3.5 selecting financial strategies (part 1) - moodle
-
Upload
misshowardha -
Category
Documents
-
view
423 -
download
0
description
Transcript of 3.5 selecting financial strategies (part 1) - moodle
Learning Objectives
By the end of this session you will be able to:
1. Assess the suitability of specific financial strategies in a given context.
What are financial strategies?
Plans of action that will help a business to develop and maintain a competitive advantage and achieve financial objectives.
Example – lower costs to below that of competitors.
Selecting Financial Strategies
Produce an information poster to explain different financial strategies including:
Sources of finance Implementing profit centres Cost minimisation Allocating capital expenditure
Prepare to feedback….
Your challenge
The two main external sources of long-term finance include: equity share capital and debt.
TRUE
Financial Strategy?
The organisation intendeds to advertise on the television
FALSE
Financial Strategy?
In a profit centre, it can be difficult to track profit.
FALSE
Financial Strategy?
A business that has a high market share is in a position of power when it comes to negotiating terms with suppliers.
TRUE
Financial Strategy?
Re-cap Learning Objectives
You should now be able to:
1. Assess the suitability of specific financial strategies in a given context.