Success Strategies for Coperate and Business Finance

In concluding these various definitions in the literature. Newman and Logan (1976) say strategy is concerned with where an organization should be headed in the future. It concentrates on the major moves to be taken by the particular company at the present stage in her development. In essence, a strategy is a chosen course of action for pursuing an objective. For a business organization "strategic decisions are primarily concerned with external rather than internal problems of the firms and specifically with the selection of the product mix which the firm will produce and the markets to which it will sell", (Ansoff, 1984). In other words, a business firm which chooses to pursue the profit objective will have to contend with the strategies for achieving it through what products it should produce and sell (product mix) and where it intends to sell them (markets) in the light of the intentions of other competing firms Operating Strategy This is concerned with row functional levels contribute to corporate and business strategies. For examples, the finance functionary formulate strategies to achieve the new dividend policy identified at the corporate strategy level. Similarly, a foreign currency exposure strategy may be developed to reduce the risk of loss through currency movements.Business organization usually set for itself financial goals which include the maximization of profits - the primary goal. In this context, maximization of profits means maximization of the wealth of the company, which translates into the maximization of the wealth of the shareholders. Significantly, maximization of profits is quite different from making of profits. For every profit maximization, there is profit making, but profit making does not necessarily accommodate profit maximization. Profit maximization generally means a situation whereby business organisation's profit earning pattern has linear relationship/curve from year to year. When the profit pattern of such organization is graphed for a number of years, the curve slops upward