International financial management is built on the premise that for proper management, all models of finance must be applied. Economic and financial models provide crucial insights into how the world must be managed. The finance theory is an area that tackles issues dealing with investments for decision-making in the organization (Campbell & Kracaw, 1982). The financial theory brings in a unified model for the management of macroeconomy in any organization. Nielsen (1999) writes that all stakeholders in finance; for example, financial teachers, managers, economists and students must understand all components of financial management. Crucial to this is the flow of information from one point in the organization to the other. Production of information is a new area in finance theory. It has been recognized as a crucial part that cannot be ignored in the present world of economics and financial management. The discussion below looks at information production as related to finance theory in two major companies in the world.
This is a telecommunication company with a worldwide presence. This company has had its ups and downs especially in the last three years. For example, in the year 2007, the company recorded a loss of USD$1.2 billion in its handset division. As a whole, the company has been making significant progress. Effective financial management involves the management of flow of information from one point to another. Boatright (2010) links effective financial management with effective communication protocols. The flow of information from top management to lowly placed persons, and the whole of stakeholders make sure that all are well informed. When decision-making in the organization fails, it is because there is no good flow of information. And whenever people are cooperative in an organization it means they are getting the most vital information in the right manner.
Management of information at Motorola Inc
The chairman of Motorola Company Mr. Ed Zander states that strong economic performance must involve strong management of information in the company. Crucial to this is the effective flow of information from top management to employees, customers, important stakeholders like government agencies, shareholders and the media. The company has also recognized the importance of dispatching information to their customers and partaking in corporate social responsibility. The director of investor relations in the company has a responsibility of ensuring that the investors get enough information. Anything that has to be done in the company must be communicated well to all shareholders including the customers and employees. He or she has a sole responsibility of ensuring that relationships are well maintained. Investors are part of the financial community in the company. The more they are informed, the more they keep their loyalty to the company, the more they invest, and the more the company improves financially.
Effective communication in the company is part of the company’s strategic direction management for external and internal stakeholders. The analysis is that this form of management has ensured that there is strategic financial performance in the company. Motorola Company has what is known as Radio-Frequency Identification (RFID) technology. This technology ensures that radio waves are transferred to all who matter in the company. Crucial to this is transfer of important data from one point to another. Motorola’s RFID technology and solution have enabled the company to advance its business to levels of high efficiency. The technology has enabled the company to provide greater visibility into important inventory. It is a way of providing real-time information tracking and creates a more efficient supply chain. The company has also resorted to using social media to communicate with some of its shareholders. Crucial in this is that employees, existing and prospective customers have benefitted from this form of communication.
Oracle Corporation is a computer technology company that deals with marketing hardware and enterprise software products. It is a multinational company though its headquarters are in America. This is one of the companies in the world that has succeeded in managing finances and communication flow. All organizational communication should be audited internally and regularly (Hargie & Tourish, 2009). This is because effective communication is crucial to company performance especially in helping the company become financially stable. All managers must know the persons they are communicating with, the right channels to be used and the after-effects of any method and channel of communication used. Oracle has managed to move forward financially due to the fair management of its communication channels. As would be discussed, this is one of the companies in the world that have managed to use e-communication effectively.
Management of information at Oracle Corporation
Oracle Company undertakes the business of information management. It offers information solutions for other businesses especially on how best to manage information, such as sharing, protection as well as usage. It is a software company, and therefore, the kind of advice it offers includes how to manage information through use of online and electronic services. Fairly, the company has managed to offer this advice through practical terms. Most importantly, the company is by itself, a good model in such kind of information management. For example, the company has huge presence in the social media, electronic and print media and has devised other means of letting its customers access the much-needed information. There is a crucial link between its successes in management of information channels and financial standing. The company tracks its advertising and marketing platforms which have resulted in good financial standing.
Oracle Corporation has for some time now, adopted an i9ntyegrated system referred to as Human Resource Information System (HRIS). This system has become popular as a tool for managing information in businesses. It has been recommended that any small office should have such kind of a system. It is a way of saving time and money and it is an advancement of information technology. It is a contrast to the manual form of managing human resources in any company. By using HRIS method, Oracle has managed to send and receive information from all stakeholders inefficient forms. There are a number of benefits that have been drawn in the company out of using this advanced form of human resource management. For example, there is little information distortion in the company. Information flows fast enough to ensure prompt action, and a lot of money is saved from using this method of communication in the organization. The method is good for data tracking, data entry and transfer of data information among all stakeholders in the organization. It is a remedy to tedious way of passing information and has benefited the company very much.
Comparison and analysis of Motorola and Oracle companies
Frankel (2008) is clear that quality management of information results in quality management of companies. The organization should fine-tune its communication channels and other means of passing information for the benefit of influencing productivity. Madison (2005) writes about the importance played by any effective process. If there is an effective communication flow, it means that information distortion is minimized greatly. On the same, if employees can access important information in the organization, they are able to make prompt and important decisions in the company.
While Motorola Company uses the RFID method, Oracle Corporation utilizes the benefits drawn from using HRIS technology. According to Bidgoli (2011), the two forms of information management are critical to organizational performance. The two methods are good and assist in decision-making. However, it can be noted that Motorola Company has managed to utilize its system more than Oracle. The RFID method has helped create a new form of data management, and the benefits have been replicated in many instances. The company has managed to score highly in the competitive market. For Oracle, its method is part of what it advocates for or what it advises the companies to use as a way of managing their information. By analysis, it can be said that the RFID method is a fair method as compared to the HRIS technology in the management of information.
Motorola has a wider presence in the world as compared to Oracle. In essence, Motorola is synonymous with mobile handsets, and therefore, virtually everyone is an existing or prospective customer of the company. For this reason, Motorola management has pressure to ensure that any form of information management augurs well with customers in the world. With its choice of RFID over HRIS, it puts the RFID as a better method. It can also be noted that overall the company is better managed than Oracle.
Information flow is touted as one of the critical issues in organizational management. No particular company can move well if the smooth flow of information is not in place. Various methods have been used to manage information in the organization. Any particular method must augur well with all stakeholders and more importantly the top management as well as employees. Motorola is a mobile technology company, and with a world wider presence, it must manage all its stakeholders well.
If information is not managed well, effective financial management as well as other important elements in organizational planning will also be poorly managed. As a matter of fact, it is important to link effective financial management with effective communication protocols. It is paramount to ensure that there is a smooth and well-coordinated flow of information so that all stakeholders are well informed of daily occurrences as well as the progress of the organizations they are attached to. Oracle is a computer technology firm, and just like Motorola, it has a worldwide presence and therefore must manage its stakeholders well. This paper has categorically analyzed how the two companies have managed their information flow and the resultants in terms of market performance. While there may be similarities as well as differences in information management between the two global companies, the system chosen should be very compatible between the organization in question and its stakeholders.
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