what is strategic financial management

Expert Solution

Financial management refers to the controlling, allocating and obtaining a company's assets and liabilities and also includes monitoring operational financing items such as incomes, expenses, cash flows and profitability etc. Financial management is very important role in any business organisation because it is the essence of business. It means that business runs for the profits, so financial management revolves around this finance expansion in a business organisation.

The term strategy belongs to the top level management in a business organisation. Strategic financial management is a combination of financial management along with planning and continuously evaluating and keeping a track on the long-term goals. Hence, Strategic Financial Management is much wider concept. Hence, it can be said that SFM means not only managing a company,s finances but also managing them with intention to attain the goals and objectives of the business and maximising the shareholder value over time.

jeff jeffy answered 1 year ago

Organizations can differ on their view of what strategic financial management encompasses. What is an appropriate...

Organizations can differ on their view of what strategic financial management encompasses. What is an appropriate definition from your point of view (perhaps augmented by some Internet research)? Is your view consistent with usual current practice? Does the definition/scope depend upon company size, industry, and status as a new or mature industry? Please remember your views now at the beginning of the course in order to see what might have changed by the end of the course.

Question (strategic management) What involves the strategic management function? (a) What does formulating a strategy reveals?...

Question (strategic management) What involves the strategic management function? (a) What does formulating a strategy reveals? (b) Identify any two functions of a management information system.

What are the salient characteristics of strategic cost management and contract management?

. Ownership and management objectives in the process of strategic management - What is the importance...

. Ownership and management objectives in the process of strategic management - What is the importance of ownership objectives and what is their position in management of a business? - Specify managerial objectives and the role of managerial objectives in strategic management. - What is the difference between ownership, management and corporate strategy?

In strategic management SWAT what are the benefits and challenges?

is strategic planning and strategic management have the same meaning? what is more imortant?

Subject: Accounting for Management Decisions Discuss the strategic role of non-financial information in a comprehensive management...

Subject: Accounting for Management Decisions Discuss the strategic role of non-financial information in a comprehensive management accounting and control system (i.e. basic business processes, the limitations of traditional financial control mechanisms for helping to improve such processes).

Discuss (i) what Strategic Management Accounting is, (ii) in general how Strategic Management Accounting can provide...

Discuss (i) what Strategic Management Accounting is, (ii) in general how Strategic Management Accounting can provide information which meets the requirements of senior managers in seeking to realise corporate objectives, and (iii) specifically explain in what ways management accountants can adapt the services they provide to the new environment.

Define strategic management and explain the scope of SM. What are the essential differences between Strategic...

Define strategic management and explain the scope of SM. What are the essential differences between Strategic and Operation Management. Strategy relies on understanding internal and external contexts, explain why this is necessary.

What are the phases of "The Evolving Nature Of Strategic Management In Organizations"

Question