Elective Part -- Business Management Module 3(a) Financial Management

Transcription

1 Suggested Revised BAFS Curriculum Draft as at 30 January 2013 Elective Part -- Business Management Module 3(a) Financial Management Topic Financial Analysis Explanatory Notes (original 2007) Explain the role of financial management in running an organisation. (ii) Assess business performance from a range of accounting ratios in terms of profitability, liquidity, solvency and management efficiency. Explanatory Notes Remarks (Fined-tuned as at 30 Jan 2013) Explain the role of financial managemen running an organisation. (ii) Assess business performance from a - Specify the ratios required in range of accounting ratios in terms of Supplementary Notes: profitability, liquidity, solvency and management efficiency Ratios in Compulsory Part: gross profit ratio, net profit ratio, working capital/current ratio, quick/liquid ratio and return on capital employed) Budgeting Explain the purposes of budgeting. Explain the purposes of budgeting. (ii) Describe the usefulness and limitations of budgetary control. (ii) Describe the usefulness and limitations of budgetary control. (iii) Identify the causes of budgeting variance and propose remedial action. (iii) Identify the causes of budgeting variance and propose remedial action. Plus: accounts receivable turnover, accounts payable turnover, inventory turnover, total assets turnover and gearing - Calculation of variances not required. 21

2 Sources of Compare different sources of Compare different sources of Financing financing: debt and equity financing, financing: debt and equity financing, short-term and long-term financing, short-term and long-term financing, and internal and external financing. and internal and external financing. (ii) Apply the basic principles for selecting (ii) Apply the basic principles for selecting financing methods. financing methods. Capital Investment Evaluate financial and non-financial Evaluate financial and non-financial Appraisal factors affecting capital investment factors affecting capital investment decisions. decisions. (ii) Apply the basic capital investment (ii) Apply the basic capital investment - Calculation of IRR and ARR is not appraisal methods to evaluate capital appraisal methods to evaluate capital required. projects: payback period, net present projects: payback period, net present value, internal rate of return and value, internal rate of return and accounting rate of return. accounting rate of return. (iii) Compare the usefulness and (iii) Compare the usefulness and limitations of different capital limitations of different capital investment appraisal methods. investment appraisal methods. Working Capital Explain the importance of working Explain the importance of working Management capital management. capital management. (ii) Describe the basic principles of cash management and the relevance of cash budgeting. (iii) Analyse the factors affecting the formulation of accounts receivable and accounts payable policies. (ii) Describe the basic principles of cash management and the relevance of cash budgeting. (iii) Analyse the factors affecting the formulation of accounts receivable and accounts payable policies. 22

3 Explain the objectives of inventory (iv) Explain the objectives of inventory - Calculation of EOQ is required management and apply simple management and apply simple inventory control techniques: inventory control techniques: Economic Order Quantity (EOQ) and Economic Order Quantity (EOQ) and re-order level methods. re-order level methods. Risk Management Appreciate the importance of risk management in a business organisation. - Need not specify it as an independent aspect to teach. (ii) Identify different types of risk faced Identify different types of risk faced by - Specify the types of risk in by business firms and analyse their business firms and analyse their Supplementary Notes: insurance vs impact on business activities. impact on business activities. non-insurable; pure vs speculative (iii) Demonstrate an understanding of various types of insurance protection available to business. (iv) Explain the following risk management strategies: risk avoidance, risk assumption, risk reduction and risk transfer. (ii) Demonstrate an understanding of various types of insurance protection available to business. (iii) Explain the following risk management strategies: risk avoidance, risk assumption, risk reduction and risk transfer. - Specify the types of insurance protection in Supplementary Notes: comprehensive insurance, motor insurance, fidelity insurance, liability insurance, public liability insurance, employees compensation insurance 23

4 3(b) Human Resources Management Functions of Human Resources Explain the importance of manpower planning for an organisation. Explain the importance of manpower planning for an organisation. Management (ii) Describe the manpower planning (ii) Describe the manpower planning Manpower process. process. planning Staffing (iii) Describe the staffing process. (iii) Describe the staffing process. (iv) Compare different methods of staffing. (iv) Compare different methods of staffing. Performance management Compensation and benefit management (v) Describe the objectives of performance management. (vi) Explain the methods, processes and application of performance management. (vii) Describe the characteristics and advantages of direct and indirect compensation. (v) Describe the objectives of performance management. (vi) Describe the basic steps in a performance management process. (vii) Describe the characteristics and advantages of monetary and non-monetary rewards. - To simplify and specify the scope of performance management. (viii) Compare different forms of compensation. (ix) Explain job evaluation and its relationship with compensation. (x) Explain grade and salary structure and related administration. (viii)compare different forms of compensation. (xi) Explain the purposes of benefits. (ix) Explain the purposes of benefits. (xii) Describe how to conduct and analyse compensation and benefit surveys. 24

