«Financial Management Simulation» - Free Essay Paper
Table of Contents
The effective financial management is very important to the company. The financial management ought to be accurate and be in a position to reflect both the internal and external circumstances that have the potential of impacting on the firm (Saunders, & Cornett, 2007). There is a need to look at the aspects of simulation in financial management in terms of the technological features and how they should be improved since the financial reports ought to be accurate for decision-making purposes.
Rapidly changing environmental conditions cause the necessity for businesses to take prompt and high-quality solutions. The preceding simulation and its correlation with the environment play an important role in determining the importance and value of these programs for financial management. Many literary sources are very critical towards the ability of programs to correspond to the external conditions of financial and management systems. At the same time, students apply and train their skills and knowledge through a simulator program. This essay focuses on the conditions of usage of the various financial simulation technologies, their characteristics and the recommendations concerning systems of the technologies, which ought to be improved in order to obtain maximum efficiency and accuracy.
Conditions of Simulation Usage
There are various dispute issues associated with the simulation of the financial management model to the actual situations in business alongside management decisions. Online simulators offer the opportunity of practicing both social and professional activities in the environment that is devoid of measures entailing curbing sanction, risks as well as costs as a result of lack of non-optimum business conduct (Zopounidis, 1999). The gaming technology is very critical to the training of the youths as it enables practicing financial experts to capitalize on the peculiarities as well as the opportunities provided by the gaming technology. The preceding simulation and the correlation with the environment are important in the determination of the significance alongside the value of these programs on the financial management arena (Saunders, & Cornett, 2007). Furthermore, many authors are very critical as to the capability of the programs to correspond to the external conditions of the financial management systems. Students also train their knowledge and skills via a simulator program. It is impossible for the online simulator programs to reflect the dynamic of the business process as a result of the rate of change of short economic and financial trends. Proper simulation approach involves the formulation of the learning processes in which a learner operates. The external circumstances do not permit a learner to train properly in a simulation program and as such the educational program aims at ceasing to be a game. It is therefore imperative for the learners who are advanced in gaming to move from the conditional circumstances to a real action. The learner should be in a position of transforming the theory into practical activities and, thus, the game will stop to exist both as fictitious and as a condition and thereby it will be transformed into a real practice (Zopounidis, 1999).
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Characteristics of the Simulator
To commence with, simulators in dictation and training are the major means of improving practical skills alongside the quality of reaction to the external stimuli. Furthermore, the application of the program as a form of a simulator facilitates the flexible and easy access of a wide audience of participants with distinct professional skills (Saunders, & Cornett, 2007). The simulator is sufficient in the formation of the novel knowledge as well as the improvement of the financial skills (Herbst, Junginger, & Kühn, 1997). The various people who are engaged in the development and promotion of simulators argue that these games help the participants to receive both experience and a foretaste in the operation of the simulated online businesses in an environment that is very safe with the help of the tools used in team building and managerial talents (Saunders, & Cornett, 2007).
The online program the Fin Game is specially developed to run a simulative company over a range of operational periods. The operator has to manage both the financial and the operational transactions and make proper decisions concerning the analysis of the systems of accounting (Zopounidis, 1999). The Fin Game operates under an assumption that the company produces and distributes goods that are both undefined and undifferentiated. This condition or assumption by itself restricts the management decisions of both diversification and enlargement of the product lines. The Fin Game has the major weakness of not reflecting the actual financial condition of the company. Besides, it has one more disadvantage, because it is not allowed to interact between the competitors and the potential suppliers. This means that the system focuses only on the internal environment of the company and its decisions are based on the financial management (Saunders, & Cornett, 2007).
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The online program Fin Game is a special package developed to run a simulative company over a range of operational periods (Saunders, & Cornett, 2007). The player has to manage the financial and other operational transactions and make appropriate decisions concerning the analysis of accounting statements. The software instructions order to use Fin Game’s conditions taking into account the certain rules.
Attempts of Fin Game to persuade the real factors of external environment rely on the implemented algorithms of the program. It assumes that the firm produces and sells undefined and undifferentiated products. Nevertheless, the given firm Finagle is engaged in the production and promotion of differentiated product supplies. This condition has already restricted the managerial decisions of diversification and enlargement of product lines. Although Fin Game starts the game profile of each player with the same asset mix, the structure and potential of financial statements and opportunity for success, it does not reflect the real condition of the company. The financial opportunities of the Finagle differ from the firms of the same activity and facilities. The economic direction of this company has another individual benchmark of the business launch and further development in real life.