The financing strategy is based on the choice of sources (internal and external) of own and borrowed funds for business development. For example, if start-up companies (startups) attract third-party investors, the financing strategy is built on borrowed funds from external sources.
Varieties of financing strategies
Depending on the current position and development strategy of the company in the market, one of four financing strategies is applied.- Rapid growth strategy. Free funds of the company are invested in current assets: more raw materials are purchased, the main production facilities are actively updated and repaired. variable costs(additional travel expenses, investment in staff training, overtime pay) are financed by short-term loans. Financing under the rapid growth strategy is relevant for conquering a new market segment, expanding the product range.
- Domestic financing strategy (the "ideal"). Operating activities and current liabilities of the company are covered exclusively by borrowed funds. Such a strategy increases the amount of free funds, allows you to actively raise salaries for staff, invest in research and development. However, in the long run, the model is very risky: lenders can demand immediate repayment of borrowed funds, as well as suddenly increase the interest rate.
- Equilibrium strategy. Fixed assets of the company (production facilities, technologies) and fixed costs production is covered by long-term loans with a low interest rate. Working capital is financed from the free finance of the company, as well as from short-term loans. This model is universal, protects owners from sudden payments on expensive loans, and allows increasing the amount of free funds on the company's accounts.
- traditional strategy. All expenses of the company are covered by long-term loans issued to owners at low interest rates. This model is suitable for young companies entering the market with little capital and no established customer base. Traditional financing frees up the company's own funds to expand the business, but the amount of capital must be sufficient to cover the loans.
Factors influencing the choice of financing strategy
Enterprise development model and distribution features financial resources depends on the specifics of the enterprise and market niche.- Duration operating cycle and sustainability of financial flows. Manufacturing companies that consistently sell large volumes of finished products can actively use expensive short-term loans. Costs are covered by profits, own funds remain free.
- Structure and profitability of the company's assets. A company from the service sector may own profitable assets (commercial real estate, funds in bank accounts, intellectual property). Manufacturing plants own fixed assets (machines, workshops, technologies, raw materials and materials), which are more difficult to sell in financial resources.
- The magnitude of the tax burden and the level of risks in the industry. Depending on the market niche and production characteristics, the company pays additional taxes (for example, petrochemical production) or receives benefits (for example, builders of infrastructure and social facilities). Innovative companies traditionally operate with a higher level of risk than manufacturing and trading companies.
- The position of the company in the market and the dynamics of demand in the industry. Manufacturers unique products, which is in stable demand, is actively attracting borrowed funds With minimal risks for business.
Financial strategy - this is general plan actions to ensure the enterprise in cash. It covers the issues of theory and practice of the formation of finance, their planning and provision, solves problems that ensure the financial stability of an enterprise in a market economy. Theory financial strategy explores the objective patterns of market conditions of management, develops ways and forms of survival in new conditions, preparation and conduct of strategic financial transactions.
The financial strategy of the enterprise, covering all aspects of the enterprise, includes the optimization of fixed and working capital, capital management, profit distribution, cashless payments, tax management, securities policy. The listed components of the financial strategy determine the objects of the financial strategy. The objects of development and implementation of the financial strategy of the enterprise are income and receipts of funds, expenses and deductions of funds, relationships with the budget and extra-budgetary funds, credit relationships (Fig. 11.7).
Rice. 11.7.
Comprehensively considering the financial capabilities of the enterprise, objectively considering the nature of internal and external factors, the financial strategy ensures the compliance of the financial and economic capabilities of the enterprise with the conditions prevailing in the product market. Without taking these factors into account in the financial strategy, the enterprise may go bankrupt.
Enterprises can develop a general financial strategy, an operational financial strategy and a strategy for achieving individual strategic objectives, or a strategy for achieving private strategic goals. The most holistic both in terms of the planning horizon (the period of time covered by planning), and in terms of the scale of the goals set in it, is general financial strategy enterprises. The general financial strategy consists of several operational financial strategies, but is not a simple sum of them. The general financial strategy determines the activities of the enterprise for a sufficiently long, but also quite predictable period of time, for example, for a year. It includes relationships with the budgets of all levels, the formation and use of the enterprise's income, the need for financial resources and the sources of their formation.
Operational financial strategy the enterprise specifies the general financial strategy for a shorter period of time and implements a certain part of the goals set in the general strategy. An operational financial strategy is developed for a quarter, a month and determines the strategy for the current maneuvering of financial resources. The operational financial strategy of the enterprise is aimed at controlling the spending of funds and mobilizing internal reserves, which is especially important in modern conditions economic instability.
The operational financial strategy covers gross revenues and receipts (payments to customers for products sold, receipts from credit transactions, income from securities) and gross expenditures (payments to suppliers, wage, repayment of obligations to budgets of all levels and banks), which creates the opportunity to provide for all upcoming turnovers in the planning period in terms of cash receipts and expenditures, ensures the equality of expenditures and incomes or a slight excess of income over expenditures. The operational financial strategy is developed within the framework of the general financial strategy, detailing it for a specific period of time.
