Implementation Of Financial Strategy Research Articles

The role of strategic financial management in ensuring the competitiveness of enterprises

This paper presents a methodology for assessing the level of strategic financial management in an organization, which is based on determining the criteria for the overall economic efficiency of organizational activity. It was established that financial management plays an important role in the overall management system of the organization, since financial resources are the source from which other types of resources are formed - material, labor, investment, and one of the main factors that ensure the competitiveness and financial stability of the organization. Strategic financial management is an important element of entrepreneurial activity and important elements of entrepreneurial activity. The instability and unpredictability of changes in the external environment of the business structure requires the management of the organization to develop an adaptive and effective system for making business decisions. The system of strategic financial management in the organization consists of strategic financial analysis and comprehensive assessment of the strategic financial position of the organization, strategic financial planning, development of strategic criteria for the financial activity of the organization, adoption of strategic financial decisions, formation and implementation of financial strategy, strategic management system and assessment of the level of strategic financial management. Criteria for the effectiveness of strategic financial management have been determined. The criteria are divided into blocks according to the influence of factors of the organization's internal and external financial environment. It is proposed to evaluate the level of strategic financial management of an organization as a sum of criteria for its overall effectiveness. The proposed method of assessing the level of strategic financial management can be considered as the first step towards the organization of the management system of the activity of the economic entity as a whole. Its application makes it possible to create a database for analyzing the organization's financial condition and improve the financial management system for making effective management decisions.

Financial strategy in the public governance system

Relevance of the research topic. The current stage of socio-economic development of both countries with developed and transformational economies is characterized by uncertainty of the external environment, intensification of globalization processes, which raises the issue of substantiation of financial strategy, specification of its tasks and development of tools for their solution. Formulation of the problem. With increasing volatility of socio-economic dynamics, the COVID-19 pandemic raises the need to develop a public financial strategy that will improve the quality of fiscal risk assessment, develop tools to minimize them, increase coordination of public authorities, reduce unproductive government spending. Analysis of recent research and publications. Problems of formation and implementation of financial strategy in the system of public administration are revealed in many scientific researches of domestic and foreign scientists: J. Keynes, P. Samuelson, J. Stiglitz, S. Kucherenko, L. Levaeva, L. Lysyak, I. Lukyanenko, L. Marmul, V. Makogon, V. Fedosova, I. Chugunova and others. Selection of unexplored parts of the general problem. Increasing volatility of socio-economic dynamics impairs the chances of rapid economic recovery. In this regard, an important task is to develop a public financial strategy aimed at implementing measures to minimize fiscal risks. Problem statement, research goals. The objectives of the study are: to substantiate the role of financial strategy in the system of public administration in conditions of increasing volatility of socio-economic dynamics, the COVID-19 pandemic; to determine the features of the formation and implementation of financial strategy in the system of public administration; to analyze and estimate state budget expenditures. The purpose of the study is to reveal and substantiate approaches to the formation and implementation of financial strategy in the public administration system. Method or methodology of the study. To achieve the goal of the article, a set of general scientific and special methods was used: theoretical generalization and comparison; systemic; comparative analysis; scientific abstraction. Presentation of the main material (results of work). The role of financial strategy in the system of public administration in the conditions of increasing volatility of socio-economic dynamics, pandemic COVID-19 is revealed. Peculiarities of formation and implementation of financial strategy in the system of public administration are determined. The analysis and estimation of state budget expenditures is carried out. Approaches to the formation and implementation of financial strategy in the public administration system are substantiated. Field of application of results. The results of the study can be used in the process of reforming the financial system and its components. Conclusions in accordance with the article. The formation and implementation of a sound public financial strategy is a prerequisite for ensuring the stability of macroeconomic dynamics through the synergy of tools of the components of the public administration system, the development of tools to minimize fiscal risks.

