This document discusses finance strategy. It covers acquiring capital from various sources like equity or debt. It also discusses developing projected financial statements and budgets to examine expected results and proper utilization of funds. Management and usage of funds is important for strategy implementation regarding capital investments, assets, loans, and dividends. The document also discusses evaluating business worth through net worth, future benefits, and market valuation compared to similar companies. The overall goals of a finance strategy are to provide an appropriate financial structure, explore strategic alternatives, gain competitive advantages through lower funding costs, and increase shareholder returns.

1. Topic- Finance strategy

3. Acquiring Needed Capital / Source of Funds
/Procurement of Funds
Developing Projected Financial Statements /
Budgets
Management / Usage of Funds
Evaluating the Worth of Business

5.  The right amount is required at right time at right
cost.
 While procuring capital businessman should know:
i. How much funds are required ? (i.e estimation)
ii. From where we can procure funds ?(Equity or debt)
iii. At what cost ? (Rate of return)
iv. For how long? (Long term or short term)
 Let us see it with the help of small video…..

7.  A financial budget is the document that details how
funds will be obtained and spent for a specified
period of time.
 Budgets allows an organization to examine the
expected results of various actions (implementation
decisions) and approaches.
 These help in proper utilization of funds

8.  Usage of funds is important since it relates to the
efficiency and effectiveness of resource utilization
in the process of strategy implementation.
 The important factor regarding which plans and to
be made are: Capital investment, fixed asset
acquisition, current asset, loans and advances,
dividend decisions and relationship with
shareholders.

9.  There are various methods of determining business
worth which can be grouped in 3 main approaches:
I. Evaluating the worth of business by determining
its net worth or stockholders’ equity.
II. By measuring the value of future benefits its owner
may deprive through net profits.
III. By letting the market determine the business
worth .Based on the firm’s worth on selling price of
similar company and make a comparison

10.  Finance strategy aims at providing appropriate
financial structure and meet its overall objectives.
 Explore various strategic alternatives such as
acquisition or investment in product or new plants.
 Distinct competitive advantage through cheaper
funding and flexible ability to raise capital.
 Helps company leverage its resources to increase
the returns for shareholders.

11.  Strategic Management- Text And Cases- V S P Rao And V
Hari Krishna
 Strategic Management Concepts and Cases- Fred R.
David and Forest R. David
 Strategic Management- Strategy Formulation And
Implementation- John A. Pearce II And Richard B.
Robinson, Jr.
 CA IPCC Strategic Management Module- ICAI
 Google – Slideshare – PPT by Prof. Prashant Mehta
National Law University, Jodhpur
 Google – Wikipedia – Finance Strategy