Strategic Financial Management

Terms Of Reference

This report will look into the options for financing an acquisition of a piece of land to be used for storage. Every source of finance has a cost, I have had to take these costs into account. I will first investigate the different funding options then evaluate which I feel would be the best investment decision.

Procedure

To complete my report I spoke to people within the company I work for, Barclays bank and my Tutor. A lot of the information I have used has come from the internet. I used the internet to research different funding options and their advantages and disadvantages. I found these sources very helpful as I was able to read sections from books and reports.

Importance of making Strategic Decisions

Strategic decisions are important in all business. Companies identify their objectives then look into all the possibilities and evaluate them and make a decision which will help the business achieve the best financial outcome. Strategic decisions can be made many ways depending on the objectives. There is no specific way to make these decisions but if every angle is looked at and the outcomes are compared then most will result in the best financial consequences. The best way for a company to ensure they make the most financially prudent decisions is to have a strategic management system. In our company the managers from each department form the strategic management team. It is an ongoing thing and they meet regularly to review the business. They can then come up with any improvement or investment ideas and analyse the possibilities. To help with this assignment I was able to join them in their meetings. The main tool used in our company for strategic management is SWOT analysis. This help to identify the Strengths, Weaknesses, Opportunities, and Threats, of each possible idea or investment. It is important to use SWOT to look at;

• How we can Use each Strength?

• How