Use of Financial Analysis in Operational and Strategic Management in Practice of Polish Business

2020 ◽  
pp. 115-125
Author(s):  
Katarzyna Goldmann
Keyword(s):  
Strategic Management ◽  
Financial Analysis

scholarly journals Strategic management controlling system and its importance for SMEs in the EU

2020 ◽  
Vol 18 (3) ◽  
pp. 362-372
Author(s):  
Miroslav Pavlák ◽  
Přemysl Písař
Keyword(s):  
Strategic Management ◽  
Financial Analysis ◽  
Business Environment ◽  
The European Union ◽  
Term Stability ◽  
Long Term Stability ◽  
Controlling System ◽  
Depth Analysis ◽  
The University

The current hyper-competitive environment offers many great opportunities for small and medium-sized businesses (SMEs), but on the other hand, this business environment is also hazardous. SMEs are a significant economic power and employer in the European Union. Their competitiveness and long-term stability are a crucial factor for European cohesion and economic growth. The research aim is to design a strategic management controlling system that should be implemented to SMEs and be useful for their long-term future development. The study was conducted in 2017–2020 based on data from 403 SMEs. The PAPI method was used to collect data. The implications between defined variables controlling, ROA, turnover, financial analysis, and strategic management were explained, and the results obtained from an in-depth analysis were indicated. The research was concluded by a model of strategic management controlling system tested by experimental in-practice implementation on SMEs and verified. The model and the research findings are suitable for business practice and should support the long-term stability and development of SMEs. AcknowledgmentThe paper has been prepared within the project “Risk Management in Industry 4.0” (7427/2019/02 IGA VŠFS) using the objective oriented support for specific university research of the University of Finance and Administration.

Tackling Weaknesses in Students’ Financial Analysis Capabilities: A Value-Based Exercise for Strategic Management Courses

2020 ◽  
pp. 237929812090951
Author(s):  
William R. Carter
Keyword(s):  
Quantitative Analysis ◽  
Firm Performance ◽  
Strategic Management ◽  
Financial Analysis ◽  
Management Process ◽  
Strategy Execution ◽  
Current Strategy ◽  
A Value ◽  
Strategic Management Process

Appraising firm performance is an important aspect of the strategic management process. Unfortunately, many students in strategic management courses do not have adequate financial analysis skills to do this task. This deficiency affects their ability to learn and perform the full scope of the strategic management process. This article presents an exercise designed to address this challenge. The exercise emphasizes the central objective of strategic management, that is, the achievement of superior levels of creating and capturing value. The brief lesson and exercise enable students to use simple accounting metrics to appraise the quality of a firm’s current strategy, execution capabilities, and resulting competitive position. Primarily for undergraduate courses in which numerous students are challenged by quantitative analysis tasks, this exercise alleviates the need for instructors to invest an inordinate amount of time reteaching financial analysis.

scholarly journals INTEGRATED APPROACHES TO ASSESSMENT OF STRATEGIC MANAGEMENT EFFICIENCY

2016 ◽  
Vol 2016 (5) ◽  
pp. 75-82
Author(s):  
Надежда Бойко ◽  
Nadezhda Boyko
Keyword(s):  
Complex System ◽  
Strategic Management ◽  
Balanced Scorecard ◽  
Business Processes ◽  
Financial Analysis ◽  
Assessment System ◽  
Achievement Level ◽  
The Balanced Scorecard ◽  
Management Efficiency ◽  
Complex Monitoring