Strategy for the implementation of individual strategic tasks or the strategy for achieving private strategic goals has no restrictions on the period of time covered by planning, but is limited to solving one strategic task or private strategic goal. The strategy for achieving private goals is the skillful execution of financial transactions aimed at ensuring the implementation of the main strategic goal. It is "superimposed" on the general or operational financial strategy, without contradicting the goals set in them.
The main strategic goal of the financial strategy is to provide the enterprise with the necessary and sufficient financial resources.
The financial strategy of the enterprise in accordance with the main strategic goal provides:
- o formation of financial resources and centralized strategic management of them;
- o identifying decisive areas and focusing on their implementation of efforts, flexibility in the use of reserves by the financial management of the enterprise;
- o ranking and phased achievement of objectives;
- o compliance of financial actions with the economic condition and material capabilities of the enterprise;
- o an objective account of the financial and economic situation and the real financial position enterprises in a year, quarter, month;
- o creation and preparation of strategic reserves;
- o taking into account the economic and financial capabilities of the enterprise itself and its competitors;
- o identifying the main threat from competitors, mobilizing forces to eliminate it and skillfully choosing directions for financial actions;
- o maneuvering and fighting for the initiative to achieve a decisive advantage over competitors.
The main strategic goal in accordance with the requirements of the market and the capabilities of the enterprise is carried out through the development and implementation of the financial strategy of the enterprise, where the tasks of forming finance are determined and distributed by performers and areas of work.
Tasks of the financial strategy:
- o study of the nature and patterns of formation of the finances of the enterprise, including in market conditions of management;
- o development of conditions for the preparation of possible options for the formation of financial resources of the enterprise and the actions of the financial management in the event of an unstable or crisis financial condition of the enterprise;
- o determination of financial relationships with suppliers and buyers, budgets of all levels, banks and other financial institutions;
- o identification of reserves and mobilization of enterprise resources for the most rational use of production capacities, fixed assets and working capital;
- o providing the enterprise with the financial resources necessary for the production economic activity;
- o ensuring the effective investment of temporarily free funds of the enterprise in order to obtain maximum profit;
- o identifying ways to implement a successful financial strategy and strategic use financial opportunities, new types of products and comprehensive training of personnel of the enterprise for work, including in market conditions of management, their organizational structure and technical equipment;
- o study of the financial strategic views of potential competitors, their economic and financial capabilities, development and implementation of measures to ensure financial stability;
- o development of ways to prepare a way out of a crisis situation, methods of managing the personnel of an enterprise in an unstable or crisis financial condition and coordinating the efforts of the entire team to overcome it.
When developing a financial strategy, special attention is paid to the completeness of identifying cash income, mobilization of internal resources, maximum reduction of production costs, proper distribution and use of profits, determination of the need for working capital, rational use of enterprise capital. The financial strategy is developed taking into account the risk of non-payments, inflation surges and other force majeure (unforeseen) circumstances. She must match production tasks and, if necessary, correct and change. Control over the execution of the financial strategy ensures the verification of revenues, their economical and rational use. well established financial control helps to identify internal reserves, increase the profitability of the economy, increasing cash savings.
An important part of the financial strategy is the development of internal standards, which determine, for example, the direction of profit distribution, limits on the values of liquidity ratios, the limiting ratios of equity and borrowed capital, accounts payable and receivables, which are successfully used in the practice of Russian and foreign companies.
The success of an enterprise's financial strategy is guaranteed by balancing the theory and practice of financial strategy; when the financial strategic goals correspond to real economic and financial opportunities through the rigid centralization of financial strategic management and the flexibility of its methods as the financial and economic situation changes.
Proposals for the formation of the financial strategy of the enterprise are developed on the basis of the conclusions obtained from the results financial analysis enterprises. Proposals are formed according to the objects and components of the general financial strategy in several versions with a mandatory quantitative assessment of proposals and an assessment of the impact of the proposal on the balance sheet items of the enterprise and the income statement. For each option for the formation of a financial strategy, a forecast balance sheet and a profit and loss statement are built, taking into account the qualitative and quantitative assessments of proposals included in the financial strategy.
Depending on the external conditions, the implementation of one or another variant of the general financial strategy, an operational financial strategy is developed quarterly (perhaps monthly), taking into account the financial indicators achieved in the previous quarter or month. If it is necessary for the enterprise to solve an urgent specific financial task, a strategy for achieving private goals is developed for a year, quarter or month.
In the financial strategy, the planning of the main characteristics of the financial condition of the enterprise - solvency, creditworthiness, the degree of probability of bankruptcy, as well as financial reporting indicators that determine the main characteristics of the financial condition of the enterprise, property, capital, resulting performance indicators - financial results. To obtain maximum effectiveness in the development of a financial strategy, a certain sequence of actions must be followed.
Sequence of development of financial strategy.
