STRATEGIC

POSITIONING
SALAZAR, LINDSY C
SALAZAR, AMABELLE A.
SORIANO, JONATHAN O.
TIBIGAR, CHANTAL M.
ULFINDO, DOROTHY M.
 WHAT IS STRATEGY?
•a plan of action or policy designed to
achieve a major or overall aim (Oxford
Dictionary).
•is an action that managers take to attain
one or more of the organization’s goals.
Strategy can also be defined as “A general
direction set for the company and its
various components to achieve a desired
state in the future. Strategy results from the
detailed strategic planning process”.
STRATEGIC POSITIONING- is
concerned with the impact on strategy of the
external environment, internal resources and
competences, and the expectations and
influence of stakeholders. Together, a
consideration of the environment, strategic
capability, the expectations and the purposes
within the cultural and political framework
of the organisation provides a basis for
understanding the strategic position of an
organisation
 THE GOAL OF STRATEGIC FINANCIAL
MANAGEMENT
•Strategic financial management means not only
managing a company's finances but managing
them with the intention to succeed—that is, to
attain the company's goals and objectives and
maximize shareholder value over time. However,
before a company can manage itself strategically,
it first needs to define its objectives precisely,
identify and quantify its available and potential
resources, and devise a specific plan to use its
finances and other capital resources toward
achieving its goals.
•Strategic financial management is
about creating profit for the business
and ensuring an acceptable return on
investment (ROI). Financial
management is accomplished
through business financial plans,
setting up financial controls, and
financial decision making.
•Financial management itself
involves understanding and properly
controlling, allocating, and
obtaining a company's assets and
liabilities, including monitoring
operational financing items like
expenditures, revenues, accounts
receivable and payable, cash
flow, and profitability.
•Strategic financialmanagement
encompasses all of the
above plus continuous evaluating,
planning, and adjusting to keep the
company focused and on track toward
long-term goals. When a company is
managing strategically, it deals with
short-term issues on an ad hoc basis in
ways that do not derail its long-term
vision.
The Elements of Strategic
Financial Management
1. Planning
2. Budgeting
3. Managing and Assessing Risk
4. Establishing Ongoing Procedures
 CONFLICT OF STAKEHOLDER
INTERESTS

What Is a Stakeholder?
A stakeholder is a party that has an interest in a
company and can either affect or be affected by
the business. The primary stakeholders in a
typical corporation are its investors, employees,
customers and suppliers. However, the modern
theory of the idea goes beyond this original notion
to include additional stakeholders such as a
community, government or trade association.
 Stakeholders can be internal or external.
Internal stakeholders are people whose
interest in a company comes through a direct
relationship, such as employment, ownership
or investment. External stakeholders are
those people who do not directly work with a
company but are affected in some way by
the actions and outcomes of said business.
Suppliers, creditors and public groups are all
considered external stakeholders. 
 Stakeholder conflict arises
when the needs of some
stakeholder groups compromise
the expectations of others. A
business has to make choices
which some stakeholders might
not like.
 It is important for a business to balance the
interest of its various stakeholders. Different
stakeholder groups have different priorities, for
example:
•Shareholders expect the business to make a profit
and receive a return on their investment
•Employees require good working conditions if they
are to be retained
•Potential investors may want to see evidence of
how a company responds to environmental issues
before committing money to the business
•Customers expect accurate and reliable products
 THE ROLE AND RESPONSIBILITY OF
SENIOR FINANCIAL EXECUTIVE
Finance Executive job responsibilities
include keeping a track of the financial
transactions, preparing financial reports,
reviewing financial statements, preparing
accounting ledgers and performing various
other financial tasks. In order to become
finance executive one needs to have at least
a bachelor’s degree in finance or
accountancy.
Financial Executive Job Responsibilities
•Finance Executive is required to study the financial
transactions made by the organization and prepare
financial reports based on the available data.
•Finance Executive needs to share the financial reports
with the senior company officials.
•Finance Executive may be required to suggest ways of
improving the company’s financial condition after
reviewing the financial reports.
•Finance Executive needs to prepare financial statements.

