PART 1
Wealth management can be defined as the efficient and effective implementation of the policies and tasks necessary to satisfy the customers and stakeholders in terms of handling their finances and wealth. Wealth management focuses on the careful management of the processes involved in handling and securing the wealth of an individual or firm (Chase, 1998).
More often than not, small companies and individuals don’t really have the capabilities to implement wealth management. Instead, they engage in activities that various schools of management typically associate with wealth management. These activities include the monitoring of expenditures and savings, income development, production and distribution.
However, wealth management deals with all operations done within companies and organizations. Activities such as the management of purchases, the control of inventories, logistics and evaluations are often related with wealth management. A great deal of emphasis lies on the efficiency and effectiveness of processes. Therefore, wealth management includes the analysis and management of internal processes.
Tommy Hilfiger, Inc. will be the model business entity that will be used in this research based on their history in wealth management.
In order for wealth management to be successful in creating money and lowering the risk for the employees and management of Tommy Hilfiger, Inc., financial planning and portfolio management is a necessary function within the company. In manufacturing companies this process is often very difficult because of the fast rate of change and the occurrences of unplanned events. This company uses several methodologies depending on the rate of demand of the customer and the price of the products. Nevertheless, the objectives of Tommy Hilfiger, Inc. for every transaction do not change: efficiency and effectiveness.
Wealth management is being implemented by this company in order for its activities and resources to be coordinated over time. This enables the company to achieve its goals with minimal resource utilization. Wealth management also enables the company to monitor the progress of their plans at regular intervals and maintain their control over operations. Wealth management within Tommy Hilfiger, Inc. involves four elements: scheduling, labor planning, financial planning, and cost planning.
- Scheduling involves the specification of the beginning, the length or the duration, and end of the planned activities.
- Labor planning involves allocating the necessary personnel and delegation of responsibilities and resources
- Financial planning involves identifying the types and needs in terms of finances.
- Cost planning involves determining the costs and the possibility of their occurrence.
PART 2
A mutual fund pertains to a type of investment that gathers and collects money from many investors and invests the money in stocks and/or other securities. In a mutual fund, the person in charge of the handling of the combined funds trades the fund’s securities in exchange for the dividend or interest income. These are then given to the respective stakeholders. The percentage of the shares of a stakeholder in the mutual fund, typically termed as the net asset value (NAV), is computed based on the total value of the mutual fund divided by the amount of shares bought by the shareholders (Chopra, 2001).
The occurrence of mutual funds within the economy reflects the growing difficulty in the management of individuals and organizations that require the effective use of valuable resources such as money. This is the reason why businessmen engage in mutual funds, since they believe that it is the most effective way to coordinate their financial resources through the application of analytical methods derived from fields of studies such as mathematics, science, and banking.
Through the process of mutual funds, financial problems and risks are avoided in different ways and alternative solutions are then relayed to the shareholders. The end result is continuous money-making and financial security for every shareholder. The shareholders can also have the opportunity to select the appropriate course of action in line with their immediate or long-term goals. More often than not, mutual funds directly solve complicated issues such as top-level strategy, resource allocation and pricing.
Mutual funds actually may vary according to the structures and philosophy of the shareholders. But most of the time, it centralizes operations in one person who manages or handles the combine funds. Mutual funds may also have the possibility of working closely with top level managers in order to identify and solve a variety of problems.
Critical Mutual Funds Improvement Factors
For the mutual fund to become a viable player in the industry, the following improvement factors are critical:
· Financial Stability
Financial stability is crucial especially in the pursuit of mutual fund management and development activities. It is important for the shareholders to remain updated with the latest developments in the economy to be able to stay competitive in the market.
· Marketing Strategy and Distribution
High brand awareness among the mutual fund shareholders has created the need for aggressive marketing, and access to strong distribution channels is critical for the introduction of new models.
REFERENCES
Chase, R 1998, Production and Operations Management; Manufacturing and Services, Richard D. Irwin, Inc., USA.
Chopra, S 2001, Supply Chain Management, Prentice Hall, USA.
www.tommy.com. Retrieved May 2, 2006
Credit:ivythesis.typepad.com
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