STRATEGIC FINANCIAL MANAGEMENT IN THE ACTIVITIES OF CORPORATIONS

Abstract. The article substantiates the need to transform financial mechanisms in the formation of new approaches to strategic management. The factors influencing the development of strategic activities of corporations and the shortcomings of the implementation of financial strategies in the face of change are identified. The aim of the article is to determine an effective model of strategic financial management of corporations in modern conditions of change to improve the system of strategic management of corporations. The methodological basis for the calculations are the ratings of Global 100, Forbes, NPS benchmarks, Sustainable Ukraine, applied research of the Professional Association of Corporate Governance, the Center for CSR Development.Based on the analysis of development strategies of the world’s sustainable leading corporations, the main strategic directions of their activities have been identified. To determine the importance of the components of strategic financial management of corporations in ensuring sustainable development, the authors analyzed the financial performance of global corporate leaders (Chr. Hansen Holding A / S, Kering SA, Neste Corporation, Ørsted, GlaxoSmithKline plc) and Ukrainian corporate leaders (DP «NAEK “Enerhoatom”», PrAT «Ukrhidroenerho», TOV «Kernel», IP «Koka Kola Beveridzhyz Ukraina Limited», «Karlsberh Ukraina»): market capitalization, profit, customer loyalty / brand reputation. In the conclusions, the authors noted the need to increase the effectiveness of strategic financial management of Ukrainian corporations in modern conditions of change, which requires tracking of external financial risks, constant adjustment of strategic directions of corporations taking into account the concept of sustainable development. Keywords: strategic management, financial management, corporations, sustainable development. JEL Classification G3, O16, G15 Formulas: 1; fig.: 1; tabl.: 2; bibl.: 14.

Financial strategy in the conditions of economic transformations

Relevance of the research topic. In the conditions of economic transformations the financial strategy acts as the important economic lever of influence of public administration bodies on social and economic development of the country. The assessment of the mechanism of financial regulation in Ukraine indicates the need to develop the components of the financial system in conjunction with the transformational economic processes and the development of a sound financial strategy in accordance with the goals and objectives of social development. Formulation of the problem. The importance of developing a financial strategy in the context of economic transformation is due to the need to take into account the impact of internal and external challenges in the financial and economic environment, economic fluctuations due to the spread of the coronavirus pandemic. At the same time, the choice of financial strategy tools should be made taking into account the level of economic development of the country. Analysis of recent research and publications. The issue of developing a financial strategy is quite common in research. These are the works of famous domestic and foreign scientists: J. Keynes, P. Samuelson, J. Stiglitz, W. Tanzi, S. Kucherenko, L. Lysyak, L. Levaeva, I. Lukyanenko, V. Makohon, M. Pasichny, I. Chugunov and others. Selection of unexplored parts of the general problem. The above issues are relevant in connection with the deepening of economic transformation, the adverse impact of the Crown virus pandemic on the financial sector, which requires a number of specific tasks related to the development of financial strategy. Problem statement, research goals. The objectives of the study are: to reveal the role of financial strategy in the regulation of socio-economic processes, to substantiate the peculiarities of the development of the components of the financial system. The purpose of the study is to reveal the directions of financial strategy in the context of economic transformation. Method or methodology of the study. The article uses a set of research methods: a systematic approach, statistical analysis, structuring, analysis, synthesis, etc. Presentation of the main material (results of work). The role of financial strategy in the regulation of socio-economic processes is revealed, the peculiarities of formation and implementation of financial strategy are substantiated. The directions of financial strategy in the conditions of economic transformations are substantiated. Field of application of results. The results of the study can be used in the process of formation and implementation of financial policy of Ukraine, reforming the domestic financial system and its components. Conclusions in accordance with the article. The qualitative level of formation and implementation of financial strategy is determined by the system of financial institutions, the state of their development in a particular country aimed at ensuring economic growth and welfare of citizens. The functional purpose of financial strategy is the result of the evolution of the role and importance of state functions in socio-economic development. Depending on the dynamics of socio-economic processes, the tasks of the financial strategy and the tools for its implementation should be adjusted. The financial strategy in the conditions of economic transformations should be directed on formation of long-term potential of economic growth and increase of well-being of the population taking into account demographic tendencies and indicators of the macroeconomic forecast of social and economic development of the country.

