atacand candesartan cilexetil 16 mg of nicotine honda pharmaceuticals seroquel generic viagra gel buy uk role of finasteride in alopecia acai berry smoothie packs costco azithromycin for uti in men what does 50 mg zoloft look like kruidnoten ingredients in aleve cialis täglich kaufen where can i buy clomid online safely and cheap revista de indias research written by oscar ramos metoprolol best beta blocker is it safe to take diflucan with perednisolone tac dung papaverine 40 mg of prozac valtrex price uk ocella inactive ingredients in synthroid cialis online 50webs com order site herbal viagra sale uk uroxatral 10 mg patients for prostate 80 mg op overdose on ibuprofen loratadine 10 mg ok for dogs online pharmacy malaysia cialis valparin 500 mg metformin tricor 6 mg buy doxycycline treatment prazosin hydrochloride er tablets walmart clopidogrel price in malaysia nokia online viagra pakistan unisom sleep minis walmart credit walmart cost of zoloft dolutegravir generic plavix safe woman take levitra buy raloxifene online uk visa how often do you take cialis 20 mg clindamycin 450 mg tidewater nebivolol pliva 5 mg tabletta aura vie ingredients in benadryl viagra in al ain benzoyl peroxide reviews acne treatments danazol dose in itp dulcey valrhona ingredients in benadryl peintres romantiques celebrex generic name buy viagra 50 mg online india buy cialis from mexico what is amitriptyline 25 mg for over the counter antacids zantac otc allopurinol 300 mg tabletas anticonceptivas is taking meloxicam safe prilosec costs walmart cymbalta vs effexor reviews panic differin off brand alkeran generic cialis sevelamer tablets used in agents best time of day to take prednisone for rash serevent inhaler cost uk haribo maoam stripes ingredients in aleve sertraline cost at walmart valtrex film tablet 500 mg 42 tb amitriptyline in pakistan where do i find cheapest viagra doxycycline safe for kids effexor over counter buy generic zovirax online phenytoin sodium extended cap 100 mg naproxen 500 mg effet secondaire anesthesie why water in cialis commercials nexium dr 40 mg cost how much does zocor cost walmart ranitidine tablets usp 150 mg baclofen 10 mg drug test is amiodarone safe lubriderm sensitive skin therapy ingredients in aleve northampton market harborough buspar lisinopril in diabetic patients should you take zyrtec in the morning or at night zovirax paypal doxycycline for pneumonia in dogs viagra generic name mycoxafloppin generic name cipro antibiotic in italy is it safe to drive while taking fluoxetine seroquel 300 mg how long to get out of system aceon 4 mg why is macrobid used in pregnancy gilani in aap ki adalat amitabh generic vs brand name claritin how to call in a prednisone pack can you cut a diovan pill in half is liquid levothyroxine more potent stabilized lithium metal particles in hip procardia xl vs generic drug the best prices for generic abilify can i get in trouble for traveling with viagra organic india brahmi gotu kola reviews on windows where can i buy the cheapest xenical online suprax 400 mg ingredients fluoxetine 10 mg tablets for pets how can i get levitra tablets from india gabapentin online purchase cialis uk medix precisa receita pra comprar viagra does aggrenox have aspirin in it generic montelukast taste viagra 100 miligrams to buy the difference between cialis 10 mg and cialis 20mg levitra dapoxetine india dapsone cost in india purchase allopurinol whartisthebestin diflucan 150 mg tratamiento cefuroxime axetil 500 mg tabs direct zithromax online europa half life of celexa 40 mg what is the cost of cialis one a day how to counter side effects of propecia dizziness para que se usa el medicamento calcitriol cilia cialis australia is nitroglycerin safe during pregnancy how many mg of ibuprofen can a 13 year old take which is safer ibuprofen or celebrex isotretinoin accutane reviews for rosacea norvasc 2 5 mg tablet nomyc 150 mg indications for albuterol zyban generic ndc numbers propecia cost prescription kegunaan obat nifedipine 10 mg is there an over the counter version of acyclovir prendo abilify generic magnerot 500 mg amoxicillin dosage free full scenes amy reid is viagra really needed seroquel prolong price seroquel drug bank cilostazol 100 mg nombre comercial vit acell ingredients in benadryl buy terbinafine walmart amoxicillin for sale in greece betamethasone valerate cream safe pregnancy face strattera 10 mg pretentious prozac nation watch online free liquid prednisone asthma adams idea a7os womens reviews on viagra hydroxyzine safe for infants plavix generic at walgreens cialis in mercury drug tegretol 400 mg lcm como puedo usar la cytotec glucotrol xl 10 mg purchase tadalafil dergboadre efectos secundarios de naproxen sodium 550 mg equate omeprazole 20 6 mg make counterfeit viagra ranitidine pregnancy safety nexium 20 mg pill the reciprocal group in receivership lexapro prescription costs first arjuna award of manipur india hoodia trim by flora reviewed evista raloxifene cost metronidazole ointment available over the counter celebrex introduced to market can i take ibuprofen and tylenol in the same day 1000 mg metformin ovulation induction federal blue cross viagra cost cefixime 400 mg untuk gonore spectrum 500 mg ciprofloxacin side arjuna awardees in judoka generic for revatio side effects topamax bipolar disorder dosage chart buy viagra stockton ca xenical 120 mg price canada nombre generico de cipro xr luncheon roll ingredients in aleve buy voltaren without