Evaluating the Impact of Financial Management on Business Performance

The proposed research delves into the significance of financial management in driving business success. It seeks to analyze how different elements such as strategic financial planning, efficient allocation of resources, and informed investment decisions contribute to improved performance outcomes. By reviewing existing literature and case studies from diverse industries, this paper will highlight best practices in financial management that lead to increased operational efficiency, profitability, and long-term growth. The findings are expected to offer valuable recommendations for businesses aiming to strengthen their financial strategies and gain a competitive edge.

RESEARCH
PROPOSAL

Table of Contents
Research Title..................................................................................................................................1
INTRODUCTION...........................................................................................................................1
LITERATURE REVIEW................................................................................................................3
To explore the meaning and concept of strategic financial management..............................3
Significance of strategic financial management.....................................................................4
Examine the functions of strategic financial management.....................................................5
RESEARCH METHODOLOGY.....................................................................................................6
Project Specification........................................................................................................................9
Time scale........................................................................................................................................9
REFERENCES..............................................................................................................................11

Research Title
“'To analyse the significance of strategic financial management in measuring the performance of
the banking sector: A case study of Arab bank Plc.”
INTRODUCTION
In an organisation, accounting and financing plays a very crucial role by which income
and expenditure an effectively measure. This helps to this corporation in taking the right decision
about business by analysing all income and outcome of the product and services. In the absence
of systematic financial measurement and accounting, firm can not take the decision about the
further investment and also it can not assess how much actual profit and revenue taken from the
business. With proper management of finance and accounting within the company, top
management can take the decision about the future investment and control the existing additional
expenditure (Importance Of Financial Management , 2017). In the context of bank, financial
management is very important by which banking services can effectively measure. The present
proposal defines the importance of strategic financial management in order to measure the
business performance with respect of banking sector. For attaining this objective, scholar will
use various techniques of research methodology and conduct deep analysis of the information. In
addition to this, systematic literature review will also design in this proposal. The major aim of
this research proposal is to analyse the significance of the strategic financial management in
measuring the performance of banking sector. With proper management of finance and account,
company can effectively manage the performance of banking services. With help of this study,
scholar can effectively know about the strategic financial management and its functions in the
banking sector.
Research Aim
To analyse the significance of strategic financial management in measuring the performance of
the banking sector: A case study of Arab bank Plc.
Research Objective
 To explore understanding of strategic financial management
 To assess the significance of strategic financial management in the banking sector
 To analyse the impact of financial management on measuring banking sector Recommend the strategies through which strategic financial management can improve in
the banking sector
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Rational of the study
In the today's time, financial management in every business enterprise is very essential
because proper management of finance given an effective outcome to business. It helps to design
proper planning and measuring the financial sources through which profitability, expenditure ,
loss can effectively measure by the organisation. This study helps to the investigator in acquiring
the knowledge and information about the financial management in the banking sector so as
researcher can effectively use this study in the other organisation. Investigator has effective
interest in this topic that is why mentioned topic will select as the proposal topic. In addition to
this, investigator desires to investigate in this topic because scholar wanted to get knowledge
about the scope and function of strategic financial management within the banking sector.
Another major reason for selection of this topic is that investigator have enough information
about the topic. The major reason for selected this topic is to analyse the significance of
strategic financial management in measuring the performance of the banking sector is that
researcher wanted to explore his understanding about this subject
Resource Implication
While investigator conduct the investigation then there is requirement of the major three
resources such as finance, time and human resources. In the absence of these resources it is very
difficult to conduct the research investigation. One of the major factor which affect the entire
investigation is time. In order to conduct effective research, scholar required sufficient time
period. However, in the present research investigation, scholar will very limited time period by
which researcher will face the huge issue. In order to accomplish the study in an effective
manner and get the accurate and related outcome, proper time management is very important.
Due to improper and insufficient time period, scholar will face the issue. In addition to this,
another major component which impact to the investigation is fund. Finance is one of the
important resource which required in every activities of research. In the absence of sufficient
fund, it is very difficult to conduct investigation in an effective manner. In various activities of
research like transportation, internet cost, printing stationary etc required sufficient amount of
finance. Due to the lack of sufficient finance, scholar will face the major issue. Furthermore,
human resource is another major resource which required in every investigation. Personnels will
require in various activities such as conducting survey, collecting information etc.
