Financial strategy, management, factor, formulation

1. FINANCIAL STRATEGY
NASRUN NISSA
2016201030

2. Strategic financial management
• study of finance with a long term view
considering the strategic goals of the
enterprise.
• stable income mix.
• proper adjustments to your budget.
• return maximum value to shareholders.

3. FACTORS
• Capital structure shareholding pattern
• Tax benefit
• Procurement of capital
• Working capital borrowings
• Reserve and surplus
• Relationship with Shareholder, Bank and financier
• Development and implementation of accounting
procedure

4. FORMULATION
1.Acquiring needed fund
2. Developing projected financial statement
3.Managing fund
4.Evaluating the worth of business

5. 1.Acquiring needed fund
• Debt and Equity
• Ratio of Debt and Equity
• ROI

6. 2.Projected financial statement/Budget
• How funds will be obtained and spent for a
specified period of time.
• Plan for allocation of firm’s resources
• cash budgets, operating budgets, sales
budget, profit budget, factory budget, capital
budget, expense budget, divisional budget,
variable budget, flexible budget, fixed
budget etc.

7. 3.Management and Usage of Funds
• investments and Asset mix decisions
• capital investment, fixed asset acquisition,
current assets, loans, advances, dividend
decisions
• optimum utilization of funds., and
relationship with share holders.
• efficiency and effectiveness of resource
utilization

8. 4.Evaluating the Worth of Business
1. determine net worth or stock holder’s equity.
2. measuring the value of firms through net
profits.
3. letting market determine a business worth.