The development of the financial strategy of the enterprise (Fig. 11.8) begins with the preparatory period. During this period, financial analysis of the enterprise's activities, forecasting of the external economic environment, drawing up a promising program for the development of the enterprise, taking into account the expected income and expenditure, are carried out. financial resources. Based on the assessment based on the results of a financial analysis of the enterprise's activities for the previous planned period, the current situation in the enterprise financial situation, expected changes in the external financial and economic environment, prospects for the development of the enterprise, expected from a high degree the probability of receipts and expenditures of financial resources, the goal of financial planning is formulated - the strategic goal of the financial strategy of the enterprise, the main criterion for improving the financial condition of the enterprise for the planned period is selected, proposals are developed in several versions for the formation of the financial strategy of the enterprise, high-quality and quantification proposals, the selection of proposals that meet the achievement of the main criterion for improving the financial condition of the enterprise is carried out.
Example. We will analyze the possibilities for improving the solvency of a conditional enterprise (according to the initial data of Table 11.6 and the analysis performed by graphical, tabular and coefficient methods, summarized in a synthetic assessment). According to the results of the analysis, it was found that the enterprise at the end of the period under review is in the degree of "insolvency".
Rice. 11.8.
Based on the results of the analysis of the solvency of the enterprise, we will begin planning measures to optimize its solvency. To implement the planning process, we will establish factor indicators that affect the resulting indicator, and identify the nature of the influence of factor indicators on solvency.
The factor indicators that determine the solvency of an enterprise are "Inventories" and "Value Added Tax on Acquired Values" with a breakdown into the unsold part of the reserves and VAT and the sellable part of the reserves and VAT (Zne ^ £, d), "Capital and reserves" (P3 ), "Long-term liabilities" (P4), "Loans and credits" (ZiK) - an article in sec. 5 "Current liabilities" of the balance sheet liabilities, "Non-current assets" (A,).
With a direct relationship, digging the value of the factor indicator improves the solvency of the enterprise, with an inverse relationship, the growth of the factor indicator worsens the solvency. Thus, the degree of solvency is directly dependent on the following factor indicators: "Capital and reserves", "Long-term liabilities", "Loans and credits" and inversely dependent on the indicators: "Non-current assets", "Inventories", "Value added tax by acquired values", non-sold part of "Reserves and VAT".
The task of financial planning is to balance factor indicators, taking into account the interests of production.
The purpose of the proposals for the formation of the financial strategy of a conditional enterprise is to increase the solvency of the enterprise. Proposals to improve the solvency of a conditional enterprise have been formed for the objects and components of the financial strategy with optimization options and an indication of the impact on balance sheet indicators (Table 11.10). The multivariance of the financial strategy is due to the unpredictability of the development of the real economic environment in the planned period and the desire of the enterprise to be ready for any probabilistic development of events. The "optimistic" variant assumes the most favorable behavior of the external economic environment for the enterprise, the "unchanged" variant - the external economic situation remains unchanged, the same as in the previous planning period, the "pessimistic" variant - unfavorable developments in the market for the enterprise. In page 5 of the table. 11.10 shows only TS indicators that act as factor indicators of the solvency of the enterprise. To assess the achievability of the main criterion for improvement, we denote the direction of change in the indicator - an increase ("+" sign), a decrease ("-" sign).
Table 11.10. Proposals for the formation of a financial strategy for a conditional enterprise to increase solvency
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Offers |
Impact on balance sheet indicators |
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Offer name |
quantitative assessment by options, thousand rubles |
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pessimistic |
unaltered |
optimistic |
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1. Reducing costs in work in progress (by reducing the production cycle) |
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2. Reduced production costs |
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3. Issuing shares for your employees |
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4. Acquisition of "know-how" to shorten the production cycle |
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5. Obtaining a short-term loan to replenish working capital |
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6. Obtaining a long-term loan from a foreign bank (when creating a joint venture) |
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According to the options of the financial strategy of Table. 11.10 we will calculate indicators of solvency of the enterprise. The results of the calculation of solvency indicators for the options of the financial strategy are given in Table. 11.11. To calculate solvency indicators, line-by-line values of the indicators in Table. 11.7 at the end of the period.
Table 11.11. Calculation results of variants of the financial strategy of a conditional enterprise to improve solvency
A quantitative assessment of the solvency of an enterprise when implementing a proposal to a financial strategy for all options indicates the possibility of withdrawing an enterprise from a financial crisis and insolvency. But at the same time, it must be taken into account that the implementation of financial strategy options depends on external conditions, in particular, on whether the enterprise will be able to sell its shares, receive a short-term or long-term loan. Under unfavorable external conditions, the implementation of proposals for the formation of a financial strategy according to the pessimistic option provides the company's reserves, using all normal sources of reserves formation, and an acceptable low solvency; according to the unchanged and optimistic options, the reserves are provided by own and long-term borrowed sources - the enterprise goes into a normally stable financial condition and will have a normal solvency. The goal of financial planning has been achieved - measures have been planned to increase the degree of solvency of the enterprise with pessimistic, optimistic and unchanged behavior external environment.