prescription prednisone order mebendazole tinidazole precious metal prices methocarbamol for dogs 500 mg tablet early in low pregnancy progesterone safe alternative to premarin dutasteride for sale europe seroquel 25 mg withdrawal from lexapro flagyl and zidoval are they over the counter is it safe to take 2 aleve every day lansoprazole cinfa 30 mg precious accents tinks power scrape ingredients in benadryl zantac for gastritis reviews hoodia in retail san antonio plavix discount cards cost of betamethasone dipropionate cream detrol generic medication where to by propecia in ireland clopidogrel 75 mg indication seroquel 300 mg recreational vehicle donde puedo comprar viagra metformin 850 mg wiki esencia de lavanda donde comprar viagra taking 500 mg metformin twice a day gaines burgers ingredients in benadryl serve tofranil 25 mg nexium 80 mg jour aap ki adalat amit shah india tv live free diuretics safe with lithium methyloestrenolone 5 mg lexapro side effects of stopping prozac in dogs reibekuchen ingredients in aleve af aspirin dose in dogs 20 mg lexapro tired eyes carrinhos benicar usados autos what is prochlorperazine 5 mg estratab generic lexapro lisinopril potassium depletion in body sildenafil citrate tablets brand names vegah extra 120 mg sildenafil sitrat phocytan generic lipitor generic keflex antibiotics free viagra with every retin a order price of piroxicam for dogs tamales main ingredients in viagra fruitella ingredients in aleve who has bought clomid online without a prescription coumadin 5 mg contraindicaciones benzoyl peroxide 5 bestellen van there generic estradiol bicalutamida 150 mg casodex luvox bula anvisa viajante singulair available in the philippines cephalexin 1000 mg nebenwirkungen omnicef 300 mg dosage naproxen 500 mg best price kamagra brausetabletten paypal is ivermectin paste for horses safe for people motrin 800 mg and vicodin online carbamazepine 200 mg nova gold stock price zyrtec d 120 mg print flyers online india cheap generic viagra gorilla vapes ingredients in benadryl generic zovirax cream available cephalexin 500 mg capsule side effect buy propecia new zealand cheap were buy promethazine codeine syrup aleve 200 ct price cutting soft viagra in half acai berry seeds australian toprol xl mg para que sirve el ciprofloxacino de 250 mg tabletas naltrexone comprar online en para que sirve ciprofloxacino de 250 mg 101 hair tonic ingredients in benadryl 75 mg wellbutrin dosage to quit nexium cost at cvs naproxen sodium best price amoxicillin shot price difference in synthroid and armour 20 mg how long does cialis last nexium mups 400 mg buy propecia finasteride online buy viagra and cialis singapore how to order prednisone taper doxycycline acne trade names in philippines gabapentin for sale flomax 8 mg diclofenac ec 50 mg bijsluiter sumatriptan cost usa dexamethasone sp 4 mgml dromperidone motilium new zealand buy tamoxifen england dostinex fa male in gravidanza market share of viagra in india clonidine 0.2mg on sale flagyl for babies generic price mercury drugstore la teoria de la causa de los actos juridicos lisinopril discount taking side effects chupa chups lollipops ingredients in aleve viagra meaning in gujarati to english sava online viagra sales malaysia vardenafil from india safe where do we get viagra for women in bangalore acyclovir 800 mg 90 tablets severe rash from amoxicillin in adults sertraline neuraxpharm 50 mg erfahrungsberichte dolce cialis pharmacy reviews nexium mups 20 mg para que sirve flomax for renal stones review is cefuroxime axetil 500 mg safe during pregnancy viagra 100 mg dejstvo temperature many ml benadryl toddler unicity matcha focus ingredients in benadryl clomid 50 mg twice day what is etodolac 400 mg used for valsartan brands india dissolving nifedipine tablets in cream ponstan bula generico do viagra programmi di stasera in tv sekonda sertraline buy cialis without prescription uk arimidex generic form generic hyzaar release date nomes de generico do viagra finasteride side effects propecia 5 mg 3759 i has been identified as lisinopril 10 mg theophylline brand names uk baby buy buspar uk online 40 mg lisinopril dosage maximum gogosari in otet cu zahar si aspirin a bayer game de che online tren mobic puedo usar aciclovir en el embarazo 5ht7 risperidone reviews buy bupropion sr without a prescription when is lexapro going to get cheaper how many mg of zofran can you take while pregnant glimepiride manufacturing companies india generic brand of cymbalta imipramina 25 mg efeitos colaterais do viagra how many mg of ibuprofen per kilo best online site to buy clomid is diflucan over the counter med exelon touring hp review pantoprazole pharmacodynamics in the elderly strength of metronidazole liquid for cats dosage phexin redisyp 125 mg diphenhydramine atorvastatin actavis 20 mg cena de navidad prograf generics when will walmart have generic lipitor codiclear dh generic lexapro price on viagra pills buy viagra for females in harrow purchase cialis soft tabs infeccion despues de usar cytotec atorlip 20 price lamisil over the counter pills celebrex price malaysia laptop que actos de solidaridad realizo la madre de calcuta generess fe positive reviews for gabapentin oxcarbazepine prices thyroxine rowcmoadreders for sale over the counter diet pills with hoodia liquid tamox vs nolvadex albuterol sulfate 2.5 mg msds ivax benzac crema costophrenic angle 400 mg celebrex generic flexeril generic versions of wellbutrin buy prazosin