Strategic Financial Management PDF

Running head: STRATEGIC FINANCIAL MANAGEMENT
Strategic Financial Management
Name of the Student
Name of the University
Author’s Note

1STRATEGIC FINANCIAL MANAGEMENT
Table of Contents
Introduction......................................................................................................................................2
1. Analysis of the Annual Report of Tesco......................................................................................2
a. Stakeholder Analysis...............................................................................................................2
Stakeholder..............................................................................................................................2
Three Types of Stakeholders in Tesco.....................................................................................3
b. Environmental and Social Performance of Tesco...................................................................4
2. Analysis and Evaluation of the Financial Position of Benedict Co.............................................6
a. Purpose and Relevance of Chosen Ratios................................................................................6
b. Results of Ratios and Reasons for the Movement between Two Years..................................8
c. Aspects of Concern in the Company’s Performance...............................................................9
d. Application of Financial Ratios to Interpret and Measure Company’s Performance............10
Conclusion.....................................................................................................................................11
References......................................................................................................................................13
Appendix........................................................................................................................................16

2STRATEGIC FINANCIAL MANAGEMENT
Introduction
Strategic financial management is considered as a specific planning process that shows
the usage of the financial resources of the companies by the management with the aim to achieve
the financial goals and objectives (McKinney 2015). Another major aim of this is the
maximization of the value of the shareholders in the long run. Under the process of strategic
financial management, the managements of the companies are needed to consider all the relevant
aspects (Finkler et al. 2016). This report aims to achieve two specific objectives. The aim of the
first part of the report is the analysis of the stakeholder along with environmental and
sustainability aspects of Tesco. For this reason, this part involves in the analysis of the 2016
Annual Report of the company. The next part of the report involves in the analysis as well as
evaluation of the financial position of Benedict Co. For this reason, the analysis of some of the
ratios is performed with the aim to analyze the financial position of the company.
1. Analysis of the Annual Report of Tesco
a. Stakeholder Analysis
Stakeholder
In the modern business organizations, Stakeholder is considered as a major aspect for the
managements of the companies. A stakeholder can be regarded as a person or group having an
interest in the business operations of the companies. It needs to be mentioned that the support of
the stakeholders is needed in order the business organizations to be successful. For this reason,
the actions, objectives as well as policies of the business organizations have impacts on the

3STRATEGIC FINANCIAL MANAGEMENT
interests of the stakeholders. The stakeholders can be internal or external to the business
organizations (Bourne 2016).
A stake can be regarded as a crucial interest in the activities of the businesses and it may
include property interest, ownership, legal interest, business obligations and moral rights. The
examples of some of the key stakeholders of the businesses are employees, suppliers, creditors,
directors, owners, government, union, communities and others (Mok, Shen and Yang 2015). In
this context, it needs to be mentioned that all the stakeholders are not equal in the companies. For
example, customers of the companies are entitles to fair trading, but they are not entitled to the
same consideration as the employees of the companies. For this reason, it is needed for the
managements of the companies to consider all these aspects in the process of stakeholder
management (Verbeke and Tung 2013).
Three Types of Stakeholders in Tesco
It can be observed from the 2016 Annual Report of Tesco that the company has provided
three stakeholders with most importance and they have considered them as the key stakeholders.
These three key stakeholders are Customers, Suppliers and Colleagues.
Customers: The 2016 Annual Report of Tesco states that the company has considered customers
as one of their key stakeholders. Customers are the people and organizations that buy the
products and services of the company. Tesco has made some major commitments for their
customers. The main aim of the company is to take simple steps to make big difference for them
(tescoplc.com 2018).