Dasha Varvarina

FAQs for Cash Managment covered are:

1. What is the difference between a firm’s cash cycle and its operating cycle?

2. What is float? Why is it important to cash management?

3. What is the difference between permanent working capital and temporary working capital?

4. Explain the strategies businesses can use to finance their assets with short-term and long-term funds.

5. What is the difference between pledging accounts receivable to secure a loan and factoring accounts receivable?

As well as exercises.

Standard Bank Group, also known as Stanbic, can be considered as being one of the leading banking group in Africa, whilst in South Africa, it falls into the category of the four biggest banks. The Standard Bank Group has its branches in 32 globally with 20 located in Africa alone. Consequently to its founding in 1862 it originally operated under the moniker ‘The Standard Bank of South Africa’ it has since become a ‘leading integrated financial services group on the African continent.’ One of the main cited key performance indicators by Sanbic is their ability to capitalize upon the underlying momentum of growth within the African continent, which they have a superior access to due to the foundation that they have built over their 150 years in the banking sector. Furthermore, a further KPI that is accounted for by Stanbic is that they deem themselves to be better equipped to innovate due to their predisposition for innovation, accountability and effectiveness which typically is incompatible with larger organizations.

Primarily, we shall discuss the main features of capital management by the group, meaning the strategy implemented throughout Standard Bank to maintain sufficient and equal levels of working capital, current assets, and current liabilities. This ensures that the financial institution is able to meet its expense obligations while also maintaining sufficient cash flow and is primarily related to short term financial decisions. One of the main drivers of capital management of the bank is cited as being ‘Integrated Thinking’ which can be further subdivided into six categories, as adapted from Integrated Reporting Council (IIRC) in the International <IR> Framework, which are: financial capital, human capital, social and relationship capital, intellectual capital, natural and manufactured capital.

Within this essay, we shall investigate and analyze the ethical and moral dilemma created by the large food and goods conglomerate Nestlé, who extensively marketed infant formula to lower-income mothers and parents in emerging economies, from the 1970s till today. Firstly, we shall briefly outline the company itself and the various marketing techniques that it has used throughout its commercial life in order to contextualize the specific issue at hand. Consequently, we shall evaluate the ethical issue, which is presented to us; subdivide it further into its various components, so that we are able to assess it. Subsequently, the case will be analyzed from the perspective of the various philosophical and ethical theories, which have been studied, in order to ascertain under which, if any theory Nestlé’s conduct can be justified and to what extent can the company’s behavior be seen as immoral.