5 Training and development (xiii) Explain the objectives of training and development. (x) Explain the objectives of training and development. (xiv) Describe the essential features of a systematic training function. (xv) Evaluate the effectiveness of different modes of training. Development of a Quality Workforce Motivation Apply the following motivation theories to enhance staff efficiency and reduce absenteeism: 1. Maslow s Hierarchy of Needs Theory 2. Herzberg s Dual-factor Theory 3. McGregor s Theory X and Theory Y 4. Vroom s Expectancy Theory 5. Adams s Equity Theory (xi) Evaluate the effectiveness of different modes of training. Apply the following motivation theories to enhance staff efficiency and reduce absenteeism: 1. Maslow s Hierarchy of Needs Theory 2. Herzberg s Dual-factor Theory 3. McGregor s Theory X and Theory Y - Confine the coverage in Supplementary Notes: on-the job training: apprenticeship, job rotation, mentoring/coaching; off-the job training: classroom teaching, programmed learning, simulated learning. - Rearrange the sequence of the topics to convey a perspective that moves from Employee relations to Labour relations. - 2 theories deleted for trimming the 25

6 (vii) Evaluate the impact of different types of work group on organisational efficiency and productivity. (viii) Apply the major team-building techniques and appreciate the synergetic effect of teamwork. Employee relations Describe the industrial relations system. (ii) Explain the application of employment-related legislation. (iii) Explain the functions of collective bargaining, conciliation, mediation and arbitration in industrial conflicts. (iv) Suggest appropriate orientation and internal communication programmes. (v) Explain grievances handling and disciplinary action procedures. Deleted 26

7 3(c) Marketing Management Role of Marketing Explain the marketing concept. Explain the marketing concept. (ii) Discuss the importance of marketing as a business function. (ii) Discuss the importance of marketing as a business function. (iii) Describe the planning, organising, implementing and controlling of marketing activities. (iii) Describe the planning, organising, implementing and controlling of marketing activities. (iv) Discuss the objectives, strategies and resources of the marketing process. (iv) Discuss the objectives, strategies and resources of the marketing process. Marketing Research Explain the importance and major objectives of marketing research. (ii) Apply basic principles for designing marketing research: data collection methods and sampling techniques. (iii) Prepare a simple market research report. Explain the importance and major objectives of marketing research. (ii) Apply basic principles for designing marketing research: data collection methods and sampling techniques. Deleted Customer Behaviour Describe the customer decision-making process. (ii) Analyse the factors which affect customer decisions. (iii) Identify the major business customers: producers, resellers, governments and institutions. (iv) Distinguish between business and consumer markets. Describe the customer decision-making process. (ii) Analyse the factors which affect customer decisions. (iii) Identify the major business customers: producers, resellers, governments and institutions. (iv) Distinguish between business and consumer markets. 27

8 Marketing Strategies for Goods and Services Target markets Explain different types of market segmentation methods. (ii) Explain the factors affecting the determination of target market: market niche and positioning. Explain different types of market segmentation methods. (ii) Explain the factors affecting the determination of target market: market niche and positioning. Marketing mix (iii) Explain the concept of marketing mix. (iii) Explain the concept of marketing mix. (iv) Illustrate different pricing, promotion, (iv) Illustrate different pricing, promotion, product and place strategies for goods. product and place strategies for goods. (v) Apply various marketing mix (v) Apply various marketing mix strategies to different stages of the strategies to different stages of the product life cycle. product life cycle. (vi) Explain the characteristics of services (vi) Explain the characteristics of services and their effect on marketing mix and their effect on marketing mix design. design. (vii) Compare the differences between (vii) Compare the differences between traditional marketing strategies and traditional marketing strategies and e-marketing strategies. e-marketing strategies. Customer (viii) Explain the importance of CRM to the (viii) Explain the importance of CRM to the relationship marketing process. marketing process. management (ix) Evaluate the factors affecting (ix) Evaluate the factors affecting (CRM) customer loyalty and develop customer loyalty and develop marketing strategies to enhance marketing strategies to enhance customer loyalty. customer loyalty. 28

9 Consumerism Adopt appropriate consumer values and attitudes in making consumption decisions. (ii) Explain and appreciate the importance of contracts in business. (iii) Evaluate the rights and responsibilities of consumers. (iv) Describe the major consumer protection measures in Hong Kong. 29