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Business & Strategy

 
Source : http://wp.me
Functional Area : Shareholders Value Creation
Activity:  2 comments  282 views  last activity : 08 25 2010 13:44:39 +0000
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This is my 3rd blog on series of Shareholders Value Creation. Please see Shareholders Value Creation through Strategic Market Positioning & International Expansion also.

Financial Strategy- utilization of capital, sources of funds & distribution to shareholders have significant impact on value creation.

Does your organization use optimal Financial Strategy for value creation? Normally organization gives more emphasis on operational strategy to improve operational efficiencies and altogether ignore systematic approach towards Financial Strategy.

In order to fulfill shareholders expectation & value creation organization needs to properly align Operational & Financial Strategy.

Understand whether the organization is undervalued or overvalued in the market

Please follow my blog URL to see the full article......

http://wp.me/pJPyY-7C

 

 

   

 
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2 comments on "Optimal Finance Strategy for Shareholders Value Creation (SVC-3)"
  Commented by  Jyoti Rath, Sr. Associate, Barclays    | 08 30 2010 11:23:27 +0000
Nice blog.... Deepak, I agree with you on that like financial strategy should keep on changing, its like the strategies are evloving as and when required we should be able to change things, and as Mr. Mathew has rightly pointed out that this is a different ball game altogether and one needs to be proactive.
  Commented by  Mathew Cherian, Research Associate/Analyst, Western Michigan University    | 08 26 2010 15:02:13 +0000
Optimal financial strategy is planing up your eps. Of course one need to adjust the capital structure for optimal cost of capital for achieving planed eps. This is a much involved ball game where one has to be proacive about, the competition, new entrants, regulations and substitutes coming to market. 
Indian companies are far away from implementing such models because their market structure is monopolistic competition. Only purely competitive market structure need such strategies, where one will need r&d and efficient marketing team with government facilitates an environment where products are 'marginaly priced'. Since these are absent we are at the introductory state of business so prolieferation is the direction to go with markets for consumption not well defined for the same reason above. Then financial strategie work well with companies that adopt 'task culture' where as our ites companiea are all 'role based' and other 'club culture'.
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