Strategic Financial Management and Research Activities
Added on 2020-11-12
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TITLE: To analyse the significance of strategic financial management in measuring the performance of the banking sector. A case study on "ABC BANK PLC".INTRODUCTIONOverview of the ProjectStrategic financial management is considered as a study of finance with a long term view which considers the strategic goals of any financial institution or agencies. Understanding of bank financial management is helpful in order to determine effectiveness of banking operations. It evaluates, whether the bank is performing to an acceptable level. It can be done in a systematic way for the entire banking industries. It might be done temporarily or for a particular aim so that overall growth and profitability of banks can be enhanced in near future (Finnerty, 2013). Strategic financial management tools are effective in strengthen the company and creates value in developing the performance of firm in appropriate manner. Strategic financial management has involve various tools like reporting/ analytics, cash positions management, accelerate receivables, control payables, manage expenses etc. these tools are effective in measuring the performance of banking sector in appropriate way. Strategic financial management includes precise analysis of an organisation's business objectives, goals, determining and quantifying its available or significant resources and devising a plan for utilising finance and other capitalresources to attain its targets. Due to industry pressures, many banks have to stretch themselves into market sectors. Strategic management in banking plan provides senior bankers and board members with wide range of opportunities to reassess and explore the upcoming banking developments. The banking industry is generally considered as an old industry and it is one of the essential factor behind the growth and development of countries economy. Due to the contribution of banking industry which is provided to the societies or countries. ABC BANK PLC is the chosen organisation for this particular
report. It is an international bank which provides various financial products and services in the country of United Kingdom and internationally. The major focused area of firm is towards attaining higher growth and profitability through managing the financial as well as other resource of firm in appropriate manner. Resources are the key element of any business organisation as the financial and the other resources are required to be mentioned in respect to attaining the targeted objectives of the firm. It is necessary for banking industry to maintain its finance and capital in order to conduct long term businessoperations which are beneficial for growth and development of firm. The present research is based on the analysis of significance of strategic financial management in measuring the performance of banking sector (Kerzner, 2011). In this report, importance of strategic financial management and its influence on the performance of the firm will also be discussed. Background of the ResearchIn this particular research, an analysis of modern banking in a competitive environment is provided. Modern banking operations involve dynamic strategic planning in which a clear mission is mentioned and this is significantly connected with profitability of firm. Different strategies are created and certain objectives and goals are placed in a systematic way as to assisting the operations of firm in right direction (David, 2011). ABC BANK PLC is an international bank and it’s headquarter is in Manama, Kingdom of Bahrain. The network of the company spreads around five continents which covers the middle East, North Africa, Europe, the Americas and Asia. ABC BANK PLC is founded in year of 1980 and it is listed on the Bahrain Bourse and our major shareholders are the Central Bank of Libya and Kuwait Investment Authority. The company provides trade finance solutions comprising contract bonding, documentary letters of credit, specialized documentary, commodity finance, ECA financing, private insurance backed products, Islamic finance, receivables financing, and forfeiting; and project and structured finance advisory services to clients in the oil and gas, power and water, petrochemicals, mining and metals, telecommunications, infrastructure, shipping, and aviation sector. The ABC BANK
PLC is concerned on providing effective financial products and services to their significant customers in respect to sustain them for long run of business operations. The company is significantly focused on using strategic financial management tool in respect to maintaining the resource of firm so that growth can be attained in effective manner. Significance of ResearchThis research is conducted to provide a better understanding on the concept of strategic financial management and its impact on the performance of banking sector. This research work will helpreaders and scholars to ascertain the importance of this method with the context of banking segment of financial services sector. This research will play a pivotal role for future researchers as they wont need toconduct any market research and can analyse various results by considering this research report (Bryce, 2017). This research can help scholars engaged in the study of finance and the professionals engaged in management of banking company. In this report, ABC BANK PLC has been analysed which can assist professionals working in banking segment. With the help of this research, researcher will be able to gain knowledge and understanding about the topic and will be able to convey all aspects of this topic. Management of ABC Bank will also be benefited as they can ascertain their problems areas and ways by which strategic financial management can increase their financial performance. Importance related to the topic of strategic financial management includes identification of ability of measuring financial power of an organisation. Purpose of this ResearchThe reason behind conducting this research is to understand the concept of strategic financial management and its significance in banking sector especially in ABC BANK PLC. The major purpose of this research is to overcome with the issues related with previous research of same area. The main focusof this report is banking segment of financial services (Resch, 2011).
Research AimThis is the most fundamental element of a research project as it provides an appropriate direction to the researcher or investigator about the topic. The major aim of this research is “To analyse the significance of strategic financial management in measuring the performance of the banking sector”.A case study on ABC BANK PLC. Research Objectives Research objectives for this investigation are mentioned below:To identify the concept of strategic financial management. To determine the importance of strategic financial management in banking sector especiallyABC BANK PLC. To evaluate the strategic financial management tools which help in measuring the performanceof ABC BANK PLC. Research QuestionsQuestions for this specific research are portrayed below:What is the concept of strategic financial management? What is the importance of strategic financial management in banking sector especially ABCBANK PLC?What are the strategic financial management tools which help in measuring theperformance of ABC BANK PLC?LITERATURE REVIEWThis element of the research includes in depth research about the objectives of the research. This segment provides a theoretical framework which helps in deciding the assessment of different
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