Financial Management : Sample Assignment

Added on - 21 Feb 2021

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Financial Management
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1Assessment......................................................................................................................................11. Explaining relationship in between the financial objectives, corporate strategy and thecorporate objectives.....................................................................................................................12. Discussion relating to the interaction of the economic policy of government with that of theplanning and the decision making in business.............................................................................2CONCLUSION................................................................................................................................3REFERENCES................................................................................................................................4
INTRODUCTIONFinancial management refers to the process of planning, directing, controlling, organizingthe finance related activities like acquisition and optimum use of an entity's funds. In other wordsit also means application of the general principles to the financial resources of an organization.Financial management deals with assessing money and the investment for an individual or thebusiness in order to make suitable business decisions. The present study focuses on analysing therelationship present between the financial and the corporate strategies. Furthermore, the reportpresents the interaction of the government policy to that with the planning within the business.Assessment1. Explaining relationship in between the financial objectives, corporate strategy and thecorporate objectivesFinancial objectives focuses on the financial growth of the firm which means that whenthe objectives of an enterprise are majorly concerned with achieving financial efficiency bykeeping control over the cost and this results in maximisation of profits (Alonso‐Martínez,González‐Álvarez and Nieto, 2019). The two main financial objectives that an entity aims forare wealth maximisation and profit maximisation. However, corporate objectives describesmission and values of the company like customer loyalty, increased market share and meetingsales target etc. On the other hand corporate strategy defined as the direction that an entity takesfor attaining growing success in the long run.Corporate strategies are stated as wider as compared to the financial as it looks towardsan entire business. Once a corporate strategies are developed adequately, then the corporate andthe financial objectives could be measured and setted appropriately. Effective corporatestrategies leads to improvement in the companies return on equity in long term and this in turncould translate into achievement of the higher profitability that result in enhancement of thefinancial performance (Martínez, Fernández and Fernández, 2016). This means corporatestrategy leads to achievement of the corporate and the financial objectives in an efficient andeffective manner.Implementation of the strategies helps in satisfying objectives of the individualdepartments and also in promoting the overall goals of the corporate.For example- wealth of thefirm could be maximised by increasing the value of their shares which in turn could be done bybuilding credibility, making investments in the real estate or the investable channels. Similarly,1
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