The article specifies the need for reorganization of the existing control concepts towards the strategic orientation. The essence of strategic control is formalized, and the difficulties arising at the Russian enterprises fol-lowing such restructuring. The necessity to develop a complex scorecard is justified It allows, on the one hand, to transfer the strategy to operational terms, and on the other hand to provide a possibility of back coupling and complex monitoring of implementation of this strategy. The analysis of various modern concepts of strategic management is carried out, it has shown advantages of the balanced scorecard concept which allows to present the strategy of the enterprise in a system of clearly formulated goals and tasks, and also the indicators providing feedback and defining the achievement level of strategic goals in terms of following aspects: finance; marketing; internal business processes; per sonnel, training and growth. Criteria for the indicators selection characterizing each projection of the system are considered. The ob-servance of the principles testifies to systemacity of approach and interrelation of the selected indicators. The algorithm of a complex system creation for an assessment of strategic management efficiency using key components of Balanced Scorecard (BSC)-model on the basis of the financial analysis of the company is offered. The key indicators of the assessment system of strategic management efficiency are presented. They are selected according to the given algorithm. Advantages of the complex system for an assess-ment of strategic management efficiency are defined; expediency of its application at Russian enterprises is proved.

Strategic Management of the Main Elements of the Bank's Financial Strategy

2020 ◽  
pp. 96-109
Author(s):  
Tatiana P. Goncharenko
Keyword(s):  
Risk Management ◽  
Strategic Management ◽  
Banking Sector ◽  
Financial Analysis ◽  
Profit Maximization ◽  
Risk Minimization ◽  
Financial Strategy ◽  
Theoretical Understanding ◽  
Liability Management ◽  
Asset And Liability Management

The banking sector has typically operated in a highly competitive environment, which has increased significantly as a result of recent structural economic transformations. Such conditions require a more thorough exploration of one of the fundamental elements of a bank's strategic management, i.e its financial strategy, the proper construction and adherence of which will let it successfully adapt to existing and possible changes and ensure effective financial activities. This article systematizes the theoretical understanding of the main elements in the bank's financial strategy during strategic management, which include asset and liability management, risk management, revenue management, expenses and profit/loss. The author analyzes the history of the main object formation in the assets and liabilities management of the bank, as well as the peculiarities of financial analysis of assets and liabilities. In particular, the author studies the issue to ensure a sufficient level of bank liquidity, risk minimization and profit maximization as assets and liabilities management goals. While studying the features of revenue, expenses and profit/loss management, the main approaches and directions for their implementation are identified. As a result, the author of the article proposed to consider the bank’s financial strategy in terms of its main elements, distinguishing such components as the regulation of financial status indices and financial activity results. Key words: strategic management, bank, financial strategy, asset and liability management, risk management, revenue, expense and profit or loss management.

scholarly journals An activist investor’s successful corporate governance and strategic management impacts: An updated L Brands case study

2021 ◽  
Vol 17 (3) ◽  
pp. 61-71
Author(s):  
Hugh Grove ◽  
Maclyn Clouse
Keyword(s):  
Corporate Governance ◽  
Strategic Management ◽  
Initial Public Offering ◽  
Financial Analysis ◽  
Public Information ◽  
The Public ◽  
Public Company ◽  
Public Offering ◽  
Industry Experience

The key research aim of this paper is to analyze whether an activist investor’s recommendations for financial, corporate governance, and strategic management performances were successful or not. This paper updates the initial case study of the activist investor, Barington Capital Group, in analyzing the performance of a public company, L Brands, which had lost $20 billion in market capitalization in the last three years prior to the public letter from Barington to the L Brands CEO in March 2019. This updated case study analyzes whether Barington’s initial recommendations worked as operational guidelines for improving L Brands’ financial, corporate governance, and strategic management performances. From its financial analysis, Barington recommended either an initial public offering of the superior performing Bath & Body Works brand or a spinoff of the weak performing Victoria’s Secret brand. From its corporate governance and strategic management analysis, Barington recommended that L Brands improve the composition of its board of directors whose deficiencies in director independence, industry experience, and diversity hindered its ability to effectively oversee and advise strategic management. It is important to note that this paper was prepared exclusively with public information.

scholarly journals Key stages of financial strategy development for construction enterprises

2019 ◽  
pp. 221-228
Author(s):  
Yulia Yurchenko
Keyword(s):  
Strategic Management ◽  
Asset Management ◽  
Financial Risk ◽  
Financial Analysis ◽  
Theory And Practice ◽  
Strategy Development ◽  
Financial Strategy ◽  
Construction Enterprises ◽  
Value Based Management ◽  
Definition Of