PECULIARITIES OF FUNCTIONING OF MODERN INDUSTRIAL COMPANIES CONSIDERING PROBABILITY OF TERMINATION OF THEIR ACTIVITY

This article highlights theoretical and practical aspects of financial stability of modern domestic and foreign industrial companies with full cycle of extraction and processing of minerals.
 It was detected that nowadays there is no clearly developed system of quantitative and target indicators of management of sustainable and efficient development of modern domestic and foreign industrial companies in conditions of uncertainty, economic instability and aggressive business environment.
 Basing on the usage of world’s experience of usage of key models of multiple discriminatory analysis of assessment of probability of bankruptcy, we have developed relevant recommendations that disclose influence of negative trends on peculiarities of functioning of modern industrial leading companies and probability of termination of their activity in the nearest future.
 Received scientific results and relevant financial and economic calculations must be used in context of making justified management decisions in modern industrial companies concerning provision of their successful functioning and increasing of the efficiency of their business activity with the possibility of strengthening of competitor positions on the external market of iron ore raw materials by means of implementation of programs of financial rehabilitation and anti-crisis measures in order to solve the priority tasks of updating energy-intensive and physically-worn technological complexes.
 Basing on system research, the authors proposed scientific and methodical approach to substantiation of influence of key aspects of functioning of modern industrial domestic and foreign companies on the efficiency of their activity considering implementation of financial strategies of support and further effective usage of mineral deposits in difficult economic conditions.

УПРАВЛІННЯ РИЗИКАМИ ВТРАТИ ВАРТОСТІ СУБ’ЄКТІВ ГОСПОДАРЮВАННЯ У ФОРМУВАННІ ТА РЕАЛІЗАЦІЇ ФІНАНСОВОЇ СТРАТЕГІЇ

The article considers the conceptual provisions for managing the risk of loss of value of economic entities in the formation and implementation of financial strategy. Of particular importance is the ability to increase the value of economic entities in the face of the threat of risk, which involves taking into account the risk component in the development and implementation of financial strategies. Risk of loss of value of economic entities means the probability of losses, additional losses, loss of planned income due to internal and external events, which adversely affects the market value of economic entities. The synergy of the processes of development, implementation of financial strategy and risk management of business entities increases the efficiency and soundness of management decisions. The expediency of using an integrated model based on economic added value and the principles of risk management is substantiated. The sequence of managing the risk of loss of value of economic entities in the following stages is proposed: risk identification, analysis and assessment of risks of loss of value of economic entities, analysis of the impact of risks on the value of economic entities, methods of managing risk of loss of economic entities. The classification is generalized, where the risks are grouped in a single format depending on the impact on the value of economic entities. Considerable attention is paid to the analysis and assessment of the risks of loss of value of economic entities. To analyze the impact of risks, it is recommended to determine the priority of identified value loss risks, which is the basis for building a matrix of probability and consequences and a matrix of decision-making based on the prioritization of cost risks to choose risk management measures. In addition to traditional methods, stress testing is proposed as a tool for planning and controlling the risk of loss of economic entities to develop preventive strategic and tactical measures to mitigate the impact of risks of loss of economic entities in the future. Sensitivity tests, scenario tests, and extreme tests are used to perform stress testing. The use of Schuhart maps is proposed to determine the limits and values of creation indicators of economic entities that correspond to the optimal, preventive and control levels.

ENTERPRISE FINANCIAL STRATEGY FORMATION

The article studies modern approaches to forming the financial strategy of enterprises. In today's economic environment, financial strategy is first and foremost a tool for forming and realizing the goals of financial and economic activity of an enterprise, which is aimed at solving the main inconsistency between the need for financial resources and the possibility of using them. Based on the study of scientific literature, we have defined and detailed the algorithm for forming the financial strategy of the enterprise: analysis of external and external environment of enterprise; development of a system of strategic goals; study of possible variants of the financial strategy of the enterprise (setting a goal, tasks, directions, implementation period); formation of financial strategy; implementation of financial strategy; monitoring of financial strategy (control over execution, comparison of purpose and results); detection of deviations, adjustment of the chosen strategy or activity of the enterprise depending on external and internal factors. Econometric and trend models of financial performance are substantiated to further predict and build an effective financial strategy. The calculations made on the example of the agricultural enterprise make it possible to quantify the degree of influence of the selected factors, changing which can influence the final financial result of an entity's activity. The most modern tool of strategic and operational management that alows to connect the company's financial strategic goals with the business processes and day-to-day operations of staff at each level of management, as well as overseeing the implementation of the overall strategy is the calculation of a balanced scorecard (BSC). Therefore, based on the data of agricultural enterprise, we will calculate a balanced scorecard that contains a financial component. With the help of a balanced scorecard, they form a strategic map. The directions of improvement of the system of analytical and information support for the development of the financial strategy by introducing strategic maps based on a balanced scorecard are identified.

