task:

A VUCA environment can be dangerously disruptive, discuss how the VUCA environment can affect the corporate finance function of your firm.

SCENARIO Assume you work as the Finance Manager for a reputed multinational company. You have a team of 4 members (including you) managing the corporate finance function of your company which includes managing its local and international operations. Recently the CEO of your company attended a conference on International Corporate Finance. He had made some short notes and some key point from the conference (see below in italics) and request you to write a report highlighting its impact on your company. Adopting the traditional approach of corporate finance by MNC's in a modern business environment is becoming increasingly unproductive. Under the conditions of radically new uncertainty, conventional competitive advantages based upon economies of scale and resource efficiency are obviously losing their long-term importance. Unpredictable changes in the external environment reduce the value of conventional forecasts and traditional approach to corporate finance. Twin agency problem limits the financial globalization. Multinational corporations dominate world production and trade. They control a substantial portion of world production and total sales of a good number of products. The globalisation of the local economy has increased the importance of multinational corporations. Corporate governance is a field that has gained increased interest from academics and policymakers around the world in the past decade, spurred by major corporate scandals and governance problems in a host of countries. Firm in the modern world of business will have to face VUCA environment. SCENARIO Assume you work as the Finance Manager for a reputed multinational company. You have a team of 4 members (including you) managing the corporate finance function of your company which includes managing its local and international operations. Recently the CEO of your company attended a conference on International Corporate Finance. He had made some short notes and some key point from the conference (see below in italics) and request you to write a report highlighting its impact on your company. Adopting the traditional approach of corporate finance by MNC's in a modern business environment is becoming increasingly unproductive. Under the conditions of radically new uncertainty, conventional competitive advantages based upon economies of scale and resource efficiency are obviously losing their long-term importance. Unpredictable changes in the external environment reduce the value of conventional forecasts and traditional approach to corporate finance. Twin agency problem limits the financial globalization. Multinational corporations dominate world production and trade. They control a substantial portion of world production and total sales of a good number of products. The globalisation of the local economy has increased the importance of multinational corporations. Corporate governance is a field that has gained increased interest from academics and policymakers around the world in the past decade, spurred by major corporate scandals and governance problems in a host of countries. Firm in the modern world of business will have to face VUCA environment