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Strategic Financial Planning in the System of Managing a Trading Company

Author

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  • Sytnyk Ganna V.

    (Kyiv National University of Trade and Economy)

Abstract

The article justifies increase of the role of strategic financial planning in trading companies under modern economic conditions, which form new challenges for traditional management systems. On the basis of analysis of existing approaches to organisation of strategic financial planning the article formulates author's own vision of its content and structure of a strategic financial plan on the basis of integration of concepts of the balanced scorecard (BSC) and economic value added (EVA), which, according to the author, could be taken as a basis of organisation of strategic financial planning in a trading company of any format and provides a number of advantages, namely: allows integration of a strategic financial plan and the process of its development into a uniform strategic process in a company; converts it into an effective tool of finance management (it formalises and specifies the financial strategy, informs about its main directions and brings its provisions to executors, allows formation of a system of personnel motivation, facilitates realisation of a strategic financial plan); integration of BSC and EVA concepts facilitates increase of effectiveness of company activity, since it integrates main provisions of strategic and value-oriented management. In this arrangement the EVA concept, apart from financial components, is supplemented with the prospect of "competence", within the framework of which goals, indicators and programmes of improvement of business processes are substantiated and the balanced scorecard gets a clear orientation at formation of value; the specified approach could be effectively realised upon the principles of process management.

Suggested Citation

  • Sytnyk Ganna V., 2013. "Strategic Financial Planning in the System of Managing a Trading Company," Business Inform, RESEARCH CENTRE FOR INDUSTRIAL DEVELOPMENT PROBLEMS of NAS (KHARKIV, UKRAINE), Kharkiv National University of Economics, issue 9, pages 359-369.
    • Handle: RePEc:idp:bizinf:y:2013:i:9:p:359_369
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