Strategic Financial Analysis: Data and Decision Making Report

This report, titled "Finance for Strategic Managers," delves into the significance of financial information in shaping business strategies and achieving organizational objectives. It explores various sources of financial data, including cash flow statements, income statements, and financial position...Read More

Finance For Strategic
Managers (TASK 1)

Covered content
• Introduction
• Sources of Financial data suitable for informing business strategy
• Need for financial data and information in relation to formulation of
business strategy
• Risks related to financial business decisions
• Appraisal Methods used in strategic capital expenditure projects and
direction
• Conclusion
• References

Introduction
This presentation defines that the value of
financial information in terms of making
decisions and goals for better business
goals. Investment appraisal techniques for
better decision making also considered in
this presentation. Risk related to financial
decision making also defined that affect
the strategic planning.

Objectives of developing international
accounting standards
Every organisation operates towards a short-term goal which is linked to a
long-term objective that aims to achieve the enterprise's overall mission and
vision. In order to undertake accurate strategic planning measures, the
business managers may take into account certain sources of financial data
that are key indicators of company's long-term growth potential.

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Cash Flow Statements (CFS): This source offers a extensive overview of all
the forms of resources that have been used to satisfy the business' functional,
capital and financial operations. In the context of Samsung's cash flow has been
increased by 7.83% among the year of 2017 to 2018. It means net cash flow
acquirable as a type of cash and cash equivalents are more in 2018 as compared
to 2017. Therefore, the business can carry out expanding operations in the
manner of purchases and new joint ventures by maintaining these earnings for
future investment reasons.

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Income Statement: The particular statement presents overall information of
company's revenue and expenditure with invoices. It helps in analysing net
profitability of company for certain period of time. There is analysing net
profitability of Samsung 5.12% in the between year of 2017 to 2018. As per the
strategy of company defines that revenue growth presents the business where
they can disclose placement of marketing and selling operations to boost of
business's sales. Along with, establish good relation with clients can be
strengthened by attractive in strategic partnership as it help in allotment of the
resources in market where find out low profitability.

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Financial Position Statement: As per the name, the particular source provides
overall financial data to present preview of company stands at a particular point
of time. Unlike, two other sources are depended on the financial periods which
provide information through balance sheet in detailed way. After the analysis of
financial statement of Samsung, in the year of 2016, company definite to assign
50% of its free cash flow with an objective to increase value of stakeholders. In
the year 2018, the equity of shareholders improved by 4.98%. There is focused
on the successful resultant of strategic move selected by Samsung in 2016.

Need for financial data and
information in relation to formulation
of business strategy
A business strategy consist of a group of metrics that allows the
company like Samsung Plc to achieve their visions and missions in
optimistic and realistic way. In the context of any business, execution of
business strategy is a captious step that consist of broad examination of all
the sources like financial data and information within a company.

Risks related to financial business
decisions
Most of the companies make decision on the basis of size, nature and
complexity of the business. It will connect to operational, investing and
financial activities. It is important to remember that each choice is connected
with a certain quantity of danger. As a consequence, it is on upper
management's authority to assess that they are able to take risk and make a
certain company choice. Specific in the financial world, greater hazards are
said to yield greater yields. The main reason of the financial business to exploit
the importance of shareholder. Therefore, it is mainly related with the
investments and existing capital decision and other relative expenditure.

Appraisal Methods used in strategic
capital expenditure projects and
direction
A future path relates to the most appropriate route for a company that can
contribute to successful accomplishment of its general organizational objectives
or goals. To accomplish this, the governance of the business can conduct multiple
project management operations. Again, any company would conduct the
evaluation of capital spending initiatives for both the future plan of action which
could prevent them from taking one step nearer to their goal and mission. For the
reason, Samsung Plc focus on the appraisable method that use for checking the
practicability and property of the projects after understand the concept of time
importance of wealth.

Conclusion
As per the above presentation it has been concluded that financial
information helps to know actual position of company accordance with
prepare effective strategies. With the help of these strategies identified risk
in effective manner and produce plan to assist organisational activities.
There is applying investment appraisal technique to select best alternative
for sustainable growth.

References
Scholes, M. S., 2015. Taxes and business strategy. Prentice Hall.
Karadag, H., 2015. Financial management challenges in small and medium-
sized enterprises: A strategic management approach. EMAJ: Emerging Markets
Journal. 5(1). pp.26-40.
Cairncross, A., 2016. Inflation, Growth and International Finance. Routledge.
Shenkar, O., Luo, Y. and Chi, T., 2014. International business. Routledge.

Thank You