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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.
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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
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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
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The two main external sources of long-term finance include: equity share capital and debt.
TRUE
Financial Strategy?
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The organisation intendeds to advertise on the television
FALSE
Financial Strategy?
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In a profit centre, it can be difficult to track profit.
FALSE
Financial Strategy?
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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?
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Re-cap Learning Objectives
You should now be able to:
1. Assess the suitability of specific financial strategies in a given context.