Statement of Purpose for Finance Major, Essay Example

In the entire world, sound management practices are the force behind success of any institution be it private or government institution, profit making or non profit making as well as charitable institutions. The decisions that are made in all cadre of management levels are highly dependent on appropriate analysis as well as a clear understanding of the financial ramifications of the decisions so taken. Thus put, finance touches on most if not all management decisions as well as future strategies. My motivation to take finance major is informed by this understanding as well as the knowledge that it is an essential area of management as well as decision making that cannot be ignore by any business or organization that plans to be a going concern. Any decisions that are to be made at management level ought to put into account the likely ramifications of these decisions as the financial implications can render these decisions irrelevant.

I will enumerate the areas that require good understanding of finance as well as the benefits that are likely to stem from studying finance major. First the world right now is faced with a serious economic recession as well as ever fluctuating market prices. Organizations need to know the likely sources of credit facilities due to the ongoing credit crunch. Thus said, an appropriate evaluation of the credit facilities is necessary to determine the long-term implication of taking such credit facilities and thereby making a decision on the best of these facilities and thereby deciding which ones can be used in both the short run and the long term. To make these decisions, proper analysis by a financial expert is therefore necessary to help in making these decisions.

During the years preceding the current financial crisis, serious scandals rocked the market. These include the collapse of WorldCom and mostly notably the collapse of Enron and the subsequent collapse of their auditors, Arthur Andersen. These events shook the investor confidence to the core. These events not only jeopardized the stock exchange in general but also made many people quite sceptical on the stock market. For the investors who still seek to put some money in the stock market, it is imperative that they have finance  professionals who specialize in market speculation and thereby advising them on the best way to invest their money and by so doing boosting their confidence and increasing the trade volume in the stock market. This will also help rid the stock market of companies with dubious financial arrangements and others who are out to defraud the populace of their hard earned money.

The other area where finance major is very applicable is in the lending and credit institutions. This is especially in view of the volatility of the markets. The challenges facing the traditional business these days have been heightened by the emergence of e-commerce. This means that the business environment is being faced with new business structures. For the lending institutions to determine whether the business models as well as the business models being employed by the borrowing organizations are viable, the ought to have a finance specialist who helps analyse the business structure and forecast the viability of the business as well as the structures that the company has in place to address the inherent business risk. In this way the finance experts come in hardy to help in credit worthiness analysis.

The other area that as a finance specialist I will be of a major use is in helping government agencies design fiscal strategies. This is especially in such times as these of recession and global meltdown, the government needs to make sound physical policies concerning the stimulus package as well as the implementation of an appropriate tax regime to help stimulate the recovery of the economy. If one understands the best way to project the likely consequences of a given taxation system, then it is easy to design a good tax strategy to help boost economic recovery of the country.

In view of the above facts, it is easy to arrive to the conclusion that finance major has many opportunities to get employment as well as also obtain an opportunity to contribute in a major way to serious development as well as decision making. If I do finance major I will be at a position to get a good job as well as further my education to the point of being an authority among the finance practitioners. I will also play my part in social awareness by ensuring that the populace is not conned of their hard earned money by unscrupulous business as well as advising them on how best to invest their money. Finance is the axis around which businesses as well as all other organizations revolve. It helps ease decision making in management as well as ensure that these decisions are well informed. I believe that by studying finance I will be well equipped to be useful in the society.