Analysis of Financial Data and Strategic Decision Making Report

This report provides a comprehensive analysis of financial management, focusing on how financial data informs business strategy and decision-making. It explores the importance of financial data sources, including company reports and financial databases, for organizations like Samsung PLC. The report delves into the risks associated with financial business decisions, categorizing them into financial, operational, and strategic risks. Furthermore, it examines various methods used to appraise strategic capital expenditure projects, such as the payback period, net present value, internal rate of return, and average rate of return. The conclusion highlights the significance of strategic financial management in formulating effective business strategies and emphasizes the role of financial data in facilitating informed decision-making, ultimately contributing to organizational success. The report references key concepts and methods relevant to financial management.

Finance for
Strategic Manager

Table of Content
• Introduction
• Sources of financial data which can be used to inform business
strategy
• Need for financial data and formulation of business strategy
• Risks related to financial business decisions
• Methods used to appraise strategic capital expenditure projects and
strategic direction
• Conclusion
• References

Introduction
Proper financial management is very important for every organisation.
Strategic financial management refers to the process to setting and
achieving organisational goals in an effective manner. This project
consist sources of financial data that an organisation need to form
business strategy. There are various methods to collect financial data
such as Net present value, Average rate of return, Internal rate of return
etc. The main objective of the project is to determine the risk related to
financial business decisions.

Sources of financial data which can be
used to inform business strategy
Gathering and using the accurate financial data sources in formulation
of business strategy is very important for the success of the business.
Samsung PLC use two type of sources to collect financial data. These
sources are explained below:
•Company reports and regulatory filings
•Financial database

Need for financial data and formulation
of business strategy
Need for financial data: Financial data provides various information
through financial statements, that investors, creditors use to analyse
financial performance of the organisation. In Samsung PLC most of the
information is presented by financial statements, that is helpful for the
shareholders.
Formulation of business strategy: Financial data helps the managers
of Samsung PLC while formulating the business strategy because it
provides internal information of the organisation.

Risks related to financial business
decisions
Risks represents the chance, that an organisation will go through a loss,
it can negatively affect the attempts of management to increase
profitability of the organisation. There are three types of risks related to
financial business decisions that Samsung PLC have to face. Those are
explained below:
•Financial risks
•Operational risks
•Strategic risks

Methods used to appraise strategic capital
expenditure projects
There are four types of methods used by Samsung PLC and these
methods are explained Below:
•Pay back period method
•Net present value method
•Internal rate of return method
•Average rate of return method

CONCLUSION
From the above project report it has been concluded that, strategic
financial management is a system that helps the management to form
business strategies for the best performance of the organisation.
Financial data provide such information that is helpful in the decision
making, it is collected through two sources, company reports and
financial database. Samsung PLC use various methods to enhance
capital investment of the business those methods are net present value,
internal rate of return, payback period etc.

REFERENCES
Ward, K., 2012. Strategic management accounting. Routledge.
Wheelen, T. L. and Hunger, J. D., 2011. Concepts in strategic
management and business policy. Pearson Education India.
Wuttke, D. A., and et. al., 2013. Managing the innovation adoption of
supply chain finance—Empirical evidence from six European case
studies. Journal of Business Logistics. 34(2). pp.148-166.

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