Academic Skill for Accountants
The key role of an accountant is to take care of the entire organisation by appreciating financial statements of the organisation. An organisation is always dependable over their financial statement, as this is the only factor that helps the organisation to know their financial outcome as well as strength. In this detailed study, the learner would explain the function of a business accountant in the working environment. Along with this, the learner will discuss the economic stability of the chosen organisation HSBC Bank. The chosen organisation HSBC Bank is world’s top-rated bank that serves more than millions of customers in the market.
Sole trader, partnership or a limited company are all private organisations. Select an organisation of your choice
As per the nature of the study, HSBC bank has been selected with the aim to get relevant information about the economic development of this organisation. HSBC Bank is the private bank that has been established in Scotland and now has reached the top level in the international market (HSBC.com, 2018).
Discuss the advantages of the selected organisation
The selected organisation is being chosen for this academic research study due to its positive nature. The organisation would be the good example to define the market development plan and the economic analysis. Economically the organisation has the total revenue of US$51.445 billion. Its net income is the US $11.879 billion, and it has 228,687 employees in all over the world including the domestic market, at the end of the year 2017 (HSBC.com, 2018). This organisation has been chosen for this study as it has derived the management of economic development and the cultural diversity in a better way.
Discussion on disadvantages of the selected organisation
The chosen organisation has few disadvantages such has due to large sector organisation, it has long documentation procedure. Along with this, the organisation has the old style of card system that is not attracting the clients or customers in the field. The organisation is even not much focusedon the nature of the return on investment that is the reason in such cases the organisation faced few issues. The chosen organisation is even not having good control over its corporate governance because of which it has faced few commercial losses in the market (Ft.com, 2018).
For an organisation, its stakeholders play a key role in the workplace. The chosen organisation has its internal stakeholders such as owners, the board of members and employees who are working together in the international market as well as in the domestic market with cooperation (HSBC.com, 2018). Due to positive working culture in the organisation, the employees are motivated and perform their part of duty with positivity. The organisation has been well positively organised their organisational culture.
The external stakeholders are the kind of stakeholders; those are stayed in the external environment of the organisation and indirectly support the organisation. For the HSBC Bank, its external stakeholders are government, financial institutions, merchant bankers and venture capital service providers; those are supporting the organisation by providing relevant information about the market (HSBC.com, 2018). The external stakeholders have no power to make any changes in the internal environment of the organisation, but their information influenced the organisation to frame better strategic or business plan for the betterment of the market.
Customers, investors and other shareholders except equity are the connected stakeholders of the chosen organisation HSBC that is also helping the organisation to grow by giving them possible information from the market (HSBC.com, 2018). The connected stakeholders are the respective factor for an organisation that indirectly supports an organisation to know the nature of the market also to stabilise the financial growth.
Definition of Law of Diminishing marginal utility
The law of diminishing marginal utility has been defined as a fundamental that is being used to analyse the utility of a single consumer in the market. Kauder (2015) stated that in the market it is so much important to know the utility scale of a single customer to analyse the further production of final products.
Definition of Law of Diminishing marginal utility
The above chart is representing the law of diminishing marginal utility under which it has been derived that with every single purchase of a commodity the utility level of the consumer also increased (Alvino et al. 2018). As what has been shown in the above chart that after purchasing every single unit of the commodity, the marginal utility is slopping down. The marginal utility is slopping down because, after every purchase of the single unit of the commodity, the utility of the consumer diminished because they are satisfied.
The above graph is representing the law of diminishing marginal utility in diagrammatic form, under which it has been derived that with every single purchase of a commodity the utility level of the consumer also increased (Business Jargons, 2018). As what has been shown in the above chart that after purchasing every single unit of the commodity, the marginal utility is slopping down. As per the graph, TU is increasing and in against MU is slopping down. The AU is diminished with an average rate, but MU is reducing at diminishing rate. When TU is reached thepeak, the MU reached zero and then TU increase at diminishing rate, and MU slops down to the negative axis.
- All the customers are rational in the market
- The price of substitute goods remains constant
- The price of complementary goods remains constant
- The demand for the commodity in the market remains elastic
Budget preparation is one of the significant aspects for an organisation to gain success and achieve the desired profit. However, during the preparation of the budget, it is essential to consider the factors like cost variances and budget variances. These two factors are considered to be significant in deviation of the estimated budget from the final one. If the variances factors are being forecasted in an accurate way then there will be minimum variance in the budget. If control can be gained over the cost variance then automatically the control will prevail on the budget variance. Thus the budget control can be established.
Willingness and ability
The term willingness and ability havebeen defined as how the organisation is performing in the market. The willingness has been defined as what an organisation can do to make their organisational goals and objectives possible in the market. The ability has been defined as the potential of the human resources of the organisation by the help of which the organisation is making its organisational plan and policies certain in the market.
