Theoretical bases of formation of financial strategy of the enterprise

Yu. A. Buchakchiyskaya

THEORETICAL BASES OF FORMATION OF FINANCIAL STRATEGY OF THE ENTERPRISE

Summary. In the article theoretical principles of forming of financial strategy of enterprise. Her location and value are determined at development of general strategy of development of enterprise. The basic stages of forming of financial strategy are distinguished.

Key words: financial strategy, management an enterprise, general strategy, stages, financial indexes.

The relevance of the topic. In the conditions of market economy, European integration and increasing social welfare society there is an objective necessity of rational use and distribution of economic resources of an enterprise in strategem aspect. As part of an overall economic development strategy, financial strategy should be consistent with the goals and directions of the latter. In turn, financial strategy has a significant impact on the overall economic strategy of the enterprise. The situation changes at the macro level and in the financial market entails the adjustment of both financial and overall development strategy of the enterprise.

Theory and financial strategy, exploring the objective economic laws of market relations, developing forms and methods of survival and development in the new environment. The financial strategy includes methods and practice of formation of financial resources, their planning and ensure the financial stability of the enterprise in market conditions. It covers all forms of financial activity: optimization of fixed and current assets, the formation and distribution of profits, cash payments and investment policy. In the strategy development process, special attention is given to the production of competitive products, domestic resource mobilization, the maximum reduction in the cost of production, the formation and distribution of profits, the effective use of capital, etc., Important for the formation of financial strategy is based on the factors of risk: default risk, inflation fluctuations of the financial crisis. In these conditions, there is a necessity of predicting the future state of the enterprise, and this is only possible when using the financial strategy of the company.

Analysis of recent research and publications.

The study of the theoretical bases of formation of financial strategies of enterprises, engaged in a number of domestic and foreign scientists, including: I. A. Blank, G. Veretennikov, N. Gorecka, Century, Datsenko, V. I. Arany, A. P. Dawn, I. I. Plus, A., Semenov, D. Middleton, M. Miller, and others.

Despite the sufficient level of knowledge of the problems of formation and implementation of financial strategies of the enterprise, and still remain many unresolved issues, namely: there is no justification for a single sequence of stages in the process of formation of financial strategy, its implementation, guidelines on the implementation, which would comprehensively taking into account both quantitative and qualitative characteristics of the entity regarding the use of economic resources, the results of the implementation of reasonable and selected strategic alternatives. This led to the objective necessity of further development of the theoretical statements for the solution of problems of development of financial strategies of enterprises on the basis of a comprehensive analysis of the use of economic resources, taking into account the peculiarities of the current stage of development of economy of Ukraine.

The aim of the article is the analysis of the theoretical foundations of the development of financial strategy and determine its place in the management of the company during the formation of the overall corporate strategy of the firm and establish the main stages of formation of financial strategy of the enterprise.

The main material.

In modern conditions, there is an objective necessity to identify trends in the financial condition, orientation, financial opportunities and projections of the financial status of other entities. The problem of optimizing the financial strategy of the enterprise with the effective generation and use of its potential is particularly relevant, because at the fore front of managers and entrepreneurs face a number of unresolved issues:

- survival in a competitive environment;

- reorientation of thought leaders from internal to external problems of the enterprise in the conditions of dynamic environment;

- the formation of a new corporate culture and management paradigm.

With this in mind, consider the notion of a financial strategy of the enterprise and its place in the overall strategy. Acting The form determines the financial strategy, as one of the most important types of functional strategies of the company, provide all the basic directions of development of its financial activities and financial relations by forming long-term financial goals, selection of the most effective ways of their achievement, adequate adjustment directions of formation and use of financial resources under changing environmental conditions. This strategy has its own special characteristics:

one of the types of functional strategies of the company;

- the most important in the functional strategies;

- provides coverage of all the main directions of development of financial activities and financial Affairs of the enterprise;

- generates specific financial goals and long-term development of the enterprise;

- provides a selection of the most effective ways to achieve the financial goals of the enterprise;

- take into account and adequately responds to changes in the external conditions of the financial activity of the enterprise;

- adapts to changing environmental conditions by adjusting the directions of formation and use of financial resources of the enterprise [1, pp. 13-14].

A. Semenov, gives such an interpretation of the financial strategy is a General plan of action for achieving enterprise funds. Special note when developing a financial strategy given the fullness of the allocation of monetary income, domestic resource mobilization, the maximum reduction of production costs, the proper distribution and use of profits, determining the need for working capital, the rational use of capital. Financial strategy is developed taking into account default risk, inflation jumps and other force-majeure circumstances. Control over the implementation of the financial strategy provides verification of revenue, economical and rational use them [2, C. 36].

G. B. Veretennikov gives the following definition of a financial strategy is focused on the future system of personnel actions for effective involvement, use and redistribution of financial resources, directed on achievement of financial goals, ensuring economic and social development of the ch term financial strategy becomes socially oriented nature, is the inclusion of the human factor as the main resource of the enterprise, the motivation of which is focused on providing high-quality of its formation and implementation [3, P. 6].

According to Ivanyuk U. C., financial strategy is a complex of measures and instruments aimed at the formation, distribution and use of financial resources to ensure the effective use of internal financial capacity and potential external financial flows with timely regulation, coordination and monitoring of action to changing environmental conditions [4, S. 76].

