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March 2018 (published: 28.03.2018)
Number 1(32)
Home > Issue > Methods of choosing a financial strategy for industrial company
Minchenko L.V., Badaeva N.N.
In the current market relations and constant changes affecting the financial environment, the company very effectively plans its activities for the long term. At the same time, this is necessary, which allows us to respond in a timely manner to our changes. In this case, the financial strategy of the enterprise has a special significance. With the appearance of new commercial offers and the transition to a new stage of business development, the use of new methods of developing a financial strategy that more broadly and accurately contributes to the achievement of the company's goals. The purpose of this article is to study methodological approaches to the selection of a financial strategy for the development of industrial companies. The subject of the research are methods related to the choice of the financial strategy of enterprises. Business development requires an investment process, which is based on the cash flow management model. The financial strategy is to provide access to financial resources that allow to have the required level of liquidity and profitability. The efficiency criterion of such strategies can be the growth of the company's value. Therefore, the authors proposed and substantiated the cost approach to the selection of the company's financial development strategy. For the approbation, the calculation of the cost was carried out by 8 methods and the choice of the most acceptable ones was made. In addition, it is established that the application of one approach is inefficient for the enterprise, since the specificity of the company's activities is not taken into account. Therefore, the use of an additional system approach in assessing the cost to achieve the next level of financial efficiency.
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Keywords: financial strategy, cost management, valuation methods of enterprise, EVA, SVA, MVA, TBR, DCF, EBO.
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License
UDC 338.33
Methods of choosing a financial strategy for industrial company
In the current market relations and constant changes affecting the financial environment, the company very effectively plans its activities for the long term. At the same time, this is necessary, which allows us to respond in a timely manner to our changes. In this case, the financial strategy of the enterprise has a special significance. With the appearance of new commercial offers and the transition to a new stage of business development, the use of new methods of developing a financial strategy that more broadly and accurately contributes to the achievement of the company's goals. The purpose of this article is to study methodological approaches to the selection of a financial strategy for the development of industrial companies. The subject of the research are methods related to the choice of the financial strategy of enterprises. Business development requires an investment process, which is based on the cash flow management model. The financial strategy is to provide access to financial resources that allow to have the required level of liquidity and profitability. The efficiency criterion of such strategies can be the growth of the company's value. Therefore, the authors proposed and substantiated the cost approach to the selection of the company's financial development strategy. For the approbation, the calculation of the cost was carried out by 8 methods and the choice of the most acceptable ones was made. In addition, it is established that the application of one approach is inefficient for the enterprise, since the specificity of the company's activities is not taken into account. Therefore, the use of an additional system approach in assessing the cost to achieve the next level of financial efficiency.
Read the full article
Keywords: financial strategy, cost management, valuation methods of enterprise, EVA, SVA, MVA, TBR, DCF, EBO.
DOI 10.17586/2310-1172-2018-11-1-137-143