 Formation of A Strategy of Industrial Enterprise Financing With the aim of Profitability IncreaseAlina Korolova
The Russian Academic Journal, 2015, vol. 31, issue 1 Abstract: The paper refers to nature and the necessity of a strategic approach to financing in the industry. The author considers reasons andcharacteristics of an industrial enterprise financial strategy under contemporary complicated economic conditions. A methodologyof selection of the most sufficient financial strategy f or an industrial enterprise in the proc ess of corporate financing is suggested.The independence of industrial enterprises, their economic and legal responsibility regarding activity results forms in terms of theUkrainian economy development under the current economic conditions. The significance of industrial enterprise financial stabilityincreases dramatically. This causes an objective need to determine tendencies of the dynamic formation of their financial positionand prospective financial opportunities. An industrial enterprise financial strategy, as a system of prospective purposes of a financialand economic activity and the choice of the most effective methods and ways of their achievement, focuses on the solution ofthe determined above issues. The formation of a proper strategy of industrial enterprises financing with the aim of the enterpriseprofitability increase is provided by: the possibility of modeling a financial and economic situation; to detect and prognosticate thenecessity of strategic modifications; to apply powerful and reliable instruments and a methodology; to implement the constructedindustrial enterprise financial strategy in order to rec eive planned and desirable activity results.All possible types of the financial and economic strategy of industrial enterprises may be represented in the form of a matrix of afinancial and economic strategy of an enterprise. Strategic analysis within the suggested matrix enables to c onsider the problem indynamics. Moreover, it also makes possible not only to formulate a financial strategy, but also to change it operatively as a result ofdynamic changes of certain targeted sufficient parameters of an industrial enterpri se activity.A strategic directive in the industrial enterprise activity generally stipulates its financial strategy of providing the profitability.Thus, the correlation between them is much stronger than a cause and effect relation, as it may be suggested in the process of cursoryexamination. An industrial enterprise financial strategy is independent to a certain extant compared with an industrial enterprisegeneral strategy. During the creation and implementation of a financial strategy the industrial enterprise is more independent thanduring the process of implementation of its general strategic direc tion of an activity.Also this paper focuses on the development of recommendations concerning the consideration of the determined problem in dynamics.This enables not only to formulate a financial strategy of profit gaining, but also to modify (change) it as a result of the modificationof many important parameters of industrial enterprise func tioning. Keywords: profit, strategy, financial strategy, strategic advantage, financial activity. (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:scn:000raj:364 Access Statistics for this article More articles in The Russian Academic Journal from The Wolfcorner publishing house |
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