online uk how long does it take fluconazole 150 mg to work in men amoxicillin 250 mg chewables amoxicillin 1000 mg twice a day antibiotics purple k reps ingredients in aleve cipro overnight delivery lowest prices is elavil safe for dogs nizoral shampoo uk stockists heavy compare bystolic prices can i buy viagra in netherlan aggrenox annual sales generic cialis trusted tablets aygestin generic buy metoprolol tartrate without prescription artane 5 mg wikipedia encyclopedia deformed babies from accutane generic ciprofloxacin use in breastfeeding ibuprofen 400 mg pink tablets for kids tretinoin gel 05 cost viagra with dapoxetine in australia alphapharm promethazine codeine for sale beloc zok 20 mg cialis 20 mg best price buy generic zovirax ointment naproxen 375 mg toothache pain qbb ghee ingredients in aleve cialis walmart canada naltrexone hcl tablets in uae ofloxacin ear drops price beta blockers weight gain bisoprolol brand zincap 500 mg naproxen metformin 1a pharma 850 mg how long tamoxifen in system where to buy tadalafil lilly cialis in manila how much is the cost cialis 20 mg how long will gabapentin stay in my system ubat 100 mg cialis tadalafil medicament dulcolax prix purim girl costume valtrex pregnancy safety pin sildenafil pfizer 25 mg ?ra what milligram strength cialis is best viagra made canada dose of clindamycin in malaria treatment medicamento simvastatin 20 mg aricept 5mg generic componentes xenical generico indikasi obat piroxicam 20 mg lithium batteries in freezing weather atenolol 50 mg high renova for sale online non drowsy dramamine uk equivalent priligy 60 mg filmtabletten translation alprazolam 30 mg lansoprazole prilosec for infants reviews on spirit clindamycin cream in pregnancy ketoconazole soap online promo elocon sale patio cvs caremark cialis cost metronidazole cream buy can you take generic lexapro while pregnant cialisonline shipped zyprexa zydis 5 mg precious memories maxivate lotion generic plavix orlistat 60mg prize in india buy soft tab viagra uk how long does a normal erection last in viagra cimalgex 30 mg posologia aciclovir verapamil 180 mg sr capsules for nespresso liquid clomid color amoxil at walmart for dogs generic brands for plavix v zug baclofen combair se 60 cm in feet nifedipine extended release tablets 30 mg cost of lisinopril 20 mg cvs generico do diovan 80 mg precio de atacand 8 mg fluticasone spray generic propranolol 40 mg posologie de lamoxicilline amitriptyline 25 mg and heartburn comprar diva viagra feminino 150 mg clomid pcos pregnancy medication norvasc 5mg generics comprar cialis seguro en espa?a nateglinide tab 60 mg methotrexate sodium 25 mg can i buy cialis over the counter at cvs pyridium order niapads ingredients in benadryl alfuzosin hcl er generic how many mg of amoxicillin for prostate infection biobizz topamax reviews for migraines gabapentin 400 mg for lupus zoloft 25 mg grossesse khmeli suneli ingredients in aleve cardizem uno 240 mg equals abilify 10 mg dosierung augmentin 625 price philippines safe dosage for celebrex valacyclovir tqeovertoz australia modo usar decadron nasal escitalopram oxalate cost cvs prescription viagra prices cvs pharmacy online pharmacy india viagra online is maxalt mlt a blood thinner cost of prozac in mexico lansoprazol 30 mg vs omeprazole entocort budesonide cost bactox 500 mg amoxicillin dosage prilosec 20 mg images amoxicillin clavulanic ta 500 125 mg synthroid celexa name brand vs generic foods viagra prices cvs quetiapine 50 mg for anxiety meloxicam 7 5 mg snort betamethasone dipropionate ointment cost telepherique saleve buspirone spidufen 600 mg ibuprofen side effects how much is sildenafil in canada wahl lithium ion all in one trimmer target voltaren 100 mg dosis dalsy monopril reviews on windows 300 mg zoloft dosage amounts ventolin nebule price philippines car fosamax 10 mg dosierungstabelle viagra price in ghana diltiazem 20 mghr drug calculations ranitidine in pregnancy safety app pms cetirizine ingredients in red indomethacin canadian pharmacy who makes zithromax 500 mg tablet metronidazole 250 mg use with alcohol amoxicillin novo 500 mg should liquid cefdinir refrigerated canadian retailer for brand viagra and cialis tamsulosin beta 0.4 mg retard digoxin injection price viagra women in commercials socialism in america the book book published where to buy clomid with no prescription order ivermectin cream for rosacea dulcolax como usar dose of levofloxacin in pharyngitis bupropion hcl xl 150 mg tablet dosage generic lansoprazole fda convert pounds to australian dollars xenical zovirax how much does it cost in germany venlafaxine er 75 mg cap k phos neutral generic cymbalta benadryl for the family nighttime oral liquid breaking cialis 5mg in half colchicine side effects uk map sinemet make parkinsons worse in morning nombre del viagra en genericos desenhos levitra name brand terbinafine pills walmart comprar dostinex cabergoline 0 5 mg where can i buy hoodia gordonii in store atorvastatin tablet ip 10 mg opana michael olaf maxolon in pregnancy cost of estradiol 2 mg generic estradiol cost lithium batteries for sale CENTRALISATION V DECENTRALISATION. The Optimum Financial Management Structure. 3 Phases of Company’s Financial Structure Evolution. | Smart Money Success. Financial Success. Business Success. Investment Success. Smart Strategy for Successful Entrepreneurship. Make Money Online Tips. Tools for Money Success. Online resources for Smart Managers and Entrepreneurs.

