Problem:
You are the manager of the high school athletic team division of On Your Mark, a manufacturer of athletic equipment and apparel, which has recently gone through the initial public offering (IPO) process and has become a public company. On Your Mark has annual sales revenue of approximately $50 million and makes seven unique and distinct products (that serve seven different markets). Each product is represented by its own division within the company and has its own group of sales, marketing, and manufacturing personnel. Some departments, including human resources and the finance division, support the entire organization. Operations consist of a single headquarters and a production (manufacturing) center.
In your role as division manager, you are responsible for compiling and reporting on budget/forecast data, for using financial information in decision making, and for assessing and valuing new business opportunities (which will ultimately be presented to upper management). You report directly to the plant manager; however, you work closely with the chief financial officer (CFO), and the accounting department's accountants assist you with your budget/forecast responsibilities.
You have been informed by the CFO that On Your Mark will be aggressively pursuing new business opportunities, which may include expansion through acquisition and the development and implementation of new products. As a publicly traded company, On Your Mark is scrutinized by bankers and investors. In fulfilling your responsibilities, you must keep this in mind, and you must instill a new sense of financial discipline in the organization.
Consider the role of the finance department at On Your Mark.
As a division manager, how might the finance department help you to successfully complete the duties of your job?
What role does a finance department play in valuing business opportunities for future acquisitions?
What are the ethical responsibilities of the finance department?
As a division manager, how might you form a good working relationship with and utilize the talents of the finance department?