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The major purpose of financial accounting is to analyse the existing income and expenditure
which incurred within the company and analyse these according top the objective. With help of
this, manager can also forecast its future objective and goal. The financial management within
the corporation also assist in developing the effective business strategies and practices because
while company effectively know about its existing situation and performance of finance then it
develops the strategies to improve its competitiveness and strength within the market by
improvement in current services. In the present research study, in order to overcome the impact
of time , scholar will use the Gantt chart method. With help of this mentioned tool, researcher
will organise each research activities according to the specific period of time. This Gantt chart
method assist to scholar in organising each research activities according to the specific period of
time by which the impact of time within the investigation will easily overcome. This technique
will help to scholar in addressing the target because each activities and function will conduct
according to specific target and time. On the other hand, in order to overcome the impact of
shortage of fund, scholar will use activity based costing method in the research study. This
technique assist to investigator in managing the each cot of activities within a specific budget.
LITERATURE REVIEW
To explore the meaning and concept of strategic financial management
According to the view of Ax and Greve, (2016) Strategic financial management plays a
very crucial role within the banking sector by which transaction of finance can easily measure
and control. In a simple word it can be said that it is a concept of planning, directing, organising,
controlling the financial objective within the enterprise. In the contradicting view of Brown and
et.al., (2016) this concept helps to the corporation in managing the financial performance and
measure the allocation of resources and capital. With assistance of strategic financial
management, corporation design the planning about the future procurement and re-adjusting
short term goal within corporation. It is a kind of management approach which can use as a
financial technique ion order to come up with strategic decision making plan. It helps in
managing all organisational assets and liability and also it monitors operational financial items
such as revenue, expenditure, accounts receivable, cash flow, profitability, loss, account payable
etc. With assistance of proper strategic financial management, corporation can control and
measure financial activities like utilisation of fund, procurement etc within the entity. By this
future decision about the assets, investment can take by management in an effective manner. In
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the opinion of Daskalakis, Devanur and Weinberg, (2015) strategic financial management have
major three elements such as investment decision, dividend decision and financial decision.
These three element helps to the management in raising fund and overcome the risk related to
the fund. The major importance of the financial management within the corporation is that while
manager effectively analyse the performance of finance then it may very easy to take the
decision related to the dividend. This is a part of profit which gain by the company after
distribute the return to the share holder.
Significance of strategic financial management
As per the view of Giri and Sharma, (2014) strategic financial management helps to the
corporation in measuring its entire profitability and performance. In the view of Guinea, (2016)
strategic financial management help to the company in controlling its budget. With help of this
concept, form can able to understand its future requirement of finance through which it can
control its budget. In addition to this, it also assessing present situation of the loss through which
it can control and monitor the future expenditure. In a simple term it can be said that financial
management assist to the company in planning its budget and future requirement about assets.
The major significance of the strategic financial management is to analyse the financial
performance of the company and make necessary improvement by changing in the rate of
expenses etc. While manager of finance effectively analyse the financial situation of organisation
then company can able to access its existing requirement of improvement. This financial
management provides the information about the future requirement of changes within the
company so as it can overcome the expenditure related to the business. According to the view of
Järvinen, (2016) with help of strategic financial management, corporation can develop new
strategies, policies, practices etc. In order to improve the financial performance of the company,
management develop the new structure, policies, practices and strategies so this is beneficial for
the enterprise. In the opinion of Schroeder, Clark and Cathey, (2016) in the banking sector,
financial management aids in effective utilisation of the resources. Bank manager can effectively
utilise the available resources while they efficiently utilise the resources. In the companies, its
uses the fixed well as current assets which included in the huge investment. The application of
financial management techniques like capital budgeting tool company can beneficial to replace
the existing asset with the new one. This, it can be said that proper utilisation of resources can
possible by help of the effective financial management within the organisation. In the opinion of
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Taleizadeh and et.al., (2017) financial management have major importance within the company
is related to the dividend decision. Dividend is that thing which gives to the shareholders. With
help of financial management, firm can able to decide how much pay as the dividend and how
much to retain within the company. The decision related to the dividend can take by the
corporation with help of strategic financial management. Because by conducting analysis of the
subject, firm easily know that how much it has gain the profitability and revenue and how much
it required fund in the future.
