Financial Management Research Paper Example | Topics and Well Written Essays - 1750 words

Financial Management - Research Paper Example According to the latest financial report of Google.inc it has been found that they are in a great position when it comes to debt ratio, the debt ratio is 0.02 which means that they have more assets than debt and the debt can be paid off very easily so the company need not worry about anything as far as the debt ratio is concerned. Following are the most important ratios of the company: Current ratio: 5.8 Quick ratio: 5.6 Asset Turnover: 0.6 Return on Assets: 14.0% Return on Equity: 17.3% All these ratios clearly show that Google inc is financially very sound and there is nothing to worry about for the company but they have several competitors and can’t afford to rest on their laurels. Business Model Employees are more than willing to work for Google because the organization has established itself as one of the best companies in the world, in the year 2007 and 2008 Google was the top company to work for, it is one of the very best companies across the globe, they treat their em ployees with a lot of respect and they take special efforts to motivate them. All this success is because of their leadership and cross-functional organizational structure. Google employs the rule of â€Å"70-20-10† this means the employees can communicate directly with each other, this much improved communication system has been the key to success. Formal channels are normally avoided by the company to avoid any misunderstandings, the staff is always highly motivated because they have a sense of belief that they can contribute immensely towards the company, this sense of belief keeps them motivated and inspires them to keep performing for the company. Cross-Functional Leadership Structure of Google Features of Cross-Functional Leadership Structure: â€Å"To meet the many demands of performing their functions, managers assume multiple roles. A role is an organized set of behaviors. Henry Mintzberg has identified ten roles common to the work of all managers. The ten roles are divided into three groups: interpersonal, informational, and decisional. The informational roles link all managerial work together. The interpersonal roles ensure that information is provided. The decisional roles make significant use of the information. The performance of managerial roles and the requirements of these roles can be played at different times by the same manager and to different degrees depending on the level and function of management. The ten roles are described individually, but they form an integrated whole.† (Henry Mintzberg). Another big challenge which the leaders of today face is the daunting task of decision making. Decision making is the most challenging task for any leader. One wrong decision can change many things around in an organization and those changes will surely be for the worse of the organization on the other hand one good decision can help the organization in more ways than one. Decision making is a very delicate process, numerous things h ave to be kept in mind, a leader just cannot go on making wrong decisions because that would result in disaster, even one wrong decision can be disastrous for any organization so considering all these things it becomes imperative that leaders analyze the situation and make their decisions wisely, if a leader analyzes a