said there was a definitive value-add in attending the residency.

The majority of the students found meeting the peers and professors a valuable experience and felt better prepared for the rest of the programme. So though the residency week can be pretty intensive and action-packed (as 44% of students agree), 62% of students admit it is a lot of fun as well!

It is the best experience of the MBA program, combining both theoretical and practical aspects of sustainability in business with a multicultural team. The group exercises are just great and the tour in nature is very inspiring. I’m convinced you will enjoy it!

Serge
A reflection session in progress

Where to stay during the residency?

I must say it was a unanimous response from most of the students on the survey, that one must stay close to the university during the residency week. Make your travel plans in advance and book accommodation early to avoid any disappointments. Talk to our StudentCare team and they can provide a list of accommodation near campus for your stay during residency.

Book accommodations directly through university suggested facilities and arrive a day early to acclimate. Don’t forget to make daily summarizations  of activities and sessions.

Rosamunde C.

Many students also put a word of caution about the wet weather conditions in Cumbria, UK and recommend coming prepared for cold and rainy weather. 

To summarize the residency, I would like to quote John’s advice in his own words:

1. Plan for your UK visa in advance – it takes up to 3 months depending on the holiday season and country you are located in. ([editor’s note] and this was before Brexit!)

2. Book the hotel in advance – depending on the season, it is difficult to find accommodation especially in and around the University of Cumbria specially during the March season. 

3. Weather – when you want to play golf, it rains in the UK. Therefore, prepare yourself with winter-wear, umbrella (if possible), windcheater or raincoat and boots as there are outdoor activities and trekking involved. 

4. Time management – spend about an hour to revise the day’s work so you are prepared for the next day’s activity. When in groups, participate and lead the team as some peers may be in a holiday mood. Get them to work with you and research for the final day activity – prepare and participate. 

5. Cumbria – is the place of William Wordsworth – daffodils are everywhere, enjoy them and unwind in the midst of nature. This is the place to be if you are interested in Sustainability and Environment.

John M.

I hope reading through the blog you gained valuable insight into our residency module and how to best prepare yourself for it. And we could not agree more with this quote from Fatos:

It will be an experience you will have once in a lifetime. I assure you will not regret any day being in Ambleside!

Fatos A.

Finally, a big thanks to all our students who helped us provide you with these tips and tricks about the residency – they generously offered their time and advice – a sharing spirit we witness every day in our OnlineCampus.

See you in Cumbria!

Sustainable Leadership

” Good Leadership is a lifelong leadership process. The best leaders know the difference between a dream and                            a purpose  and they learn to follow their purpose” – Mama Jan Smith

Leadership is defined as the ‘action of leading a group of people or an organisation’.

In today’s complex business world where businesses are multifaceted and multicultural; leadership definition has taken a whole new level. Leaders are not only expected to ‘lead’ a group of people but also effectively manage and influence the group towards goals and values which are sustainable and contain a vision for the future.

YSJ - RKC - MALIC Signing

Earn your Leadership Everyday” – Michael Jordan

Leadership is not confined to the top levels, to people with a ‘C’ in their business designations. To be successful, organisations need leadership ‘at all levels’ of operation. Leaders at all levels critically convert ideas to reality through far-sightedness and actively engaging in their environment.

Leadership ‘remains the No. 1 talent issue facing organizations around the world.’  Finding good leaders has, of course, always been a crucial issue for all sorts of organizations. This is why the armed forces, for instance, put so much effort into training their officers and why business schools and other providers of executive development have thrived. But the ’21st century leadership is different’.  Companies face new leadership challenges, including developing Millenials and multiple generations of leaders, meeting the demand for leaders with global fluency and flexibility, building the ability to innovate and inspire others to perform, and acquiring new levels of understanding of rapidly changing technologies and new disciplines and fields. No wonder organizations are coming up short.

At University of Cumbria, we offer MBA in Leadership and Sustainability and MBA Media Leadership programmes that cater to the increasing demand of distinctive managers with the aim of developing a unique leadership-oriented career opportunity.

Click here to know more about our programmes.

Advantage in having Student Diversity

The world has become a smaller place, a global village and organisations have truly become multinational. Today’s managers must not only know how to manage business at a global level but also understand the nuances of doing business at local level.

Diversity in your college in terms of race, gender, religion and other factors has a positive impact on all students. Diversity enriches your experience by exposing you to a non-homogenous composition of students as an introduction to the cultures of the world and so to a richer learning experience.

This exposure will also create a diverse learning experience providing:

Greater Self-Awareness – Joining a college that has a diverse student base exposes students to a wide spectrum of cultural and life experiences, shattering preconceptions and prejudice and enhancing the overall learning experience.

Knowledge and Critical Thinking – The course curriculum is not the only source of knowledge in college. The opportunity to interact with diverse peers, leads to greater active thinking, intellectual engagement and motivation.

Global Perspective – In today’s global business environment with clients, suppliers and employees from all over the world and different backgrounds, an exposure to a diverse college environment lays the foundation for a global perspective and builds the social abilities needed to interact productively with individuals of various nationalities and backgrounds. The experience will enhance your career prospects because you are prepared to face opportunities you may not otherwise consider.

Social Development – Interacting with students and faculty from different national and social backgrounds will not only create a global network but will be enriched with diversity. This diverse exposure will also create a diverse learning experience providing the socialisation skills and knowledge which would otherwise have been out of your comfort zone.

Collaboration – A study conducted by researchers at the University of Wisconsin-Madison found that ideas generated by diverse teams were of better quality in terms of feasibility and effectiveness with input from individuals of diverse backgrounds and perspectives that otherwise would not have been raised.

Robert Kennedy College with almost 14000 students from almost every county in the world offers one of the most diverse online Master’s degree programmes both in Law and in Business through exclusive partnerships with British universities. For more information download programme catalogue.