Strategic Financial Management

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. Annual Report Analysis...............................................................................................................2
a. Analysis of Stakeholders..........................................................................................................2
b. Analysis of Environmental and Social Performance...............................................................4
2. Financial Position of Benedict Co. Analysis and Evaluation......................................................6
a. Purpose and Relevance of Selected Ratios..............................................................................6
b. Ratio Analysis Results and Reasons for the Movement..........................................................7
c. Areas of Concern.....................................................................................................................9
d. Application of Financial Ratios in Interpreting and Measuring Company’s Performance...10
Conclusion.....................................................................................................................................11
References......................................................................................................................................12
Appendix........................................................................................................................................15

2STRATEGIC FINANCIAL MANAGEMENT
Introduction
Strategic financial management refers to process of strategic planning and this
demonstrates the utilization of financial resources when the management attempts to achieve
objectives and goals of the business (Morden 2016). Strategic financial management plays a
crucial role to maximize the value of the company’s stakeholders on the basis of long run. It puts
the obligation on the management of a company to undertake the necessary financial as well as
strategic aspects of the business (Theriou 2015). There are two major objectives of this report.
Analyzing as well as evaluating Tesco’s stakeholders and its sustainability and environmental
initiatives is the aim of the first part of the report. Analysis and evaluation of the financial
performance of Benedict Co. is the aim of the second part of this report. Financial analysis is
considered as a crucial part for analyzing the financial performance and position of the
companies; and therefore, certain ratios are chosen to analyze the financial performance of
Benedict Co. Based on the whole discussion, a conclusion is provided at the last part of the
report.
1. Annual Report Analysis
a. Analysis of Stakeholders
Stakeholder – Managements of the companies put major emphasis on the stakeholders for the
purpose of business success. A stakeholder refers to a person or group possessing certain interest
in a company’s business operations. Proper support of the stakeholders lead the businesses
towards success; and therefore, the interest of the stakeholders create major impact on the
policies, actions and objective of the companies (Miles 2017). The presence of both internal and

3STRATEGIC FINANCIAL MANAGEMENT
external stakeholders can be seen in a business. The term called ‘stake’ in stakeholder holds a
major significance in stakeholder management; and stake refers to an important interest of a
stakeholder in a company’s operations; and this interest of the stakeholders can be in the
company’s ownership, properties, business oblations, legal matters, moral rights and others. A
business has different stakeholders such as management, employees, lenders, creditors,
customers, communities, government and others. It is crucial to consider the fact that companies
do not put equal importance to all the stakeholder and this varies based on different aspects. For
instance, employees of a company are entitled to salary where customers are entitles to fair
trading. It is the priority as well as responsibility of the managements to consider the interests of
all stakeholder groups (Eskerod, Huemann and Ringhofer 2015).
Three Types of Stakeholders in Tesco – As per the 2016 Annual Report of Tesco, three groups
of stakeholders have received utmost importance from Tesco’s management and they are being
considered as the key stakeholders. They are described below.
Colleagues – Colleagues are considered as a key stakeholder group by Tesco (tescoplc.com
2019). The company takes into consideration the interest of this stakeholder group because
management believes that their skills, dedication and expertise play crucial role in achieving
their organizational goals and objectives (tescoplc.com 2019).
Customers – Customers are considered as another key stakeholder group by the management of
Tesco; and customers refer to the people as well as organizations to whom the company sells
their products and services. The company has undertaken certain steps to ensure the interests of
these stakeholders (tescoplc.com 2019).