Financial strategy- one of the main tools for managing the work of the enterprise. The financial strategy assumes that the enterprise needs to develop strategic, tactical and operational plans, since the system of market relations is inextricably linked with financial performance.
The financial strategy is an integral part of the enterprise development strategy, which means that it is consistent with its goals and objectives. The development of the financial strategy of the enterprise is predetermined by certain conditions. The main condition of the financial strategy is the speed of transformation of the macro-factors of the economic environment. There are also conditions that do not allow you to optimally manage the finances of an enterprise: the main macroeconomic indicators, the rate of technological growth, constant changes in the state of the financial and commodity markets, the imperfection and instability of the economic policy of the state and methods of regulating financial activities. The financial strategy is developed on the basis of all factors of the macro-environment of the economy in order to exclude a decrease in the profitability of the enterprise.
What are the types of financial strategies of an enterprise
The general financial strategy is a strategy that establishes the direction of the enterprise, its relationship with the budgets of various levels, the emergence and distribution of enterprise income, the need for financial resources, sources of formation of these resources, and much more.
An operational financial strategy is a strategy that involves the management of financial resources and their distribution in the near future, control over the use of enterprise funds, and the search for internal reserves. An operational financial strategy is developed for a quarter or a month. It forecasts gross income and receipts (mutual settlements with buyers, payments on credit transactions, cash receipts, profitable transactions with securities) and gross expenses (settlements with suppliers, remuneration of employees, settlements on obligations to banks and budgets). The operational financial strategy provides for all income and expenses of the enterprise for the planned period. The optimal ratio of revenue and expenditure suggests that they should be equal, or the revenue side is slightly larger than the expenditure. The operational financial strategy is part of the general financial strategy, which characterizes the general financial strategy in a certain time period in more detail.
The financial strategy for achieving private goals involves the definition of a strategy to ensure the achievement of the main strategic goal.
Goals and objectives of the financial strategy of the enterprise
Providing the enterprise with sufficient financial resources in sufficient quantity is the main goal of the financial strategy of the enterprise. Based on the goal, the financial strategy of the enterprise makes it possible to:
- identify financial resources and establish their strategic management; identify the main areas of work and concentrate on their implementation, optimize the use of enterprise reserves; rank and gradually achieve the set goals; establish compliance with the financial strategy economic situation and the financial potential of the enterprise; carry out an effective analysis of the economic situation and the existing financial condition of the enterprise in a specific period of time; create and prepare the reserves of the enterprise; determine the economic and financial capabilities of the enterprise and its counterparties; identify the main competitors, plan measures to weaken the competing party in the market: initiative financial activities to gain an advantage in the market.
In order to achieve the main goal of the financial strategy, the enterprise develops a general financial strategy, which defines the tasks of generating financial resources in areas of activity and performers.
Objectives of financial strategy
study of the state and conditions of formation of financial resources in the economic conditions of activity; planning and selection of possible variations in the formation of financial resources of an enterprise and areas of activity of financial management as a result of unfavorable and not efficient operation enterprises; establishing financial relationships with suppliers and customers, budgets of various levels, banks and other financial counterparties; establishing reserves and attracting enterprise resources that will increase production capacity, use it efficiently, increase fixed and working capital, effective capital productivity; mobilize financial resources for ensuring production and economic work; ensuring positive effect from the use of the company's funds released from the turnover for the purpose of maximum benefit; analysis of the financial activities of competitors, their economic and financial potential, development and application of measures to establish the financial stability of the enterprise; preparation of measures to overcome adverse situations and the crisis of the enterprise; determination of the methods of enterprise management in situations of unsatisfactory financial condition; the use of all the possibilities of the employees of the enterprise to overcome the consequences of the crisis.Elena Buklova,
General Director City Courier Service, Moscow
For Urban courier service financial strategy is a clear understanding by the shareholders of the company of the development plan, recorded in the form of a document. The plan contains the following sections:
But such a document did not appear immediately. Formalization took place six years after the creation of the company, when it was restructured. At the dawn of business development, no one even thought about strategies and marketing plans. We all learned along the way. But to be successful tomorrow, you need to plan your activities today! That is why a strategy is needed, that is, a set of measures that covers the current work of the company and ensures its future development.
What are the principles of the financial strategy of the enterprise
When developing a financial strategy, the risks of non-payment, inflationary processes and other circumstances beyond the control of the enterprise are taken into account. It can be concluded that the financial strategy is developed in order to ensure the effective operation of the enterprise with adjustments in case of any changes.
Principles of the financial strategy of the enterprise
Current and long-term financial planning, which allows you to set planned indicators for cash receipts and directions for their use; centralization of financial resources, establishing their flexibility, focusing on the main areas of production and economic activity; creating financial sources that will allow you to maintain a stable financial position in the market; complete closure of financial obligations to counterparties; implementation of accounting, financial policies, as well as the depreciation policy of the enterprise; creation and maintenance of accounting of the enterprise's finances and certain types activities in accordance with established standards; preparation of financial statements of the enterprise and certain types of activities in accordance with applicable rules and regulations in compliance with the requirements of standards; financial analysis of the activities of the enterprise and certain types of activities (economic and geographical areas of activity and others); financial control over the work of the enterprise and individual activities.