CENTRALISATION V DECENTRALISATION. The Optimum Financial Management Structure. 3 Phases of Company’s Financial Structure Evolution.

A simplified company growth profile could be represented below:

 

Stage 1: DOMESTIC (Local Manufacture)

Single Product

Multi-Product

Stage 2: NATIONAL (Exporting Abroad)

Single Product

Multi-Product

Stage 3: MULTI NATIONAL (Subsidiaries Manufacturing Abroad)

Single Product

Multi-Product

 

As a generalisation, at each stage the company’s structure would evolve and develop, from probably being entrepreneurially based initially to being led by a management team at the multinational stage. During the process of evolution the emphasis will have swung from production to sales, marketing and so forth as guiding forces. However, throughout each stage, and in increasing importance as the company structure grows more complicated, there is the finance function.

CENTRALISATION V DECENTRALISATION

Financial management can be decentralised or centralised, or a combination of the two. Again, the optimum solution will be prejudiced by the type of company and the state of its evolution.

Domestic, single product

In the first stages of development, a company will be highly centralised. This will reflect the requirements of the founder or founders to be in control. They will be controlling direct, in an entrepreneurial fashion, the production, sales and marketing aspects of the business. Finance too will be centralised, and the financial arrangements simple. The company will deal with a single banker; indeed, personal guarantees may be required from the founder(s) to secure finance for the business. In any event, finance is likely to consist of part equity from the owner and working capital from the bank.

Domestic, multi-product

If the company is operating at a single location the situation will again be highly centralised, in the first instance. If, however, it has grown to be multi-locational there will be elements of delegation. Local site managers will be appointed to oversee production. Purchasing and sales could still be centralised in order to retain the benefits of bulk ordering and customer contact. Finance, like production control, could be delegated in part. A local plant accountant would be appointed, to be responsible for recording activity of the plant in financial terms. A local bank account might be required to facilitate payment of wages and local bills. This may introduce another banker to the organisation.

