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.