What tools and methods to use in developing the financial strategy of an enterprise
Financial strategy tools
Methods of financial strategy
The use of certain methods and tools of financial strategy depends on the financial situation of the enterprise, as well as the socio-economic and political situation in the country.
Development of the financial strategy of the enterprise: stages of the process
Stage 1. Analysis of the financial condition of the enterprise. Financial condition is the availability of financial sources and reserves that allow the enterprise to carry out activities at its own expense. The enterprise has a sufficient amount of financial resources, effectively uses them in its activities, ensures normal relationships with partners, has a satisfactory balance of payments and is financially stable.
An analysis of the financial condition of an enterprise involves an analysis of the balance sheet and income statement, which are analyzed over past periods in order to determine trends in its activities and key financial indicators.
Analysis of the financial condition of the enterprise has the following stages:
Stage 2. Determination of the period for which the financial strategy of the enterprise is formed. The goals and objectives of the financial strategy, as well as the calculation of financial indicators, depend on the period for which the financial strategy is established. The long-term finance strategy determines gross income and expenses, sources of income generation, and their needs. The short-term financial strategy is part of the long-term one, which plans financial performance in more detail and determines the current financial planning of resources for the near future. Long-term and medium-term financial plans are developed for 3-5 years. They form general financial indicators, and short-term financial plans are developed in detail for one year.
Stage 3. Definition of the purposes of financial activity of the enterprise. The financial strategy is part of the functional strategy of the enterprise, so it is included in the structure of its overall goals. The main financial goal of the company is to increase the market value, taking into account the maximum reduction of risks. This goal can be represented in relative and in absolute terms. This goal is achieved if the company has required amount resources, profitable and balanced own capital, borrowed capital meets the standards.
The subgoals of finance are also planned:
Each goal is modified into a specific numerical and percentage indicator:
Stage 4. Develop an action plan to achieve these goals. The management of the enterprise controls the current position of the enterprise and corrects it in accordance with the objectives of the financial strategy. In order to control the implementation of the main strategic goals, these goals are broken down into strategic tasks that must be implemented in a specific period of time. Also, financial goals should be grouped in areas that make up the unified financial policy of the enterprise.
Stage 5. Development of financial policy on certain aspects of financial activity. The difference between the financial policy of the enterprise and the financial strategy lies in the fact that the financial policy determines the aggregated indicators and directions of the enterprise. The financial policy regulates the optimal management of the enterprise and ensures the achievement of its strategic goals.
Stage 6. The development of a system of organizational and economic measures to ensure the implementation of the financial strategy involves the creation of various types of “responsibility centers” at the enterprise; establishing the rights, duties and responsibilities of management for the results of financial activities; development of incentives for employees for effective work and increase in income of the enterprise, etc.
Stage 7. Evaluation of the effectiveness of the developed financial strategy is carried out after all stages of the financial strategy of the enterprise.
3 Important Points for Developing a Strategy
Alena Fomina,
Head of "Strategic Management" BDO Unicon Company, Moscow
The first thing to do when developing a strategy is to define goals and objectives. Why does a company need a strategy? Who is on the development team? What does each participant in the process expect from the strategy?
The second is to identify technologies, that is, to clearly understand what methods should be used at each stage of strategy development: choose diagnostic methods, create an algorithm for constructing scenario models, a format for conducting strategic sessions, etc.
Next - to form a working group, determine the centers of responsibility and control centers for the development and implementation of the strategy, as well as establish how (in what format) the management will receive and evaluate the results of the project for its development.
Development of a financial strategy by example
We can consider the formation of a financial strategy as an example, in which it is necessary to establish the direction of tactical money management. In this case, the manager will indirectly influence the indicators of expenses and income, but will strengthen control over the movement of funds and manage the use of additional credit sources, etc. It is necessary to determine: can the financial manager influence the cost part of the balance sheet of the enterprise, and how? You can calculate limits on materials, labor rates, electricity consumption, and more. Of course, the financial manager will not check the work of an employee who, for example, cuts a sheet or spends resin, will not take readings from electricity meters, and much more. But a financial manager can rationally distribute the use of financial resources, encourage employees to reduce costs by creating motivation methods. You can also determine the main directions for the use of financial resources and focus on their efficient use. Therefore, one way or another, the management of the capital of the enterprise affects the indicators of income and expenses.
You can ask the question: how to manage capital without taking into account indicators of income and expenses? In this case, the main goal of the financial manager will be to achieve such a level of return on investment, shareholder capital, working capital which will allow you to get the maximum profit. To achieve this goal, the financial manager needs to develop a financial strategic plan within the overall strategy of the enterprise. It is possible to consider, using the example of the industrial holding Concern High-Voltage Union, the development of a financial strategy, the directions of which are very similar to any kind economic activity enterprises.