The subject of the study covers theoretical, methodological and practical aspects of strategic management of financial activity of construction enterprises. The purpose of the work is to determine the theoretical and methodological provisions and to substantiate the practical recommendations for the development of financial strategy of construction enterprises including definition of the sequence of stages and their essence from a methodological point of view. Method or methodology of work. The theoretical and methodological basis of the research includes general scientific (dialectic, structural and functional methods) and special methods of cognition of the studied economic phenomena and processes. Result of work. The article presents the essential characteristics of the financial strategy of construction enterprises, its features, structural elements and the course of its development and implementation stages. The paper describes and proposed areas in which it is necessary to develop a financial strategy for construction enterprises. Areas of results application. The results of the study can be used in the theory and practice of strategic management of construction enterprises in the process of developing and implementing their financial strategy. Conclusions. The financial strategy development is a long and complicated process covering the following stages: analysis of the strategic financial position of the construction enterprise, including financial analysis of external and internal environment; definition of the strategic financial goals; financial strategy development in the following areas value-based management, accounting, asset management, cash flow management, credit policy, investment policy, financial risk management, dividend policy; financial strategy implementation and monitoring.

scholarly journals Noble Systems Inc.: Inside The Mind Of An Entrepreneur

2014 ◽  
Vol 10 (3) ◽  
pp. 263-292 ◽  
Author(s):  
Paul Schumann ◽  
Timothy Scott ◽  
Jon Kalinowski ◽  
John Kaliski ◽  
Claudia Pragman
Keyword(s):  
Strategic Management ◽  
Human Resource ◽  
Swot Analysis ◽  
Financial Analysis ◽  
Strategic Human Resource Management ◽  
Strategic Marketing ◽  
Business Valuation ◽  
Start Up ◽  
Business Opportunities ◽  
The Mind

This case illustrates the challenges faced by typical start-up businesses. The company has never earned a profit. Losses are being covered by cash infusions from angel investors. While significant business opportunities are present, the company doesnt have the money to pursue them all. Essentially, the case involves problems of growth, vision, potential, and management. The problems illustrated in the case can be analyzed using theories and approaches such as: SWOT analysis, financial analysis, business valuation, strategic human resource management, and strategic marketing/management. The case and Instructors Manual were written for undergraduate or MBA courses in strategic management. They can also be used in an entrepreneurship course if the instructor wishes to have a case that illustrates the strategic challenges associated with the decision whether to stay small and within the abilities of the founders, or to grow beyond their capabilities.

scholarly journals FINANCIAL ANALYSIS AS A STRATEGIC TOOL: THE CASE OF SMES IN THE REPUBLIC OF KOSOVA

2018 ◽  
Vol 19 (0) ◽  
pp. 186-194 ◽  
Author(s):  
Albana Berisha Qehaja ◽  
Hysen Ismajli
Keyword(s):  
Strategic Management ◽  
Empirical Data ◽  
Scientific Literature ◽  
Financial Analysis ◽  
Decision Makers ◽  
Service Sectors ◽  
The Republic

This paper examines the use of financial analysis as a strategic tool in SMEs. Empirical data are collected from 303 SMEs in the Republic of Kosova, operating in production, trade and service sectors. The aim of this study is to assess the extent to which the business financial analysis is employed in the sampled enterprises and to determine whether there are differences in the usage of it, within small and medium-sized enterprises and sectors. The results show that Kosovan SMEs greatly use financial analysis as a strategic tool. Moreover, significant differences are found between small and medium-sized enterprises regarding its usage and no significant differences among production, trade and service sectors. This paper contributes to the existing scientific literature, especially in the strategic management field. Additionally, this paper will likely contribute to decision makers’ increased use of business financial analysis as a strategic tool in their enterprises.

scholarly journals BALANCED SCORECARD AND STRATEGIC MANAGEMENT ACCOUNTING SYSTEM: DIRECTIONS OF INTERACTION

2021 ◽  
pp. 72-79
Author(s):  
Gryn V.
Keyword(s):  
Strategic Management ◽  
Balanced Scorecard ◽  
Financial Analysis ◽  
Management Accounting ◽  
Future Orientation ◽  
Information Provision ◽  
Integrated Approach ◽  
Accounting System ◽  
The Balanced Scorecard ◽  
Strategic Management Accounting

