Financial Management In Covid-19

Posted on February 27, 2022 by Cheapest Assignment

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DATA4300 Data Security and Ethics

Introduction

The implementation of appropriate financial management approaches is essential for the maintenance of the economy in the best possible ways. The onset of the coronavirus pandemic (also called the COVID-19 pandemic) has resulted in the advent of immense levels of stress on the economies of people across the globe. The following slides have clarified the impacts of the pandemic on economies in general. A prominent focus has also been provided on the different financial approaches implemented by different countries. The selection of the best strategy among them has also been ensured.    

Big Data Project Analysis

Existing Situation

  • COVID-19 cases have risen across the world
  • The movement of people and resources have been dramatically restricted
  • Several economies have been negatively affected

The onset of the coronavirus pandemic has resulted in the disruption of normal life in regions and countries across the world. The movement of people and even goods has been restricted. This has resulted in the decline of the economic activities of several countries (Ozili and Arun, 2020). 

Impacts of COVID-19 on Economies

  • Disruption in the movement of people
  • Disruption in the transportation of goods
  • Lack of opportunities for service allocation for the companies

The impact of the coronavirus pandemic on economic activities has mainly been negative. A lack of movement of goods (due to restrictions in transportation) and individuals has directly led to a lack of service completion aspects for organizational entities of regions across the globe (Ozili and Arun, 2020).  

Operational Strategy And Financial Analysis

Impacts of COVID-19 on Economies (Continued)

  • Deterioration of poverty
  • Loss of employment
  • Issues in operational capabilities of organizations

The onset of pandemics led to a rise in poverty and the further deterioration of situations for the poor people. The decline in employment and the absence of proper tactics for organizational operation completion have been among the other main negative impacts of the pandemic on economies of various regions (Couch et al. 2020).   

Financial Management: Explanation

  • Involves planning and organizing of financial activities
  • Proper controlling of operations lead to efficient procurement and use of funds

The implementation of financial management leads to the planning and organization of financial activities. Furthermore, the initiation of appropriate financial management approaches leads to the gain and eventual utilization of financial resources in the best possible ways (Prihartono and Asandimitra, 2018). The economies of different regions are dependent on financial management strategies for the onset of desired levels of success.  

FNN 7102 Financial Management Individual Assignment

Financial Management Approach of UK: Technology-Focused Approach

  • A greater level of focus on fund investment in technology development
  • A greater level of focus on online service development initiated
  • Turnaround planning focused on
  • Slow removal of lockdown restrictions initiated 
  • The Green approach was also initiated by the UK government for economic recovery

The United Kingdom has ensured the initiation of greater levels of investment and development focus on the technology sector. The initiation of tech investments has helped UK sectors like the food industry in a proper way (Rowe, 2021). This is a part of the larger country-wide effort of initiating turnaround planning for dealing with the pandemic’s economic effects. These points, coupled with the removal of restrictions and lockdowns in planned ways, have been beneficial for specific entities. UK’s implementation of a green approach has been praised by the Financial Conduct Authority (Zafar, 2021).  

Political Factors Affected Contemporary Art In The UAE

Justification for Approach 

  • A greater level of dependence on technological aspects like online serviced observed during the pandemic
  • Initiation of financial investments in this direction can help in ensuring consistent economic activities even during later stages of the pandemic 
  • These approaches can be potentially fruitful even in future situations leading to restrictions

The aforementioned points highlight the main positives and justifications behind the use of this approach. Financial approaches combining turnaround planning with smart investments can prove to be beneficial in the given context.  

Financial Management Approach of China: Focus on Foreign Inflows

  • Strict lockdowns and restrictions have helped contain the pandemic in China to an extent
  • Relaxations to restrictions of foreign companies operating in-country initiated
  • Capital outflow initiation is still controlled and not yet set to pre-pandemic levels to prevent negative impacts of pandemic-enforced restrictions

China has initiated a planned financial management approach as well. The fact that the disease has been contained from excessive spreading has been helpful in ensuring its implementation of a robust financial management tactic. China has ensured the lifting of excessive restrictions on foreign firms for promoting foreign inflow and ensuring management of operations and financial aspects (Madera, 2020). The outflow of capital is still controlled.

Marketing Case Analysis

Justifications for Approach

  • Foreign inflow can help in the maintenance of prominent financial resource procurement opportunities
  • Initiation of this strategy can help foreign companies in investing and contributing to the country’s economic recovery
  • Chances of recovery are also increased upon focusing on foreign inflows

These points indicate the main advantages of this kind of approach. The initiation of inflow can help increase the chances of economic recovery, while also mitigating aspects like unemployment. Pandemic-enforced unemployment has been a prominent cause of concern min several regions (Couch et al. 2020).

Financial Management Approach of India: Liquidity Management 

  • Implementation of public policies for containing pandemic spread initiated
  • Liquidity management involves cash access maximization
  • Initiation of smart financial resource initiation and investment ensured for maximization of chances of boosting economy  

India has focused on the implementation of the liquidity management approach for the sake of ensuring the recovery of its economy in times of the coronavirus pandemic. Liquidity management involves greater access to cash as per requirements for the business entities (Subrahmanyam et al. 2017). The initiation of investments has been focused on in this strategy. 

MANAGEMENT ECONOMICS

Justification of Approach

  • Stabilization of financial markets can be ensured relatively sooner
  • Recovery from financial losses and disruptions is also possible faster 
  • Chances of near-future economic growth are extremely high

The initiation of liquidity management helps in the onset of multiple advantages. This kind of approach also increases the chances of long-term recovery from economic losses. The Reserve Bank of India has also focused on the restoration of liquidity management operations to normal levels as soon as possible (Dugal, 2021). 

Financial Management Approach of the United States: Working Capital Management

  • The United States has focused on a strategy for checking and controlling cash flow
  • Strategies such as cash flow forecasting and smarter inventory management have been helpful in ensuring the gradual recovery of the economy
  • The government has proposed the passing of a federal stimulus bill for investing in economic entities’ recovery from the pandemic

The US has implemented a major and integrated strategy focused on working capital management for the sake of ensuring the recovery of the economy from the pandemic. The passing of a federal stimulus bill has been one of the initiated measures (Walsh, 2021).

INNOVATION AND ENTERPRISE

Justifications for Approach

  • Investment in economic recovery helps affected businesses
  • The initiated tactic can help in planning for fluctuations in cash flow

The aforementioned points indicate the positives of the financial management strategy implemented by the United States for ensuring the recovery of its economy from the COVID-19 pandemic. The impacts of the pandemic on several states of the US (from a financial viewpoint) have not been as bad as predicted on account of the initiated measures (Walsh, 2021). This approach, however, is more suited for countries with immense financial resources such as the United States.   

Best Strategy: Reasons

  • All reviewed financial management approaches have their share of advantages
  • UK’s strategy is more versatile and potentially more effective
  • Turnaround planning, investing in technology and green planning can help in preparing for the future along with ensuring economic recovery in the existing pandemic situation
  • UK’s strategy is more multi-pronged and takes future economic disruptions of this kind into strict consideration  

While all strategies have their share of advantages, the financial management approach implemented by the UK has certain points more advantageous than the other reviewed approaches. UK’s strategy is also more versatile and can be implemented by most other countries as well. 

RECRUITMENT & SELECTION

Conclusion

The economic impacts of the COVID-19 pandemic have been immense. The initiation of integrated and planned financial management approaches is essential. UK’s integrated financial management approach combining turnaround planning, smart investment and even green planning has high chances of success (along with ensuring the potential mitigation of future emergency situations).

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