Question

In: Finance

Discuss key decision areas of corporate financial strategy

Expert Solution

A corporate financial strategy add value to an organisation which can be used to identify and exploit value creating opportunities.

A financial strategy has two components:

1. Raising of funds

2. Managing the employment of these funds.

A corporqte financial strategy is thw overall business strategy which are implemented through internal and external stakeholders:

a. Shareholders - Investment institutions, family members, prospective investors.

b. Community - Local community, environmental bodies, public at large.

C. Suppliers - long term suppliers, raw material suppliers, sub contractors.

D. Government and regulators

E. Employees

F. Managers - Boars of directors, senior managers, other managers.

G. Customers

H. Debt holders - banks, investment institutions and individuals.

A corporate financial strategy states how the firm raise and deploy their funds. It allows rising of the company's value from creating competitve advantage and successful financial strategy to imcrease cash flow aand reduce the cost of capital.

Key decision areas of corporate financial strategy. The decisions made while implementing corporate financial strategy:

1. How large should be th3 asset base be.

2. How much the finance should be debt and how much in equity.

3. How much profit should be paid out in dividend and how much retained.

4. Should new equit be issued.

jeff jeffy answered 2 years ago

What areas of responsibility should be addressed by Jupiter’s corporate level strategy? The business unit level strategy?

What areas of responsibility should be addressed by Jupiter’s corporate level strategy? The business unit level strategy? What role does the functional level play? How do these strategies impact HR strategy?

Please explain ONE of the important financial decision making areas where business financial decision making techniques...

Please explain ONE of the important financial decision making areas where business financial decision making techniques can be applied to assist individuals and families in making better personal financial decisions. Discuss how and why the selected area is an important financial decision making area and explain how the application of the business financial decision making technique that you selected can help individuals make better decisions and reach their financial goals.

Analyse and evaluate the key strategic financial statements of an organisation. Apply and critique key corporate...

Analyse and evaluate the key strategic financial statements of an organisation. Apply and critique key corporate finance theories and techniques. Demonstrate critical thinking and analysis in showing how the finance function can make a significant contribution to the successful strategic management of an organisation.

Corporate strategy

Valerie is the CEO of an automaker and wants to ensure that her corporate strategy is leading to processes and behaviors that will foster a strong financial performance. Based on what you know about the flow of organizational culture, which of the following acts does NOT directly tie corporate strategy to performance? a. changing the company’s organizational structure to more closely align with its structure b. developing a control system that provides feedback on whether the strategy is working...

how national culture may affect corporate financial decision.

This is a classic corporate strategy decision. Do we raise additional capital to finance operations and/or...

This is a classic corporate strategy decision. Do we raise additional capital to finance operations and/or growth by issuing bonds (debt) or by issuing stock (equity)? In your own words, what would factor into this decision? Name some pro's and con's of each alternative.

Strategic HR Planning Discuss the Corporate Strategy impact on HR, Develop an HR Strategy linked to...

Strategic HR Planning Discuss the Corporate Strategy impact on HR, Develop an HR Strategy linked to the Corporate Strategy, Identify the HR Planning techniques to be used

1. Discuss differences between Corporate Strategy and Business Strategy 2. Reasons for diversification and challenges of...

1. Discuss differences between Corporate Strategy and Business Strategy 2. Reasons for diversification and challenges of diversification

Fraud examination and financial forensic skills have a key role in corporate governance. Appraise the key...

Fraud examination and financial forensic skills have a key role in corporate governance. Appraise the key roles in corporate governance, indicating how gaps in the roles may lend itself to corporate fraud.

. Discuss the key areas that organizations can borrow from the above case context of the...

. Discuss the key areas that organizations can borrow from the above case context of the military in their quest to attain excellent results and organizational success. Economic Times dated 14 March 2006) Nikhil Menon finds out what makes the Indian army probably one of the best – run organization. The Indian army can teach corporations a thing or two about managing their most important resource : human beings If you thought that the size of your company presented a...