Home  Journals  Finance and Credit  45(621) - 2014 December

Comprehensive assessment of competitive position as a key step of financial strategy

Available online: 1 December 2014

Subject Heading: Financial management

JEL Classification: 

Pages: 29-41

The article defines a need for a comprehensive assessment of competitive position of a company based on the integration of presented models of financial strategy. The authors propose and substantiate a three-dimensional model, which reflects the correlation of elements of a financial strategy in the sphere of investment and financial solutions, and a strategy of dividend payment. The authors have evaluated the competitive position of a number of national companies operating in chemical and oil and gas sectors of economy, using the models. Nowadays, the instruments of financial management should be the methods of managing a competitive position within the framework of financial strategy building rather than the methods of management of current financial results. The objective of the research is to identify regularities between implementing a financial strategy of a joint stock company, both in general and broken down by elements, and taking a highly competitive position, with a possibility to generalize the results (within the selected sector of economy). The authors implement the objective by searching and proving the applicability of tools that are necessary to optimize the process of developing financial strategy of a company. An integrated assessment of company competitiveness should be aligned with the stages of control over financial strategy implementation. It should simulate appropriate changes in the strategy based on competitors' positions and capitalization growth demanded by owners. There is a confirmation of the statement that the more the financial strategy of a company complies with recommendations of presented strategic tools, the higher its competitive position, and therefore, its market value. The analysis of financial strategy of companies operating in chemical and oil and gas sectors highlighted a number of practical and methodological peculiarities. The authors consider in detail the matrix maps, which reveal mutual influence of the elements of a financial strategy and make strategic decisions more consistent and sound. This is possible to achieve through structuring targets within the econometric analysis or testing modern concepts of corporate financial management, which the authors have done as part of this study.

Keywords: financial strategy, model, higher school, financial management, Franshon-Roman, matrix, optimal, structure, capital, competitive position, comprehensive assessment, chemical, petrochemical, sector

References:

1. Blank I.A. Finansovaya strategiya predpriyatiya [Financial strategy of an enterprise]. Kiev, El'ga, Nika-Tsentr Publ., 2008, 720 p.
2. Brearley R., Meyers S. Printsipy korporativnykh finansov [Principles of Corporate Finance]. Moscow, Olimp-Biznes Publ., 2008, 1012 p.
3. Brigham E., Gapenski L. Finansovyi menedzhment: polnyi kurs [Financial Management: the Complete Course]. St. Petersburg, School of Economics Publ., 1997, vol. 1, 497 p.
4. Volkov D.L. Teoriya tsennostno-orientirovannogo menedzhmenta: finansovyi i bukhgalterskii aspekty [The theory of value-based management: the financial and accounting aspects]. St. Petersburg, SPSU Publ., 2008, 320 p.
5. Vorob'ev A.V. Otechestvennye metodologicheskie podkhody k razrabotke finansovoi strategii predpriyatiya (genezis i analiz) [Domestic methodological approaches to development of a financial strategy of an enterprise (genesis and analysis)]. Finansy i kredit – Finance and credit, 2011, no. 16, pp. 20–27.
6. Damodaran Aswath. Investitsionnaya otsenka. Instrumenty i tekhnika otsenki lyubykh aktivov [Investment Valuation: Tools and Techniques for Any Asset]. Moscow, Al'pina Biznes Buks Publ., 2008, 1342 p.
7. Lobanova E.N. Korporativnyi finansovyi menedzhment [Corporate Financial Management]. Moscow, Higher School of Finance and Management RANEPA Publ., 2011, 734 p.
8. Petrov A.N. Strategicheskii menedzhment: uchebnik dlya vuzov [Strategic Management: a textbook]. St. Petersburg, Piter Publ., 2008, 496 p.
9. Pochitaev A.Yu. Osobennosti prakticheskogo primeneniya finansovykh modelei otsenki konkurentnoi pozitsii kompanii [Specifics of practical application of financial models of a company’s competitive position valuation]. Vestnik ekonomiki, prava i sotsiologii – Journal of economics, law and social sciences, 2012, no. 2, pp. 64–67.
10. Stoyanova E.S. Finansovyi menedzhment: teoriya i praktika [Financial management: theory and practice]. Moscow, Perspektiva Publ., 2010, 656 p.

View all articles of issue

ISSN 2311-8709 (Online)
ISSN 2071-4688 (Print)

Journal current issue

Vol. 30, Iss. 3 March 2024

Archive