Finance for Strategic Managers - Task 1: Evaluating Financial Data

This report, titled "Finance for Strategic Managers - Task 1," delves into the crucial role of financial data in shaping and evaluating business strategies. It begins by emphasizing the importance of financial management for an organization's long-term success, particularly focusing on the strategic use of financial data like those from Samsung Plc. The report then explores key financial indicators such as net cash availability and revenue growth, highlighting their significance in assessing a company's financial health and performance. Furthermore, it examines profitability ratios, offering insights into operational efficiency and the need for corrective actions. The report also addresses various financial risks, including market, credit, and liquidity risks, along with methods for appraising capital expenditure projects such as Net Present Value, Payback Period, Accounting Rate of Return, and Internal Rate of Return. The report concludes by reinforcing the importance of strategic management in effectively managing financial resources within an organization.

FINANCE FOR STRATEGIC MANAGERS
(TASK 1)
30/08/2024

Table of Content
• INTRODUCTION
• Evaluation of the sources of financial data that are
used for knowing the business strategy
• CONCLUSION
• REFERENCES

Strategic managers of an business organisation shall
required to have full knowledge related to financial
management which is essential for long term
survivability of the company.
INTRODUCTION

Financial data of an company like Samsung Plc are very
useful for it key stakeholders to measuring the its business
strategy which a company has made for its future business
operations. Such information is also help the company in
evaluating its business processes in finding that whether it
perform well in achieve its goals and objectives.
Goals and Objectives

CONTINUE…
Net cash available: Any company's net cash may gives
information about its financial fitness. More cash in hand in
an organisation indicates that company has utilising its
financial resources in efficient and effective manner to
generate more cash for new investments.

CONTINUE…
Revenue Growth: A good growth in company's revenue shall
indicate that it has performed its business operations in good
manner and it indicates that company has good scope in future
and company has capability to succeed in the long run

It ratios provides the information about operational
efficiency of an company and provides the areas where
company is required to take some corrective actions. It
may be helpful for various key stakeholders in knowing
the various information about the company's business
strategy because it takes various aspects of its
operations such sales, profits in the given accounting
period.
Profitability ratios

Analysis of the risks related to financial
business decision
Market risk: It relates with risk when a company wants to change the
conditions related to market place form where it compete for its
business.
Credit risk: It is risk which is related to its customer when a company
decide to change its credit period. Company shall required to assess all
the possible effects of such change and according take decision.
Liquidity risk: This is related to company's liquidity position, this mean
that company shall required to manage its working capital requirements
in such a manner that it does not effect in adverse manner.

Review of methods which can be used
for appraising capital expenditure
projects
Net present value:
Payback period:
Accounting rate of return:
Internal rate of return:

CONCLUSION
It is analyzed that strategic management is one of the essential
aspect in terms of managing the financial resources with in an
organization. The presentation defines the strategies and plans
which are effectively carried out in this presentation.

MORDEN, T., 2016. PRINCIPLES OF STRATEGIC
MANAGEMENT. ROUTLEDGE.
OLIVA, F. L., 2016. A MATURITY MODEL FOR
ENTERPRISE RISK
MANAGEMENT. INTERNATIONAL JOURNAL OF
PRODUCTION ECONOMICS. 173. PP.66-79.
OLSON, D. L. AND WU, D. D., 2015. ENTERPRISE
RISK MANAGEMENT IN FINANCE. SPRINGER.
References