The main directions of the financial strategy. First you need to select and install critical factors capital management - attracting resources and directions for their use. It is necessary to analyze those areas of activity of the enterprise, which the financial manager can influence by the performance of his direct duties. Further, the main factors are detailed into smaller ones in accordance with the directions of their use (example in the table). Then small directions are even more signed for exact parameters. The example shows detailed description financial strategy.
Creation of a strategic matrix. First you need to establish a goal, the basic principles for realizing this goal. Then the financial strategy is presented in the form of a matrix, where the decomposition elements are indicated vertically, and the principles and ideology, the state at the date, smaller goals, the main directions of management, management tools and methods, management methods and structural divisions, i.e. in matrix form, it is possible to describe all areas of work of a financial manager in developing a financial strategy.
So, to implement the strategy of managing the structure of working capital, one can define the following strategic goal: to achieve an effective investment of capital in current assets in order to establish the optimal financial position of the enterprise.
The most important word is “optimal”, since the main mistake of entrepreneurial activity is freezing the financial resources of the enterprise in stocks. In such situations, large-scale or small enterprises do not change the cost structure when changing the nomenclature. This means that it is necessary to set a limit on the remaining products in stocks and exercise control over their level. To do this, a financial strategy is developed taking into account the timing of release, the technological volume of the batch, the terms of contracts, the terms of payment, customs clearance and filling out declarations, efficient loading of vehicles and more.
"Concern High-Voltage Union" carries out its production activities under the order. In this case, a different approach is required. The concern produces a wide range of high-voltage and switching equipment. The main types of products are vacuum circuit breakers, integrated switchgears (KRU), transformer substations, generator circuit breakers and other equipment. Vacuum and generator circuit breakers are single products, while switchgear and substations are designed according to custom order and are designed by engineers for each order separately. Therefore, for the concern, the development of the goal of the financial strategy involves the definition of financial indicators that can bring the financial activity of the enterprise closer to the optimal level of reserves.
The main principles of the concern in this case are: the greatest increase in the rate of return, the maximum reduction in liquidity and commercial risks.
The object of management is working capital, which includes indicators such as finished products, cash, raw materials, receivables and payables. These indicators are considered in correlation with the sources.
Then the financial strategy can be represented as a matrix with decomposition indicators indicated vertically:
Management strategy for working capital and its financing reserves; strategy for managing the structure of industrial working capital; strategy for managing the ratio of non-working capital to working capital.
With the help of these indicators, you can set both low-hierarchy sections of movement and digitized criteria. For example, the main target indicator is the ratio of the ratio of non-working capital to working capital.
The following indicators are indicated horizontally in the matrix:
At the intersection of the rows and columns of the matrix:
Under the column “Basic principles and ideology of the strategy” - a description of the idea of leadership for a specific goal and evaluation criteria; under the column “Status as of the date” there are links to documents containing an information field for a reference point. For example, by clicking on the link at the intersection of the line “Strategy for managing the structure of industrial working capital” and the column “State at the date”, you can open a document that shows the state of the enterprise at the starting point and its development trends, trends and targets for a separate parameter of the working capital structure; the column “Basic criteria for management, tools, methods” indicates the enterprise standards, which consider the basic concepts, regulations, which characterize business processes, calculation methods, etc.; the column “Management method - the process is involved” - the name of the business process in accordance with the documents of the quality management system and methods of managing it; in the column “structural units involved” - departments of the financial and economic service, whose responsibility involves managing business processes.
It can be concluded that in the form of a matrix, all directions of the financial strategy are described. Due to the fact that it is impossible to give an example of the matrix itself, we will characterize some areas of the financial strategy.
Strategy for attracting financial resources. The main purpose of attracting resources is to ensure the creditworthiness and investment attractiveness of the enterprise.
The main criterion for fulfilling this goal is the optimal ratio of debt to equity capital.
Objects of management: borrowed capital (acquired advances, invoices for payment, obligations received for operational work, taxes on payment, credit obligations, accounts payable of enterprises).
The main tools and methodology are established by the company's standards (Economic and financial management, Regulation on cash flow, Credit policy, etc.).
Method of leadership: centralized influence on the size and composition of current revolving funds, coordination through the redistribution of financial sources, setting the allowable size of credit obligations.
Officials and various divisions: general and financial directors of the holding, head of the production department, financial and economic department, treasury.
Cash and cash equivalents management strategy. The main goal of cash management is the effective distribution of these funds for the timely fulfillment of the terms of the contract, ensuring investment and innovation activities. Main criteria: balance of liquidity and financial independence indicators.
Management objects: cash and non-cash funds and their varieties (securities, etc.).
The main principles and ideology of management: budgeting - construction of BDDS in accordance with the BDR, plan-fact analysis in the context of the day, month, quarter.
Main tools and methods: established by the company's standards and associated with the attraction of financial resources.
Method of management: centralized influence through regulation of payments, determination of preferential directions for spending financial resources and their use, direct management of urgent payments and payments over the limit.
Officials and various departments: financial and economic department, budget department, treasury, financial director of the holding.