The term willingness and ability havebeen defined as how the organisation is performing in the market. The willingness has been defined as what an organisation can do to make their organisational goals and objectives possible in the market. Chumg et al. (2015) stated that the willingness of the organisation is dependable over the resources of the organisation by the help of which the organisation is performing in the market the statement has deduced that in the market the major goal of an organisation is to earn profit by making the customer satisfied. The statement has been even articulated that the organisation is planning better for developing its market strength.
The ability has been defined as the potential of the human resources of the organisation by the help of which the organisation is making its organisational plan and policies certain in the market. Baileyand Bridges (2016) stated that an organisation is so called to be able in the market when it is performing well in the market as per its business and marketing strategies. The statement has deduced that the ability of the organisation is highly dependable over the internal environment of the organisation as well as the culture of the organisation.
Law of Demand
The law of demand has been definedas the fundamental to define the relationship between demand and price of the commodity as well as demand and supply of the commodity in the market. The law of demand has been stated out that, in the market, the demand for the product is dependable over the price of the product. It has been assumedthat in the market if the price of the product or commodity rises in the market than the demand for the commodity will befall. On the other hand, the relationship between supply and demand for the product is negative. Increase in demand reduces the supply of the commodity and vice versa.
In the following figure, the nature of the law of demand has been defined, which has stated that the price of the commodity reflects the demand for a single commodity. It has been seen in the above figure that, if the price of the product or commodity rises by 1 – 2 unit than it is directly influenced the demand for that commodity in the market equivalently.
The economist of the organisations is always keeping this factor in their mind that at which rate the price of the product is rising in the market. Most of the organisations are following feedback technique in the organisation as well as in the market to measure the demand scale to analyse the demand for a single commodity in the market.
Price equilibrium is another factor that helps the organisation to set a par between demand and supply of the commodity in the market. The Price equilibrium has been defined as economic theory, under which the marketers are focusing on the stage, where for an equal price the demand and the supply of the commodity are equal (Economics for Breakfast, 2018). As what has been drawn in the above figure that, the price P and the quantity Q when equal the demand and supply of a commodity also remains equal. From this stage, any change in the price of the commodity would influence the demand for that commodity that will affect the price equilibrium.
In case of the chosen organisation, HSBC Bank might calculate their economic growth in the market. HSBC bank is providing random services to their customers, and hence these economic tools would be helpful for the organisation for calculating its economic growth in the current market and the future market.
Law of Demand
- Customers remain rational in the market
- The price of the substitute goods remains constant
- The price of the complementary goods remains constant
- The demand for the commodity will remain constant
- The price of the commodity remains constant
As per the above assumptions, it has been defined that in the market, every marketer or else the economist assumed that, the entire market would remain constant and the demand curve will not be affected. The fact is the market is always flexible because it is dependable over the taste and preference of the consumer (Lantos, 2015). The assumptions are stated to be false because this is impossible that customers will not change their demand quantity or consumption rate. The income level of the customer is the major factor that influenced the perception of the customers or consumers in the market. Further, that enforced the customers or consumers to change their taste and preferences regarding any single commodity. From the above discussion, it has been justified that, only based over the assumptions, the law of demand is a practical fundamental that is helpful for any of organisation to calculate the economic growth in the competitive market.
It has been discussed in the above study that, the key role of an accountant is to take care of the entire organisation by appreciating financial statements of the organisation. It has been discussedthat an organisation is always dependable over their financial statement, as this is the only factor that helps the organisation to know their financial outcome as well as strength. In this detailed study, the learner had explained the function of a business accountant in the working environment. Along with this, the learner had also discussed the economic stability of the chosen organisation HSBC Bank. In this detailed study, the leaner has discussed over the law of diminishing marginal utility and law of demand that has deduced that both tools might be helpful for HSBC bank to calculate the economic growth rate in the targeted market.
- Alvino, L., Constantinides, E. and Franco, M., 2018. Towards a Better Understanding of Consumer Behavior: Marginal Utility as a Parameter in Neuromarketing Research. International Journal of Marketing Studies, 10(1), pp.90-95.
- Bailey, C. and Bridges, D., 2016. Mixed ability grouping: a philosophical perspective. London: Routledge.
- Business Jargons.,2018. What is Law of Diminishing Marginal Utility? definition and meaning - Business Jargons. [online] Available at: https://businessjargons.com/law-of-diminishing-marginal-utility.html [Accessed 10 Mar. 2018].
- Chumg, H.F., Cooke, L., Fry, J. and Hung, I.H., 2015. Factors affecting knowledge sharing in the virtual organisation: Employees’ sense of well-being as a mediating effect. Computers in Human Behavior, 44, pp.70-80.
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- HSBC.com., 2018. Group results and reporting | HSBC Holdings plc. [online] Available at: http://www.hsbc.com/investor-relations/group-results-and-reporting [Accessed 10 Mar. 2018].
- HSBC.com., 2018. Leadership | HSBC Holdings plc. [online] Available at: http://www.hsbc.com/about-hsbc/leadership [Accessed 10 Mar. 2018].
- Kauder, E., 2015. History of marginal utility theory. Princeton University Press.
- Lantos, G.P., 2015. Consumer behavior in action: Real-life applications for marketing managers. Routledge.