Financial strategy in decision making

Making decisions, like providing information, is an essential aspect of every managerial role. Decision-making is required at all phases of the management process, and it is linked to all areas and components of management tasks. The mastery of modern methods and procedures for making and implementing choices is required for the practical solution of issues relating to the organization and implementation of financial and economic operations of companies.

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The financial strategy is an effective act of long-term management of an organization's financial activities, supported by action toward the focus of its overall development during a period when macroeconomic nature, the structure of state regulation for market operations, associated ambiguity,
as well as the conditions of the financial market, are all possible changes.

Specific ideas are taken into account in financial management under financial strategy: cash flow, capital structure, decisions on long term investment, credit policy, dividend policy, financial planning, resource management, and so on.

Financial strategy may be defined as a path for an organization's economic growth, and the following priority areas for the development of financial operations aimed at accomplishing the financial strategy's main purpose are advised when drafting a financial strategy:

• accumulating the organization's financial resources;
• deciding on areas of investment activity;
• ensuring the organization's financial balance.

Conclusion

A financial strategy is a long-term financial action plan involving risk and uncertainty, with the goal of achieving effective organization development through the distribution, acquisition, and also the control of financial resources.

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