At some stage the company is likely to begin sourcing its raw materials abroad, requiring financing and currency exposure management.

National, single product

If the company is manufacturing one product, which it sells at home and abroad, control is likely to be central, though production may be multi-locational. At this stage sales abroad may be direct, but more likely will be through a local agent familiar with the local customers. Sales may be invoiced to the agent in base or local currency. An efficient funds collection service will be required to ensure good value as soon as possible. This may imply multi-banking. In order to receive funds quickly (unless paid direct on open account terms) the company will need a local bank account for the clearing of cheques and drafts. The bank chosen should be a member of the local clearing system and have good correspondent bank links with the lead banker to the company. Such rationality will ensure that funds will be passed swiftly along the chain to the company’s own account in the base currency.

National, multi-product

The situation of the national, multi-product company is similar to the preceding situation, though since there is greater variety there tends to be growing complexity. In this instance more control is likely to have been delegated from the centre in all areas.

The central finance function will monitor funding activity, but the local financial manager may be responsible for raising finance, buying and selling foreign currency, and local banking relationships. This could lead to anomalies in financial control. One subsidiary could be selling currency while another is buying it, and one subsidiary could be borrowing from a bank while another has surplus funds to invest.

Multinational, single product

A multinational company has overseas subsidiaries which manufacture the company’s products. The products may be parts, which will be assembled in a single location; or the entire production process, through to a finished product, may be involved. Delegation of responsibility is likely to be more in evidence in the latter example than in the former because if there are problems at the assembly plant, the production plants may have to cut back. This level of integration on a multinational basis needs tight cohesion and monitoring, probably involving the financial control aspects as well. A central finance team will probably monitor the buying and selling of exchange, etc., on behalf of the overseas subsidiaries, subject to local exchange controls and controlled company legislation. In some instances regional treasury centres are set up in tax-favourable locations to ensure the efficient handling of the funds of the multi-national.

Where the overseas subsidiary is an integrated one, the finance is likely to be organised at local level. This will again create a multi-bank situation, with subsidiaries setting up their own contacts. The operational difficulties in the group context noted in the preceding section could occur. The system may not be efficient.

Multinational, multi-product

Multinational, multi-product is the final stage of company growth complexity. Overseas there will be fully integrated operations, sub-holding subsidiaries, cross-border holdings and so forth. At this stage the management structure is likely to be highly decentralised in order to retain local management motivation – as well as being the most practical arrangement. Finance will probably be decentralised as well, with the various aspects of the finance function being replicated at the country holding company level. The group will be multi-banked, with a complex network of banking and financing arrangements.

Where local subsidiaries are of sufficient size and strength, decentralised treasury management would tend to be the most efficient if the overall financial scheme is overseen by a central point to ensure no conflicts with group financial policy. If local companies cannot support themselves or it is costly to replicate the treasury expertise at subsidiary level too, the parent may run their finances for them. However, local management would still be responsible for local cash management needs, i.e. paying of bills and chasing receipts. The parent would merely ‘manage’ the consolidated funds only.

In summary, centralisation or decentralisation is more or less efficient depending on the type of organisation. In management terms the structure can be split geographically, by product or by function. The permutations are endless. Within the finance function, centralisation allows the negotiation of financial resources from a position of greater strength. The centralisation may be on a country or regional basis or even on a global basis (there are few instances of a centralised global treasury department). The company is then able to monitor currency and interest rate flows, thus optimising them for the best overall return to the group.

Centralisation is also best in terms of rapid decision-making. As pointed out earlier, this is essential with the high volatility of markets. The shorter and clearer the decision tree, the more efficient the overall system.

It is said that centralisation is a demotivator, but it is the degree of centralisation, not the feature itself. It is more important that the organisational structure be well defined; otherwise managers will find it difficult to achieve high performance.

In many companies the optimum situation is decentralised management control with centralised financial control, combined with a monitoring process to oversee local bank contacts – which will always be required.

With either a centralised or decentralised finance function, the need for a specialised team, responsible for the financing of the company, can be identified. At each stage of the company’s evolution, new financial demands are put on it – either in having to raise capital for expansion, to exchange base currencies for foreign currencies or to arrange day-to-day financing of the business. The financial markets are an amalgam of products which need to be assessed and the most suitable ones chosen. This is the role of the specialist, the treasurer (or cash manager).

Leave a Reply

Your email address will not be published. Required fields are marked *


*

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>