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Formation of financial strategy in the system of providing of competitiveness of enterprises

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  • М. Kupyra
  • М. Kyryshko

Abstract

The formation of financial strategy as a basis for sustainable and competitive development in the long-term requires an algorithm based on current trends proved in the article. Installed, that the financial strategy in the system of providing competitiveness of enterprise is a general plan of lineation financial goals and tasks on a long-term through forming of financial resources in the vectors direction of financial stability. Conducted, the theoretical analysis of the essence filling of financial strategy in the process of forming, realization and correction, with the selection of structural elements of financial strategy in part of effectiveness. The architecture of forming of financial strategy in the system ensuring of competitiveness through a matrix analysis and financial effect. It is proved, that the financial strategy in part to the result operates through the principles and stage of formation and implementation and work to the derived algorithm: Management = capital + assets + investments + cash + profit + risks. Consistency and efficiency of management at each stage create a vector of profitability in the process of elastic financial policy. First, in the system includes a sufficient amount of financial resources, methods of effective use of capital, optimization of structure and rapid response and neutralization of risks on long-term. Offered the matrix of the choice of financial strategy in the part of effective strategic management of the enterprise through synergy and an imbalance with defined level of efficiency of each structural element. Calculated the financial effect of the built-in innovative instruments in the financial strategy, which will only strengthen the competitive position of the enterprise in the market. In fact, the financial strategy is the basis that provide a vector financial foundation for financial and economic development in terms of growing profitability. Its effectiveness is determine the moments when the strategic goals are base on real financial indicators and capabilities of enterprise, clear-cut management system, flexibility and transparency

Suggested Citation

  • М. Kupyra & М. Kyryshko, 2020. "Formation of financial strategy in the system of providing of competitiveness of enterprises," E-Forum Working Papers, Economic Forum, vol. 10(3), pages 104-110, July.
  • Handle: RePEc:cuc:eforum:v:10:y:2020:i:3:p:104-110
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