Question

i need a 4 page essay? and it has to do with Amazon below it will tell you what you need to do the SUBJECT has to do with ACCOUNTING.

• Explain in your own words if the management of your firm is working for the shareholders or just working to maintain the company in operational conditions. In other words, which one is getting wealthy, management or shareholders? Explain with facts and events.
• In order to minimize expenses or improve the decision making process, companies sooner or later will require an ERP, enterprise resource planning system, explain using your firm as an example how your firm is working toward this important goal. Explain with facts and events.

Answer 1

The basic goal of any company is shareholders wealth maximization. It means maximizing the return on the investment made by shareholders. This is because owners'shareholders are the one who believed in the success of the company, they are the ones who took the risk while investing in the company and expecting only accumulation of profits and no fixed returns and hence it is only logical for the aim of a company to be maximizing their return. The best way to achieve this objective is to streamline or integrate the goals of organization with goals of employees of the company. This can be done by policies and procedures issued by the management of the company. The management of the firm have a very simple responsibility, i.e., to grow the firm. To grow the firm involves both maintaining the company in operational conditions as well as taking various steps and measures for the future growth and success of the company. As I have stated above, it is important to integrate the goals of organization with that of management and employees which means that when the firm or shareholders get wealthier, automatically, the management will also get wealthier with an increase in their bonus amounts, variable pay, ESOP options etc.

I will explain the above objectives and integration with the help of an example of the firm I am working in. So we have 10 shareholders in our company. For this year ending March 31, 2019, shareholders had given the management a target of achieving a 10% growth in revenue as compared to the last year, subject to which their normal bonus of 20% could be increased to 25%. The management was able to achieve the target and were awarded with an extra 5% bonus making the management wealthier and at the same time, 10% growth in revenue means higher profits and higher dividend distributions for the shareholders as well, meeting the objective of shareholders wealth maximization as well.

ERP, short for Enterprise resource planning software, is a business management software that not only allows a company to record transactions and maintain accounting records but also allows the management to integrate the various processes and manage the business. It helps in automating many back-end functions such as payroll accounting & processing, technology etc. ERP streamlines the processes by automating all business operations across various departments. With one source of accurate, real-time information, enterprise resource planning software reduces administrative and operations costs, allows businesses to utilize money in other, much needed areas. Also with accurate and organized information available with the management, management's decision making process is bound to improve.

I will again explain the process with an example from my firm. So we were originally working with an ERP known as Tally which is the most basic ERP you will ever find with really limited funcationalities, but as our firm grew and operations became complex, we felt the need to upgrade our ERP to a more efficient system and hence we have now started shifting from Tally to the famous SAP ERP. SAP is being used by major organizations around the world and can handle any complex process. Even though the implementation phase was pretty difficult, once it was completed, we felt the huge difference between the cost savings and the time saved as well. Hence implementing an ERP is very important for any major organization and it is highly beneficial as well.