Examine the functions of strategic financial management
According to the view Taylor and Scapens, (2016) financial management is very
significant aspect within the corporation by which manager of finance can able to take the
decision about the investment in business and allocate the resource for proper utilisation. This
concept helps to the firm in analysing and assessing the income and expenditure through proper
measurement of financial performance of company. Finance manager can also able to decide to
allocate funds into profitable ventures. There are various major functions of financial
management which plays a very significant role within an organisation. As per the opinion of
Thai, Varghese and Barker, (2015) estimation of capital requirement is open of the most
important function within the company. This aids to the financial manager to make estimation
with regard to capital requirement of the corporation. In the contradicting view Uyar and Kuzey,
(2016) management of cash is another important function of the financial management by which
finance manager can take the decision about the cash management. In an organisation, there are
various kinds of uses of the cash like payment of salary, wages, purchase of assets, water bills,
electricity bills, maintenance of the available stocks, meeting current liabilities etc. With
assistance of proper strategic financial management, corporation can easily manage the cash and
its use in the several activities of business. If there is not proper management of cash then
sometime company may face the issue related to the fund and it may face the loss of finance. In
the organisation, for gain effective profitability, it is very important to manage the performance
of finance. It means it should proper allotment of fund and invest right amount in the right
activities of business. Wring decision of financial investment can negatively influence the
profitability and revenue of corporation. Thus, this is major function of the financial
management to measure the cash so as financial manager can take the right decision about the
investment various activities and functions of business. According to the view of Casini,
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Marone and Scozzafava (2014) another major important function of the financial management
ion the business is related to the disposal of surplus. In this function, financial manager can take
the decision of profit by two ways that are dividend declaration and retained profits. Thus, it can
be said that strategic financial performance allows the management to measure financial
performance. With assistance of the effective strategic financial management, bank can measure
and analyse its financial performance. With help of this financial management, corporation can
analyse its future requirement of investment and existing situation of finance. In a simple term it
can be said that major financial management helps to the corporation in analysing its
profitability, loss, income, expenditure etc. According to the view of Christopher, (2016) in the
corporation, strategic financial management have another significant function that is
determination of capital composition.
RESEARCH METHODOLOGY
In the research study, research methodology is very significant aspect by which scholar
can find out effective solution of research problem (Koch and MacDonald, 2014). In the present
research proposal, scholar will focus on some research method of research methodology by
which investigator can effectively analyse the significance of strategic financial management in
measuring the performance of banking sector. Following are some methods which will consider
by the researcher-
 Research Philosophies- This is kind of technique which used in the study for addressing
right outcome of the determined issue of investigation.It is the tool which supports
organization in conducting the study in effective manner (McNeil, Frey and Embrechts,
2015). Interpretivism and positivism are two main philosophies that are used by scholar
while preparing dissertation. Both these techniques are different in nature and used in
different types of investigations. Positivism philosophies is used by researcher in
quantitative type of studies whereas interpretivism is used by qualitative type of studies.
Present research is all about significance of strategic financial management in measuring
the performance of the banking sector (Brigham and Ehrhardt, 2013). As it is qualitative
study thus scholar will choose interpretivism method. With the help of this technique
investigator can gather subjective information about the topic.
 Research design: It is considered as blueprint of the research which supports in
controlling the main factors which may interfere validity of findings. It describes how,
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when and from where related data can be collected by researcher. Exploratory,
descriptive, explanatory are several types of research designs that supports researcher in
conducting investigation in systematic manner (Roberts, 2015). Present study is
qualitative in nature thus scholar will use the descriptive research design. That would
assist in gathering in-depth information about significance of strategic financial
management in measuring the performance of the banking sector. This method has
supported in describing the situation of banking sector and explaining effectiveness of
financial management system (Berger and Bouwman, 2013). Exploratory research
design is not suitable for the present study because it is able to replace conclusive part.
As in this method conclusions are declined at end stage thus good idea can not be taken
into consideration. Use of this technique is quite costly as compare to descriptive
research design.
 Research Approach: It is another tool of research methodology that supports in carry out
the study in specific manner. Inductive and deductive are two main approaches that are
used in different types of studies. Inductive research approach can be considered as
effective tool in which scholar involves theories and model in order to gather detail about
the subject matter (Zingales, 2015). On other hand deductive approach is another method
of research methodology in which researcher has to develop hypotheses in order to reach
to the findings. In the present study on significance of strategic financial management in
measuring the performance of the banking sector investigator will take support of
inductive research approach (Laeven and Valencia, 2013). Theories and models can
explain situation of banking sector effectively and can help in identifying significance of
financial management.
 Research Strategy: Dissertation can be of two types qualitative and quantitative.
Qualitative research strategy researcher takes support of theories and describe situations
effectively. On other hand quantitative research strategy is another method which is
different in nature. In this investigator uses statistical tools to get information about topic.
Present study is on significance of strategic financial management in measuring the
performance of the banking sector which is qualitative in nature. Thus, scholar will
conduct the investigation by using qualitative strategy (Cavusgil and et.al, 2014). With
the assistance of this method individual will be able to explain ideas in effective manner.
