FINANCIAL MANAGEMENT

Title and author

Financial management as a tool for achieving stable firm growth by Saksonova, Svetlana and Savina, Svetlana

Name, Volume, Issue (and page numbers), and Year of Journal

Economics & Business. Aug2016, Vol. 29 Issue 1, p49-55. 7p.

The article addresses the purpose of financial management in a firm as it is a significant tool that assists in achieving stability of the firm in the long term.  It is important as it focuses to the relevant problems that a firm faces (Saksonova, & Savina, 2016). This is because poor financial management results to the firm’s inability to stabilize its self and grow in value. Through correctly chosen strategies a firm is able to enhance growth despite the constantly changing economic environment.

The article addresses the issue of firm stability and growth through a financial strategy that aims at increasing the value, marketing strategy by focusing on increasing the market share in operation, client and services, personnel management and through technology management strategy. The targets of the strategies are achieved through quantifying major aspects. A better approach directed to the firm is to focus on maximizing the value of the firm which includes various elements such as stable dividends, maximization of firm output and increasing the shareholder's value (Saksonova, & Savina, 2016).

From the article, it is true to say that financial management innovation approach aims at increasing the value of the firm rather than increasing the profits only. This has been facilitated by the modern markets economies that are as a result of efficient financial management (Saksonova, & Savina, 2016). The analysis of the firm has helped in the discovery of the firm problems that relates to its value. The analysis has provided a practice that can be adopted by the firm to enhance proper valuation.

The interesting part in the article is that financial management plays a critical role in the firm’s value. It has addressed how problems threatening the firm growth and value and how they should are dealt with by providing suggestions on how to resolve the problems (Saksonova, & Savina, 2016). The article also identifies the key problems of financial management and how to account for the firm's value and discounted cash flow.

 

 

 

 

 

 

 

 

 

 

Reference

Saksonova, S., & Savina, S. (2016). Financial Management as a Tool for Achieving Stable Firm Growth. Economics & Business, 29(1), 49-55. doi:10.1515/eb-2016-0021