In the same way, all directions of the financial strategy are signed. But this is not a strict list, you can change something, add, delete, everything is individual. It is necessary to implement the financial strategy from a non-standard point of view and determine the main directions and goals.
Evaluation of the developed financial strategy
It is necessary to conduct an analysis in order to determine whether the developed financial strategy can lead to the financial performance of the enterprise and to the established goals of the financial strategy in a constantly changing external financial environment. This analytical process is carried out financial managers or experts invited for this purpose. The evaluation of the financial strategy involves the establishment of the following parameters:
After the effectiveness of the financial strategy of the enterprise has been evaluated and it has been established that it will have positive results and correspond to the financial philosophy of the enterprise, it can be implemented.
Stages of financial strategy implementation
1. Security strategic changes financial activity of the enterprise. Strategic changes - a process aimed at changing all types of activities of the enterprise to a level that will ensure the full implementation of the developed financial strategy of the enterprise.
The coverage of strategic changes in the financial activity of an enterprise is influenced by the existing level of management of this activity, as well as financial relationships with counterparties, the nature of the sources, the level of the information base, the degree of innovativeness of financial operations, the financial instruments used, the level of organizational culture of financial workers and other intra-organizational parameters. In accordance with the above, it is possible to characterize the strategic changes in the financial activities of the enterprise as follows:
To implement strategic changes in the financial activities of an enterprise, it is necessary to transform the following financial management systems: information system, organizational culture, organizational structure management, personnel system, employee incentive system, innovation system.
2. Diagnostics of the nature of changes in the conditions of the external financial environment at each stage of the implementation of the financial strategy of the enterprise. Constant analysis of the external financial environment will allow the company to take timely effective solutions and implement a set of measures that will contribute to the financial stability of the enterprise and its economic development. Theory strategic management establishes 4 main options for changing the external financial environment in which the financial strategy of the enterprise is implemented:
Relative constancy of the conditions of the external financial environment; predictable changes in the conditions of the external financial environment; unpredictable changes in the conditions of the external financial environment, which are determined at the initial stage of their occurrence; unpredictable unexpected changes in the conditions of the external financial environment.
In order to determine changes in the conditions of the external financial environment, monitoring of the financial market is used, which shows the impact of various factors that significantly affect the financial condition of the enterprise and its development, as well as changes in interest on loans, the exchange rate, the rate of return on investments, the level of insurance tariffs and much more.
Implementation of a financial strategy and implementation - what's the difference
Efim Pykov,
Managing Partner Consulting company Formula Development, Moscow
The financial strategy of an enterprise, like any other business tool, is effective only when it is used in work. Any, even the most remarkable and verified strategy, if it gathers dust in a drawer or hangs in a gilded frame, costs absolutely nothing (except for the cost of the frame). The strategy must work. Every day and every hour. But it needs to be clarified: there is often some confusion between understanding strategy implementation and strategy implementation. These concepts must be clearly separated.
The implementation of the strategy is the achievement of the goals that are laid down in the strategy. It is possible to assess the degree of implementation of the strategy over time by comparing the quantitative parameters of the goals recorded in the strategy and the parameters that the company achieves.
Strategy implementation is the process of implementing the strategic operations plan. Evaluation of performance occurs upon the implementation of all the points of the plan with due quality.
Without implementing a strategy in daily work company, the implementation of the strategy, that is, the achievement of the set goals, is hardly possible.
Analysis of financial strategy
A measure of the effectiveness of a financial strategy can be applied “ Golden Rule economy”:
Tp > Tv > Ta > 100, where
If, as a result of the development of financial policy in the main areas of the financial strategy of the enterprise, this ratio does not correspond to that recommended in this model, the strategy or part of it must be changed so that it fulfills the main goal - ensuring maximum efficiency of the enterprise.
Department: "Finance and Credit"
ESSAY
discipline: "Short-term financial policy"
on the topic: "Formation of the financial strategy of the enterprise"
Togliatti 2010
Introduction
The financial strategy of an enterprise is a system of long-term goals of the financial activity of an enterprise, determined by its financial ideology, and the most effective ways to achieve them.
The relevance of the research topic is due to the fact that the efficiency of economic entities is largely determined by their financial strategy. Organizations that pay close attention to financial strategy issues are more competitive and resilient. The issues of forming a financial strategy are relevant for both large and small organizations, both for state enterprises, public organizations and for commercial structures.
Developing a financial strategy is the circle of financial planning. As a component portion of the overall strategy of economic development, it must be consistent with the goals and directions of the latter.
The problem of choosing a financial strategy for the activity of an enterprise is relevant due to the need to make decisions in market conditions. Here the main attention is paid to the assessment of the current state of the subject of economic activity. Priority in this direction studies are a reasonable forecast of the directions of development of the enterprise, the development of specific recommendations to prevent possible errors and miscalculations and stating the actual state of affairs. First of all, it is necessary to define the financial strategy of the activity as a recommendation of a relative change in the financial and economic condition in the long term based on quantitative characteristics the actual financial and economic condition in the current and subsequent periods.