The financial strategy of the company in accordance with its strategic objective provides :

the formation and effective use of financial resources;

the identification of the most effective ways of investment and concentration of financial resources in these areas;

the compliance of financial activities economic status and financial capabilities of the enterprise;

the definition of the main threats from competitors, the correct choice of the dimensions of financial actions and maneuvering to achieve decisive superiority over competitors;

the creation and preparation of strategic reserves;

the ranking and the phased achievement of the objectives;

You can select the following tasks financial strategy:

·  determine how successful financial strategy and use of financial resources;

·  determination of the prospective financial relationships with entities, the budget, banks, etc.

·  financial support operating and investment activities;

·  study of the economic and financial capacity of the likely competitors, the development and implementation of measures to ensure financial stability;

·  development of methods of exit from the crisis and management practices in the crisis state enterprises.

The basic organizational principles of financial development strategy according to N. Goricko [5, S. 74]:

- current and future financial planning, decisive for the future of all funds of the company and the main directions of their use;

- the centralization of financial resources, which provide maneuverability financial resources, their concentration on key areas of industrial and economic activities;

- formation of financial reserves that would ensure the sustainability of the company in terms of possible market fluctuations;

- fulfilment of financial obligations to partners;

- development of accounting and depreciation policy of the company;

- organization and management of financial accounting and financial reporting by the company in accordance with applicable rules and regulations in accordance with the requirements of normative documents;

- financial analysis and control of enterprise activity.

The financial strategy is a tool for livelihoods and way of realization of the General objectives of the enterprise, which includes: forming, planning, accounting, analysis and control of financial resources of the firm. It is consistent with the objectives and directions of the overall development strategy of the company and shall be adjusted by changing exogenous or endogenous factors.

The financial strategy involves a sequence of certain steps. First, it is impossible without gathering information about the market environment of the company (competitors, suppliers, customers, intermediaries, government agencies and service, banking institutions) and its detailed analysis. At this stage, financial managers must apply the appropriate financial instruments: microeconomic financial planning, forecasting, strategic and financial analysis (including SWOT analysis covering the analysis of the strengths and weaknesses of the company, risks and extra features), statistical methods and economic-mathematical modeling. After performing analytical work, carry out appropriate calculations, discussion of alternative scenarios accepted management decision regarding choice of financial strategy, which in further detail in areas of financial policy, and implement in accordance with the plan. If in the process of development and implementation of financial strategies were identified deviations of actual values from the plan and from certain conditions of enterprise activity, an adjustment strategy on the stage at which detected the deviation [6, S. 5].

N. A. Danyluk offers 6 consecutive stages of the formation of financial strategy of the enterprise [7, S. 326-328].

At the first stage of development and synchronization (coordination) strategic goals of the enterprise. The purpose of the financial strategy must obey the overall economic development strategy and directed at maximizing profits and market value of the company.

At the second stage it is necessary to determine the period of implementation of the financial strategy of the enterprise. Long-term plans cover the period from 3 to 10 years. Familiar are the strategic plans for five years, which are reviewed when it becomes known some important new information. The strategic planning period depends on the specifics of the company, its industry sector, level of uncertainty and dynamic environment.

In the third stage is the analysis and evaluation of the current financial potential of the company. In theory, there are methods for estimating potential enterprises that take place depending on the purpose of the entity - cost, performance, market. Cost method estimates the value of the strategic potential lies in determining the value of all the total and available enterprise resources. The use of financial potential with this concept is determined by the ratio of the result to the valuation used for certain types of resources. When using the original method of assessing the value of strategic capabilities it is advisable to take into account the number of manufactured and sold products, financial results of the organization.

At the fourth stage developed financial policy of the company on the main directions of financial activity, in particular: tax, price, depreciation, dividend, policy management, accounts receivable and payable, etc

In the development of a system of measures ensuring the implementation of the financial strategy (stage V), the company formed a “responsibility centers”, defines the rights, obligations and penalties of their heads for the results of the implementation of the financial strategy of the enterprise.

Final VI stage of development of the financial strategy of the enterprise is to evaluate its effectiveness. This assessment can be based on predictive calculations of various financial indicators, but also on the basis of forecast non-financial results of the strategy implementation, such as the growth of the business reputation of the enterprise, improving the financial management of its business units, etc.

The success of the financial strategy of the enterprise is guaranteed when the financial strategic objectives reflect the real economic and financial capabilities of the enterprise, financial management practices are flexible and adequate to the changes in the financial and economic situation.

Conclusions and prospects for further research.

Financial strategy is an integral part and a key element in the strategic management of the company, which should be coherent and consistent with the objectives, directions to the formation of the overall development strategy of the enterprise. It gives the opportunity to build financial reserves of the company as a means to counter the possible changes in the external environment. Using this strategy, you can evaluate the results of ongoing work and to determine the management of the enterprise in future activities.

The financial strategy is expedient to carry out according to the proposed stages, which give a better understanding on what key points need to pay attention when establishing the objectives of a financial nature and duration of their implementation. It is also important to assess the existing potential, which are the strengths and weaknesses of enterprises, which provide opportunities for the gradual elimination of the problematic aspects of the company.

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