Selecting financial strategies 0.0 / 5 ? Business StudiesFinancial PlanningA2/A-levelAQA Created by: Hayleyginny2345Created on: 08-11-13 18:24 A financial strategy medium - long term plan designed to achieve the objectives of the financial function or department of a business 1 of 15 Ways of raising finance Borrowing, Selling shares and other sources of finance 2 of 15 Borrowing Borrow funds from banks. = simple, regular interest payments 3 of 15 Selling shares Managers may choose to sell shares to a business = slower and expensive 4 of 15 Other sources of finance Hold current assets in other companies that can be sold to raise funds for investment in B.S 5 of 15 Profit centers An area of business that controls itself seperately from the larger organisation 6 of 15 Why could this be a good financial strategy More accurate decision making, monitor budgets, delegate power = imporve motivtion 7 of 15 Cost minimisation Reduce costs throughout the whole of the business while still trying to maintain a high quality standard 8 of 15 Ways to minimise costs... Reduce labour costs, Relocation and using technology 9 of 15 Reducing labour costs Wage and salary expenses are large chunks of a business 10 of 15 Relocation Move to eastern europe or Asia = reduce overheads and labour costs 11 of 15 Technology Reduce staff numbers 12 of 15 Capital expenditure Spending on new non-current assets - property, machinery or vehicles 13 of 15 Investing in machinery = Reduce labour costs, initial costs are high = training costs 14 of 15 Investment in property Able trading o be as efficient as possible to support their corporate image 15 of 15
HRM - BUSS3 - chapter 16 business - understanding HR objectives and strategies - human resource strategies 0.0 / 5
Evaluate 3 strategies that a company such as The GBB group could use to deal with conflicting stakeholder objectives. [20] 0.0 / 5
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