ФІНАНСОВА СТРАТЕГІЯ СТРАХОВОЇ КОМПАНІЇ В УМОВАХ ВПРОВАДЖЕННЯ ЗАКОНОДАВЧИХ ЗМІН РЕГУЛЮВАННЯ УЧАСНИКІВ ФІНАНСОВОГО РИНКУ

В рамках статті досліджуються зміст і основні проблеми формування, реалізації та управління фінансовою стратегією страхової компанії, фінансового стратегічного планування. Позначається місце фінансової стратегії в загальній системі фінансового планування та прогнозування. Розроблено етапи впровадження фінансових стратегій страховими компаніями на основі існуючих розробок для інших суб’єктів господарювання, розкрито сутність та послідовність здійснення кожного з етапів застосування страховою компанією фінансової стратегії. Проведено аналіз адекватності розроблених етапів фінансової стратегії страхових компаній існуючим екзогенним та ендогенним факторам та обґрунтовано застосування саме розроблених стратегічних етапів. Проведено аналіз законодавчих змін стосовно регулювання діяльності учасників небанківського фінансового ринку та встановлені вірогідні результати вказаних змін. Встановлено позитивні та негативні наслідки запровадження змін законодавства стосовно «СПЛІТУ». Виявлено зміну факторів, які впливають на процес здійснення суб'єктами небанківського фінансового ринку своєї діяльності та здійснено її аналіз на основі існуючих статистичних даних. На основі аналізу літературних джерел та існуючого досвіду діяльності страхових компаній досліджено вплив запровадження Закону про «СПЛІТ» на фінансову стратегію страхової компанії. Дається оцінка перспектив та ефективності впровадження заходів щодо змін умов регулювання страхових компаній як учасників небанківського фінансового ринку. Проаналізовано зміну чинників, що впливають на провадження страховою компанією фінансової стратегії у зв’язку з запровадженням закону про «СПЛІТ» та здійснено передбачення майбутньої результативності здійснення страховими компаніями своєї фінансової стратегії в умовах практичного запровадження Закону про "СПЛІТ".

АДМІНІСТРАТИВНІ ВАЖЕЛІ B РЕАЛІЗАЦІЇ ФУНКЦІОНАЛЬНИХ СТРАТЕГІЙ УПРАВЛІННЯ КОНКУРЕНТОСПРОМОЖНІСЮ

Стаття досліджує використання адміністративних важелів в реалізації функціональних стратегій управління конкурентоспроможністю. У зв’язку з необхідністю фінансового забезпечення стратегічного управління конкурентоспроможністю досліджується застосування адміністративних важелів управління при формуванні та реалізації фінансової стратегії. Як один із важелів адміністративного впливу на реалізацію стратегій, запропоновано систему формування фінансової політики за окремими політиками генеральної фінансової стратегії підприємства. На підставі методу декомпозиції та дерева рішень сформовано структуру стратегічних альтернатив реалізації фінансово-інвестиційної стратегії. Для вибору стратегічних альтернатив, визначення стратегічних розривів та оцінки відхилень від заданих цільових маркерів в процесі реалізації фінансової політики запропоновано застосовувати GAP-аналіз, як інструмент управлінського аналізу.

Variation in the estimates of the fixed capital of Russian metallurgy

Much attention is being paid to the valuation of fixed assets in various industries. The situation in metallurgy is of great interest from the viewpoint of the interaction between the financial and the real sector in the Russian economy. This study is focused on the analysis of changes in the stock market valuation of Russian metallurgy fixed assets. Distinctive features of certain steps in the implementation of financial strategy by major corporations are shown. Changes in the metallurgy capitalization level are estimated, which are caused by developments in the world metal market and the domestic stock market. The case is made for adjustment of the Russian metal producers’ financial policies.