Strategy and tactics of financial management
The financial activities of the company - is shvydkozminyuvanyy, dynamic process, it should take into account the possible prospects of its development.
Strategic Financial Management is precisely in predicting financial trends of the future, modeling parameters of financial processes, taking into account projected changes in environmental factors.
The financial strategy can be defined as forming a system of long-term goals of financial activity and the choice of the most effective ways to implement them. Due to the orientation of the financial strategy of long-term strategic financial decisions with little detail.
Unlike strategic financial management tactics of financial management characterized by middle-detail solutions, depending on current business opportunities.
In the development strategy of financial management financial manager focused on the need to ensure the self-financing enterprise, ie the accumulation of capital sufficient to finance the expanded reproduction.
So in the process of strategic financial management searches for ways of capital accumulation and redistribution of financial resources in the most promising areas of business or the expansion of the company.
Depending on the achieved level of financial stability entities may elect reference one of the three basic strategies for financial development:
1. Strategy to overcome the instability of the financial system of the enterprise, or a survival strategy, which resorted during the economic crisis, instability and inflation, and when indicators of financial and economic activities become sustainable trend towards deterioration.
2. Strategy support financial stability or stabilization, which is used in a volatile sales and profits, mainly in areas with stable economies.
3. Strategy development or sustainable growth, reflecting the desire of the company to increase sales, increase profitability and improve other indicators of financial condition.
Within the above basic survival strategies, stabilization and development can be realized various strategic alternatives to financial management based on the overall economic development strategy of the company. Place a financial strategy in the system long-term plans of the enterprise shown in Fig. 1.5.
Unlike strategic funding tactical financial management aimed at ensuring compensation for current expenses by revenues, regulation of current payments. In other words, tactical financial management focuses on internal sources of financing in order to ensure self-sufficiency activities. A crucial role for efficient use of the available funds in a specific period of time.
However, despite the difference in terms of goals and degree detaliziyi, strategy and tactics of financial management is largely interconnected and have similar algorithm development.
And tactical and strategic objectives of financial management is equally a priority, despite the fact that according to the principle of strategic orientation of financial management tactic is a form detailing strategies and developed in accordance with the previously defined strategic orientation of the company. But often in real life due to the need to improve the financial performance of current financial managers have to for a while (or even all) to abandon certain strategic actions. Thus, the tactical task may be priority for the company in the following cases:
• seriously worsen financial condition and there is a real threat of bankruptcy;
• When extracting resources for the realization of strategic objectives can lead to poor financial performance of the company over several years;
• the proposed strategic actions are very risky and could have unpredictable effects on the market position of the company and its solvency.