•Finance Executive is involved in providing inputs while

the senior company officials plan the budget.
•Finance Executive is also involved in preparing
finance policies and processes for the company.
•Finance Executive is required to look for ways to
raise the company’s funds.
•Finance Executive is involved in managing the
fixed assets of the company.
•Finance Executive is also required to manage the
company’s working capital.
•Finance Executive needs to perform internal
finance audits from time to time in order to ensure
that the company finances are being managed
appropriately.
 CORPORATE GOVERNANCE AND SOCIAL
RESPONSIBILITY

Corporate Governance
Corporate governance is the system of rules,
practices, and processes by which a firm is
directed and controlled. Corporate governance
essentially involves balancing the interests of a
company's many stakeholders, such as
shareholders, senior management executives,
customers, suppliers, financiers, the
government, and the community.
 Corporate governance makes companies
more accountable and transparent to
investors and gives them the tools to respond
to legitimate stakeholder concerns such as
sustainable environmental and social
development. It contributes to development
and increased access to capital encourages
new investments, boosts economic growth,
and provides employment opportunities.
 A lack of corporate governance can
lead to profit loss, corruption and a
tarnished image, not only to the
corporation, but to the society, or even
worse will influence global as a
whole. This form of corporate
governance management is also
designed to limit risk and eliminate
corrosive elements within an
organization.
 Poor corporate governance can create
potential conflicts of interests, expropriation
and unfair of minority shareholders. It only
benefits the parties involved but do not affect
value to other stakeholders, small
shareholders with little impact on the stock
price are brushed aside to make way for the
interests of majority shareholders and the
executive board.  It can greatly eroded public
confidence and tarnished society, or
worldwide as a whole. 
Corporate Social Responsibility
Corporate social responsibility (CSR) is a
self-regulating business model that helps a
company be socially accountable—to itself,
its stakeholders, and the public. By
practicing corporate social responsibility,
also called corporate citizenship, companies
can be conscious of the kind of impact they
are having on all aspects of society,
including economic, social, and
environmental.
 Corporate social responsibility is a
broad concept that can take many
forms depending on the company
and industry. Through CSR
programs, philanthropy, and
volunteer efforts, businesses can
benefit society while boosting their
brands.
 As important as CSR is for the
community, it is equally valuable for a
company. CSR activities can help forge
a stronger bond between employees and
corporations; boost morale; and help
both employees and employers feel
more connected with the world around
them.
 For a company to be socially responsible, it
first needs to be accountable to itself and its
shareholders. Often, companies that adopt
CSR programs have grown their business to
the point where they can give back to society.
Thus, CSR is primarily a strategy of large
corporations. Also, the more visible and
successful a corporation is, the more
responsibility it has to set standards of ethical
behavior for its peers, competition, and
industry.
 ETHICAL REQUIREMENTS AND CULTURE
INFLUENCE
What is ethics?
•At its simplest, ethics is a system of moral
principles. They affect how people make decisions
and lead their lives.
•Ethics is concerned with what is good for
individuals and society and is also described as
moral philosophy.
•The term is derived from the Greek
word ethos which can mean custom, habit,
character or disposition.
Ethical standards are a set of principles
established by the founders of the organization to
communicate its underlying moral values. This
code provides a framework that can be used as a
reference for decision making processes.
These standards are an important part of an
organization’s culture. They establish the
parameters of behavior that owners and top
executives expect from employees and also from
suppliers, at least to the extent of their relationship
with the organization.
 A few examples of these standards would be
responsibility, honesty, transparency or fairness
and even though they might be interpreted
differently by each person, companies usually
describe the founder’s perspective of each value to
avoid confusions.
These principles should serve also as guidelines
for decision-making processes to help employees
align their personal criteria with the company’s
perspectives as different ethical issues arise within
normal business activities.
What is culture?
Culture is the characteristics and
knowledge of a particular group of
people, encompassing language,
religion, cuisine, social habits,
music and arts.
The Influence of Ethics and Culture
Ethical norms and values that compete
with the altruistic approach depends on
many factors, but cultural factors such as
upbringing, religion, philosophical outlook,
education, and normative dos and don'ts
prevalent in the society all play a key role in
influencing and shaping ethical values.
 The influence of culture on ethics is
fundamental to the extent people with different
cultural value systems remain confused,
frustrated, and even aghast at the decisions made
by others. 
Ethics and culture affect decision making and
organizations that understand this fact and try to
improve the quality of their decisions by
articulating a clear-cut ethics policy and shaping
culture to the desired values, remain in good stead
to succeed.
THANK YOU!