Question

What are the top 5 to 8 critical questions that you could demonstrate to a student who would complete a course in Strategic Allocation of financial Resources and can synthesize the key concepts in strategic allocation of financial resource ans make a real world application

Answer 1

Strategic Allocation of Financial Resources (SAFR) refers to the procedure often adopted by an organisation and its team to decide where to efficiently apportion the scant resources, in the production of goods and services, to yield maximum benefits. The three fundamental questions that a society must answer because of limited resources and unlimited wants and needs are: What? How? and For Whom? i.e; What goods & services to produce? How to produce these goods and services & For whom to produce these goods and services.

However, some of the critical questions or rather say challenges that would emerge for a Strategic Allocation of Financial Resources Analyst (SAFRA) in a dynamic world would be –

1. Due to a paradigm shift of organisations globally in adopting technology-intensive tools in their operations, what methodology should/would be used to ratify in-house project expenditures?

2. In large Enterprises, where payments like remittance, wages, etc are ERP based and in SME’s where payments for the same are more manual-based, How would you design, bridge and allocate the cash and cash balances, keeping in mind constraints like time?

3. Since every other Company around the globe possess a certain amount of unrecorded gains, what will be the best approach in allocating such gains so as to ensure a reduced tax liability and burden?

4. In case an organisation holds different subsidiaries or franchisees at different locations, how would you ensure that the cheques and bank deposits arising out of it are efficiently allocated to a consolidated unit, error-free?

5. Suppose a Company want to issue an IPO to the public, how would you fortify an unbiased allocation process alongwith getting maximum subscribers?

6. In case of multiple foreign currency holding and bonds, how would you arbitrage the allocation process so as to outperform the unit, in comparison to other peer groups?

7. Due to a centrifugal tendency of employees and workers in an organisation to underutilize the resources, what will be the allocation strategies that would align the team to utilize the fullest capacity level?

8. Last but not the least, How would you prioritize financial resources so as to curb resource hogging?