Introduction
Accounting and finance are two different fields from each other as both of these things require having quantitative data to analyze the things in an effective and well organized manner. Organizations are made to increase the financial belongings with the help of effective accumulation and articulation of data with its utilization at different places and sections in particular. The main perspective of this assignment is to analyze the effectiveness of quantitative data to manage an organization with effectiveness. It is advised to select an organization and the organization which has been selected for the same analysis is General Motors. There are three different parts of the assignment that needed to be complete in particular.
Section-1
There are two different types of data and data accumulation which particularly are quantitative data and qualitative data. Quantitative data is such type of data that mainly has quantitative based things in particular like it could be analyzed with the help of effective data. Quantitative data are effective in terms of its utilization to manage the operations of an organization with effectiveness. With the help of having quantitative data, organizations can take advantage of the costing and revenue functions of an organization . Cost efficiency would also consider to be reduced accordingly with the help of quantitative data. The strength of decision making can also be enhanced and improved perfectly with the help of utilizing the quantitative data in particular. With the help of quantitative data, an organization becomes able to increase its revenue as well as decrease its cost and increase the bottom line of the company tremendously well.
There are numerous benefits of the utilization of quantitative data as it gives a perfect measurement in terms of taking effective economic decisions in particular. The biggest advantage of utilizing the quantitative data is that it is easy to use analysis and then articulates, however, the biggest disadvantage of quantitative data is that organizations cannot rely completely on these data because it is made on the past data and record in particular, and have no association with the future consequences and analysis.
Yes, the data can be used for almost everything as it could be used to take economic decisions, as well as noneconomic decisions. The decisions could have been taken to increase the financial belongings, as well as checking and changing of policies in particular. Most of the organizations are now taking quantitative data to make their strategies not only for the financial purpose but also for the marketing purpose, as well.
Management officials have flair ideas regarding which information should have been used and which information should have been avoided for the sake of taking effective economic decisions. The information that could have been used for the analysis purpose is the information related to revenue, net income, pricing and other important ratios. A person can decide over what information should have been used and what not would be based on its financial belongings. General Motors management is effective and can take decisions on the basis of different quantitative data, as the revenue of the company increased by 2.08% in the year 2013. Therefore, the management of the company would require enhancing the same with effectiveness in the future.
Costing and benefit decisions are quite important for the organizations take effective decisions in particular. Costing is always ineffective for the sake of the organization, and it will not worth an organization in having high amount of costing because it decreases the bottom line approach of the company in particular . Costs versus benefits decisions are quite effective and important for a company to reach on a certain result and consequences. The cost of revenue in the 2013 was 88% that is quite high and the company would take effective economic decisions in particular. The information that could have been captured from the annual report of the company would be cost and revenue figures. The examples that have been quoted relate to the cost of the operations as cost to revenue of the company is 88% that is comparably high as far as operations is concerned.
Section-2
An organization that has been used for the same analysis is General Motors. General Motors (GM) is an American based multinational corporation with its headquartering located in Michigan, United States that designs, manufacturing and distributed the vehicles and its related parts in 37 different countries of the world. There are ten different brands related to the company. The main goal of GM is to provide products and services of such quality from which our customers will receive superior value while their employees and business partners will share in their own success by giving their stakeholders will receive a sustained a superior return on their own investment.
The structure of the company is perfect and well organized and perfect. The company has been devised into three different sections, which particular are upper management, mid level management and subordinate. The upper management of the company is held responsible for taking of economic and timely decisions and all of the decisions would have been restructured and completed in a perfect way in particular . The middle management of the company is the only management which is allowed to make the reports of the company for the upper management for the sake of taking economic decisions. The Structure of an organization worth a lot for the company especially at the time of taking decisions because structure is the only thing from which organizations can take effective decisions in particular
The structure and operations of the chosen organization which is General Motors is currently managed perfectly and effectively for its future consequences and analysis. Operations of the company are flawless and effective and upper management involves very much in it. The upper management of the company has the authority and available resource from which they can take effective economic decisions in particular. The company is managing its operations perfectly and due to this the generated revenue of GM in the year 2013 was US$ 155.42 billion while net income was US$ 5.346 billion.
Section-3
Quantitative analysis could be quite important and effective for the organization as far as taking effective economic decisions in particular. It is required to use different statistics and trends to predict the future of the organization. Trend analysis is used to assess the loopholes of a company, and it also used to predict the revenue, net income as well as the future consequences of an organization in particular. In terms of enhancing the organizational performance, information related to cost, net income, expenses, assets and liabilities would have been taken into consideration by the organization and organizations always try to have a certain added advantage on the basis of those information. Information regarding escalating revenues and expenses is important for a company to use and surrender for a specific period and organizations use these expenses to analyze the trend of the company. The section of Management Discussion and Analysis (MD&A) of the financial report are the one who have the information regarding the trends of the company in terms of generating revenues and incurrence of expenses in particular. The quantitative data of expense incurred in a fiscal year is important to analyze for an organization as it identifies the loopholes of a company in terms of generating net income. The figures of expenses, assets and liabilities which are increasing or decreasing in regular intervals would certainly enable an organization to take decisions. The high cost would not be effective for the organization and organizations always try to reduce it. According to the analysis, it is found that the cost to revenue ratio for GM is 88% in the year 2013 which was extremely high, and the company has to decrease it accordingly. The trend in the costing of the company is on the same level from last five years, and the same statistics would be decreased in order to increase the level of net income of the company accordingly.
Conclusion
The main perspective of this assignment is to analyze the effectiveness of quantitative data to manage an organization with effectiveness. Quantitative data utilization is common even in GM as well, and the company takes different economic and non economic decisions on the basis of the company’s position in particular.
References
Chiulli, R. M. (2003). Quantitative Analysis: An Introduction . Chicago: CRC Press.
Triebold, H. O. (2007). Quantitative Analysis. New York: Read Books.
Yi Tang, B. L. (2007). Quantitative Analysis, Derivatives Modeling, And Trading Strategies: In The Presence Of Counterparty Credit Risk For The Fixed-income Market. London: World Scientific.
