ATHE Level 7 Finance for Strategic Managers Report: Samsung PLC

This report, prepared for a Chamber of Commerce committee, examines the financial data and strategic decision-making processes of Samsung PLC. It begins with an introduction to strategic management and its role in achieving organizational goals, emphasizing the importance of financial data in strategic decisions. The report includes a PESTLE analysis to evaluate external factors impacting the business and discusses the significance of financial statements like the balance sheet and income statement in assessing financial positions and performance. Furthermore, it highlights various financial and operational risks that can affect business decisions, such as financial, liquidity, and operational risks. The report aims to provide insights that local businesses can apply to their operations, using Samsung PLC as a case study to demonstrate financial analysis and strategic planning.

Finance for Strategic

TABLE OF CONTENTS
 Introduction
 Main Body
 Conclusion
 References

INTRODUCTION
 Strategic management is an effective tool which helps in efficient planing,
organizing, assessing, analysing and monitoring the necessary activities to attain
desired goals and objectives in a systematic and timely manner. Strategic
management focuses on evaluating the market data, profitability and strategic
project managers for long term sustainability growth.
 This study will highlight, financial data which helps in strategic decision making.
It also helps in assessing financial information which helps in formulating various
business strategy.

Impact of macro environment on business operations
Macro environment –
 It refers to the part of business environment that consists of external factors
that can impact the operations of the company indirectly and firm cannot
fully control these factors. Macro environment involves those factors that
may impact the performance, decision-making, various types of strategies of
the firm related with pricing, distribution and marketing etc.
PESTLE Analysis -
 PESTLE analysis refers to the tool that an organisation can use for
evaluating the different types of factors that are existing in the external
environment outside the organisation.
 Tesco will use PESTLE analysis for identifying the positive as well as
negative impact of factors such as political, social, legal, economical etc. on
the operations of the firm.

Financial data and strategic decision making.
Balance sheet statement: It is an effective statement which helps in analysing the
financial position of the company. This statement mainly comprises of assets,
liabilities, equity for a particular period. This helps in effectively analysing the
management of the organization to take necessary strategic decision by predicting
life of the machinery and fixed assets by calculating depreciation and their
estimated life value.
income statement: This statement effectively shows the profit and loss of the
particular period. This helps company in effectively analysing the expenses,
revenue and net loss or income for the particular financial period. This helps in
managing the expenses of the company by setting specific budget. It helps in
evaluating the income and expense for the set period of time and take necessary
decision if expenses exceeds income, for higher revenue and profitability.

Risks related to financial business decisions.
There are various financial risks such as managing debt, insufficient capital, non- availability of resources,
reputation risks, strategic risk, operational risk, financial risk and compliance risk which hampers the financial
business decision of the organization . There are various other risk like legal risk, liquidity risk, business risk,
insurance risk, market risk, credit risk which hampers the operational efficiency and productivity of the
Samsung plc.
Financial risk: It is a risk associated with financial transactions which mainly comprises of uncertainty, financial losses, etc. which
adversely hamper the functioning of the Samsung plc.
Liquidity risk: It is a type of risk where company is unable to pay short term requirements of the business.
Operational risk: it is a risk which is associated with inadequate system, structure, policies of the organization. It also leads to lower
employee errors, criminal activity, fraud, system failures, etc.

REFERENCE
Abor, J.Y., 2017. Evaluating Capital Investment Decisions: Capital Budgeting. In Entrepreneurial Finance for
MSMEs(pp. 293-320). Palgrave Macmillan, Cham.
Al-Mutairi, A., Naser, K. and Saeid, M., 2018. Capital budgeting practices by non-financial companies listed on
Kuwait Stock Exchange (KSE). Cogent Economics & Finance.6(1). p.1468232.
Almazan, A., Chen, Z. and Titman, S., 2017. Firm Investment and Stakeholder Choices: A Top‐Down Theory of
Capital Budgeting. The Journal of Financ. 72(5). pp.2179-2228.
Ansoff, H.I and et.al., 2018. Implanting strategic management. Springer.