Information System and Financial Analysis for Starbucks
INFORMATION SYSTEM AND FINANCIAL ANALYSIS FOR STARBUCKS
MODULE: FINANCIAL ANALYSIS AND MANAGEMENT
SECTION 1:
Introduction:
The need of management
Management is the key to success for a good business. These days management became universal, no matter what country the organisation is located in. The need of management is vital in all types and sizes of organisations. Managers in all types of organisations will plan, organise, lead, control and take strategic decisions. To make best decisions managers need helpful information.
The importance of accounting:
Accounting affects people in their daily lives. When they think of how to spend their wealth, they draw a plan of how much money they have, how much they will spend and how much they can save. Businesses are more affected by accounting. All businesses need to have records of their activities, in order to have easy access to the information they have to be well recorded and organised. This way of classifying information will enable the company to calculate its profit or its loss periodically. This will also help the company to know what they owe and what they are owed.
From this recorded data, accountants would know if the company is doing well or running a loss. They can also tell where the company is going wrong and to communicate the company performance to the business owners and to the people who are allowed to have access to the information.
Finally, accounting is considered as a way of recording and communicating information to help to make good decisions.
Accountants and owners of the company are not the only people having access to the accounting information, there are other possible users of a company accounts. The other possible users of accounting information include:
* The business owners: who uses it to know if their business is making profit or not. * A future buyer: he would want to have access to such information in order to see where he is placing his
MODULE: FINANCIAL ANALYSIS AND MANAGEMENT
SECTION 1:
Introduction:
The need of management
Management is the key to success for a good business. These days management became universal, no matter what country the organisation is located in. The need of management is vital in all types and sizes of organisations. Managers in all types of organisations will plan, organise, lead, control and take strategic decisions. To make best decisions managers need helpful information.
The importance of accounting:
Accounting affects people in their daily lives. When they think of how to spend their wealth, they draw a plan of how much money they have, how much they will spend and how much they can save. Businesses are more affected by accounting. All businesses need to have records of their activities, in order to have easy access to the information they have to be well recorded and organised. This way of classifying information will enable the company to calculate its profit or its loss periodically. This will also help the company to know what they owe and what they are owed.
From this recorded data, accountants would know if the company is doing well or running a loss. They can also tell where the company is going wrong and to communicate the company performance to the business owners and to the people who are allowed to have access to the information.
Finally, accounting is considered as a way of recording and communicating information to help to make good decisions.
Accountants and owners of the company are not the only people having access to the accounting information, there are other possible users of a company accounts. The other possible users of accounting information include:
* The business owners: who uses it to know if their business is making profit or not. * A future buyer: he would want to have access to such information in order to see where he is placing his
References: Fiscal Year Ended Oct 2, 2011 Oct 2,2011 Oct3, 2010