A financial strategy is a master plan of action to provide an enterprise with cash. It covers the issues of theory and practice of the formation of finance, their planning and provision, solves problems that ensure the financial stability of an enterprise in a market economy. The theory of financial strategy explores the objective patterns of market economic conditions, develops methods and forms of survival in the new conditions of preparation and conduct of strategic financial transactions.
The relevance of the development of the financial strategy of the enterprise is determined by a number of conditions. The most important of these conditions is the intensity of changes in the factors of the external financial environment. The high dynamics of the main macroeconomic indicators related to the financial activities of enterprises, the pace of technological progress, frequent fluctuations in the financial market, the volatility of state economic policy and forms of regulation of financial activities do not allow to effectively manage the finances of an enterprise based only on previously accumulated experience and traditional methods financial management.
Under these conditions, the lack of a developed financial strategy adapted to possible changes in environmental factors can lead to financial solutions individual structural divisions enterprises will be multidirectional, lead to contradictions and reduce the efficiency of financial activities in general.
1 The place of financial strategy in the overall strategy of the enterprise
The development of an enterprise development strategy ensures the effective distribution and use of all resources: material, financial, labor, land and technology, and on this basis - a stable position of the enterprise in the market in a competitive environment.
As part of the overall strategy for the economic development of an enterprise, the financial strategy is subordinate to it and must be consistent with its goals and directions. At the same time, the financial strategy itself has a significant impact on the formation of the overall strategy for the economic development of the enterprise.
This is due to the fact that the main goal of the overall strategy - to ensure high rates of economic development and increase the competitive position of the enterprise is associated with the development trends of the corresponding commodity market(consumer or production factors). If the development trends of commodity and financial markets do not coincide, a situation may arise when the goals of the overall development strategy of the enterprise cannot be implemented due to financial constraints. In this case, the financial strategy makes certain adjustments to the overall development strategy of the enterprise. (Table 1)
Table 1
Financial and strategic goals of the organization
| Financial Goals | Strategic Goals |
| Income growth | Increase market share |
| Growth of dividends | Improving the quality of goods |
| Increasing return on investment | Lower costs compared to competitors |
| Expanding the range of products and increasing their attractiveness |
|
| Growth of cash flows | Building reputation with consumers |
| Increase in share prices | Increasing the level (quality) of service |
| Improving and optimizing the structure of income sources | Expanding the application of innovation |
| | Strengthening competitive positions at the international level |
The financial strategy covers both theory and practice, the formation of finance, their planning and provision. The financial strategy of the enterprise solves the problems that ensure the financial stability of the enterprise in the market economy.
A distinction is made between a general financial strategy, an operational financial strategy, and a strategy for fulfilling individual strategic tasks, in other words, achieving private strategic goals.
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Financial strategy is the most important tool in the field of management entrepreneurial activity to achieve the set goals. It becomes especially relevant in the conditions of an unstable macroeconomic situation and volatile market conditions. financial services.
The strategy and tactics of financial management can be general and operational. Based on this, the general strategy can be formed no earlier than 3-5 years. During this time, the relationship with the budget is established, the formation of the enterprise is determined, as well as the ways of formation. The operational strategy is created within one year and includes detailed information on income and expenses that relate to a specific current period of the enterprise's activity.
Strategy - a non-detailed, general plan that relates to a specific type of activity.
Such a complex concept as financial betting, strategies and other basic concepts of effective management will help create a coherent structure for managing an enterprise and reduce costs to a minimum, while increasing Based on the existing system, it is formed in the most basic areas for a particular enterprise.
An effective financial strategy can provide the following:
- Formation and preparation of strategic reserves.
- Full compliance of the material capabilities of the company with the operations that are planned.
- Finding the most effective way to concentrate available financial resources and directions for investment.
In the course of work on the creation of a strategy, more attention should be paid to the formation of a competitive policy for the production and sale of products, effective and profit, as well as the mobilization of created internal reserves.
It is worth noting that earlier the term "strategy" was used only in military subjects, but recently it has also been used in business. Professor G. Kleiner claims that strategic decision- this is a decision that has a strong influence on the final result of a particular activity.
The financial strategy underlies the effective operation of the company, because it is a kind of framework on which basic tasks and solutions to specific issues are built.
Way two. Definition of strategy based on the synthesis of known action plans from separate interrelated decisions that relate to different areas of the company.
Way three. It can be surpassed as mixed, because it combines the principles of the two previous options in different proportions.
It should be noted that the advantage of the first approach is the priority position of the financial strategy as a link between the goals, mission and objectives. The second approach has forte in that there is a closer connection between the strategy and the management policy of the enterprise.
The correct financial strategy of the enterprise will help to avoid many problems in the future activities of the enterprise, and maybe even bankruptcy, because the most important thing in doing business is to correctly calculate your strengths and be as confident as possible in achieving one or another result. Enough modern companies can help a novice businessman with drawing up a correct and thoughtful development path.
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