The urgency of considering the balanced scorecard as a method of strategic management accounting has been substan-tiated. The factors influencing the choice of methods of strategic management accounting of a particular enterprise have been highlighted (specific features of economic activity of the enterprise; specific features of the strategic management system of the enterprise; availability of free financial resources to build an information system of strategic management accounting of the en-terprise; management and accounting traditions). The approaches of Ukrainian scientists to the choice of methods of strategic management accounting have been analyzed. The advantages of the balanced scorecard in comparison with other methods of strategic management accounting have been considered. The essence of the balanced scorecard as a method of strategic man-agement accounting and the goal of each of its perspectives have been revealed. Proposals for the development of a balanced scorecard as a method of strategic management accounting in the research of Ukrainian scientists have been analyzed. The influence of the balanced scorecard system implementation on the transformation of system of information provision of strategic management of the enterprise in the context of the four basic directions has been analyzed (clarifying the vision and translating it into strategy; establishing communications and communication; implementation of planning and goal setting; establishing stra-tegic feedback). The procedure for constructing strategic maps of different levels in a balanced scorecard has been considered. The reasons for the possibility of understanding the balanced scorecard as a method of strategic management accounting have been determined (strategic orientation, external orientation, future orientation, application of financial and non-financial indica-tors). A balanced system of indicators is considered as a new method of strategic management accounting, using a process approach to understanding the enterprise, providing an integrated approach to strategic and financial analysis, providing a com-prehensive analysis of the enterprise (internal and external environment). The main ways of development of engineering bases of construction of system of strategic financial accounting are allocated and analyzed.Keywords: strategic management accounting, balanced scorecard, strategic accounting information, strategic control.Обґрунтовано актуальність розгляду збалансованої системи показників як методу стратегічного управлінського обліку. Виділено фактори, які впливають на вибір методів стратегічного управлінського обліку конкретного підприємства. Проаналізовано підходи вітчизняних вчених до вибору методів стратегічного управлінського обліку. Розглянуто переваги збалансованої системи показників у порівнянні з іншими методами стратегічного управлінського обліку. Розкрито необхідність розробки інформаційних надбудов до системи фінансового обліку для формування додаткової стратегічної інформації. Виділено додаткові види інформації. Розкрито сутність збалансованої системи показників як методу стратегічного управлінського обліку та мету кожної з її перспектив. Розкрито необхідні джерела інформації для фор-мування похідного стратегічного балансового звіту підприємства. Розроблено модель формування похідного стратегіч-ного балансового звіту підприємства, яка дозволяє розраховувати інжинірингові показники (чисті активи, чисті активи після здійснення коригувань, хеджовані чисті активи, стратегічні чисті активи, чисті пасиви) для аналізування результатів стратегічного управління підприємством. Проаналізовано вплив впровадження збалансованої системи показників на трансформацію системи інформаційного забезпечення стратегічного управління підприємством. Визначено причини можливості розуміння збалансованої системи показників як методу стратегічного управлінського обліку. Запропоновано структура збалансованої системи показників із доповненням показниками (метриками) з трьох додаткових перспектив підприємства (клієнти, внутрішні бізнес-процеси, навчання і кар’єрне зростання). Розглянуто збалансовану система показників як новий метод стратегічного управлінського обліку, з використанням процесного підходу до розу-міння діяльності підприємства, забезпечення інтегрованого підходу при здійсненні стратегічного та фінансового аналі-зування, забезпечення комплексного аналізування діяльності підприємства (внутрішнє та зовнішнє середовище). Виділено та проаналізовано основні шляхи розвитку інжинірингових засад побудови системи стратегічного фінансового обліку.Ключові слова: стратегічний управлінський облік, система збалансованих показників, стратегічна облікова інформація, стратегічний контроль

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