Professional Documents
Culture Documents
Business Strategy
Business Strategy
The financial function has always been important in business management. Irrespective of
differences in structure, ownership and size, the financial organization of the enterprise ought
to be capable of ensuring that the various finance functions: budgeting and controlling are
carried out with the highest degree of efficiency. The profitability of any business depends
largely upon the manner the financial functions are performed and related to other business
function.
When talking of the capital market, its operations within the economy cannot be over
emphasized. Thus, the demand for and supply of funds for business organizations, become a
both in increasing operational efficiency within the firm and allocating funds to productive or
These functions can only be achieved when there is proper planning and controlling,
coordinating and other elements of management combined effectively with the finance
function.
The role of the financial management is to create a system of managerial reports in order to
efficiently develop the business. In the economy of the future, the intelligent company will
put an end to the principle according to which a higher profit incurs a higher risk, as the
efficient management will reduce the risk to a great extent, by influencing the conditional
environmental factors.
strongly connected with the business controllable development and maximizing the profit.
Economic analysis and financial diagnosis identify the “areas” in which the firm wins or
loses money.
A modern entrepreneur must be acquainted with the news of his area, must be up to date with
the specialized knowledge, and must be able to reflect these in the decision-making process,
considering the modern evolutions. He also has to be very clear and precise in denominating
the principles and operational alternatives, he has to corroborate the set objectives and the
paths for achievement, he must respect the opinions and individuality of the human resources
he cooperates with, and to consider the positive elements coming from them.
The managers of the future firms will be relatively young but will have a solid background of
operational and business experience and will benefit from a highly logistic support from
training in specialized institutions in the country and abroad. Their concern for competence
will be highly interleaved with their activities which will lead to remarkable performances.
Problem statement
strengthen area of potential weakness or to capitalize on more effective opportunity for the
business.
All organizations, be it public or private need financing to attain better positions. Hence, the
problems of financing all business may include: High Cost of capital. Since the acquisition of
capital by business usually attract high financial interest rates these exposes them to risk and
the unsatisfactory profits is another phenomenon which hinder small business from paying
back.
business as managers or owners lack experience in financial management. Only possess pool
of expertise in production and sales. Also is the weakness in financial planning as they are