Beruflich Dokumente
Kultur Dokumente
by Dr Safdar A Butt
STRATEGIC FINANCE:
CFO AS A MANAGER
Overview of Strategic Finance
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other managers
Whatever he says is not opposed
Contempt:
Necessary evil
Other managers work hard, while finance manager
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Objective
Increasing the wealth of the shareholders
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Controlling
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strategy
Obstacles to achieving the FO: problem
solving
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Strategy
Business Strategy
Operational policies and plans
Operational risk management
Financial Strategy
Financial policies and plans
Raising finance: Long term and short term
Investing: long term assets and working capital
Cash flow management
Financial risk management
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Competitive forces
Limitations on resources
Economic factors
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The Question
Role of Strategy in Finance
Role of Finance in (Business) Strategy
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SWOT in finance
Strengths:
Resourcefulness, ability to use resources effectively
Weaknesses:
Poor systems, inability to use resources properly
Opportunities:
To raise finance; to invest
Threats:
Rising cost of capital, takeovers
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Operational:
Treasury management (Cash and Credit)
Internal / external auditing
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exceptions
Absence of check and balances
Centralization of decision-making process
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Opportunities:
Raising Funds:
Change capital mix to lower the overall cost of
funds
Timing the issue of shares, or raising debt
Borrowing to pay dividend
Investment opportunities:
Buying new fixed assets or companies
Changing asset levels to improve profitability
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Threats
Rising cost of capital
Poor return on existing investments
Immobility of investments
Takeovers from raiders
Bankruptcy arising out of irrational repayment
demands
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Scope of Finance
Financial Management is essentially about
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efforts
managers?
Principal Cause:
Lack of understanding each others perspective
Not necessarily lack of congruence of interests
Short term vision: todays benefits preferred over
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Thank you
Dr. Safdar A Butt
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