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Furthermore, qualitative studies are much more effective in identifying significance of
each element (Minsky, 2015). By involving theories and models in the investigation
researcher will be able to develop understanding and it will support individual in drawing
valid conclusion about significance of strategic financial management in measuring the
performance of the banking sector.
 Data Collection: It is considered as one of the most important tool which supports in
gathering in-depth detail about the subject. There are two main methods of data
collection; primary and secondary. Primary data collection sources are which tools in
which scholar gather information by own. Researcher collect detail specific to the topic,
and these information are not used earlier. These data can be beneficial in developing
understanding level of researcher and can support in finding results. Survey, interview,
questionnaire are various tools included in primary data collection methods. On other
hand secondary data collection sources are another method in which scholar takes
support of already available information. These details have been given by other authors
on the same subject (Giannakis and Harker, 2014). Books, journals, internet articles etc.
are several methods which are involved in the secondary data collection method. Present
study is on significance of strategic financial management in measuring the performance
of the banking sector which is qualitative in nature. For the current topic investigator will
take support of primary data collection source. Researcher will use questionnaire
technique to gather detail about significance of strategic financial management in
measuring the performance of the banking sector. The main purpose of this investigation
is to analysis importance of financial management in order measure performance of
banking sector for that use of questionnaire technique will be the best suitable. By asking
questions with respondents scholar can get to know importance of financial management
in banking sector.
 Sampling: It is the method in which scholar selects population from the mass and get
their response(Gambacorta, Yang and Tsatsaronis, 2014). Simple random sampling
technique method will be used by researcher for the present topic and samples will be
selected randomly. It will support researcher in minimizing bianess and gathering quality
information about the topic. Significance of financial management in banking sector is
the vast topic and in order to gather in-depth relevant information about subject matter
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individual will selects 10 bank managers as sample. With help of 10 managers of the
bank, researcher can able to gain the effective knowledge and understanding about the
banking operation in the country. From these participants' scholar will collect data about
operations of banks, financial management and its impact on banking sector, significance
of financial management. Bank managers are able to give in-depth information about
their working area thus, these would be suitable respond at for the present study.
 Data Analyses: It is another tool of research methodology which is used to analysis all
collected information and finding results. Selection of tool completely depends upon type
of study. In quantitative type of researches individual have to use statistical tools such as
SPSS, T-Test etc (Pagliari and Young, 2014). Whereas in qualitative type studies
researcher can take support of thematic analysis tool. In the present investigation topic of
strategic financial management and its importance in measuring performance of the
banking sector which is qualitative in nature scholar will take support of thematic
analysis technique. Through graphs and charts individual will be able to present
information in effective manner. Researcher will develop themes on the bases of asked
questions which would be related to financial management, operations of banking sector,
significance of financial management and its impact on banking sector. On the bases of
these themes' scholar will draw graphs and charts which will support in presenting results
in accurate manner and minimizing errors.
 Ethical consideration: It is one of the most important part of dissertation. Researcher will
pay attention on maintaining confidentiality and data will not be used for commercial
purpose. Furthermore, investigator will not force any person to share their views.
Individual will send then concern form and after getting their positive concern researcher
will send questionnaire to them (Chen and et.al, 2014). By this way individual will be
able to maintain ethical aspect. By asking questionnaire with them individual will be able
to describe situation effectively. Identity of respondent will be protected, name, number
and rest information about the participants will be saved in password protected file in
computers. Researcher will not disclose their identity to anyone. In addition, researcher
will not copy any information in this dissertation, individual will read each article and
develop understanding level. On the bases of informations scholar will write data in his
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own words (Shin, 2014). This element will support in avoiding chances of plagiarism in
the investigation.
Project Specification
In the present study, for analysing the significance of strategic financial management in
the improving business performance, scholar will desire to collect the information. Thus, scholar
will select primary data collection under which investigator select survey. In order to conduct
survey, scholar will develop questionnaire and will send 15 bank managers of the Arab bank.
This is very effective method to conduct the survey for manager because by this respondent can
freely fulfil the questionnaire and give all required information about the significance of
financial management.
Time scale
ACTIVITY/WEEK 1 2 3 4 5 6 7 8 9 10 11
 Think for the research topic
 Selection of subject by
discussion
 Develop the rationale of
study
 Develop research aims and
objective
 Produce research Questions
 Develop the literature
review
 Design an appropriate
themes
 Focus on the methods of
research methodology
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