Financial strategy

At the beginning 70th of the ХХ century base definition by Chandler was modified by K. Andrew who added item authentication of four constituents: market possibility of firm; general competence and resources of firm; own values and aspirations of firm; confirmed obligations to the society. "It is possible to assert that strategy is long-term, high-quality certain direction of development of organization, directed on strengthening of its positions, satisfaction of users and achievement of the put aims. It is developed, to define the course of development of company. Basic task which is decided by strategy of activity is providing of introduction of innovations and changes in organization by allocation of resources, adaptation to the external environment, internal co-ordination and foresight of future changes in activity". Thus, we can assert that financial strategy is the "long-term course of financial policy, counted on a prospect,...foresees the decision of large-scale tasks certain by economic and social strategy". Financial strategy includes "methods and practice of forming of financial resources, their planning and providing of financial firmness of enterprise at the market conditions. Financial strategy engulfs all forms of financial activity: optimization of circulating assets basic and, forming and distribution of profit, money calculations and investment policy". Financial strategy provides accordance of financial and economic possibilities to the market terms; foresees determination of long-term aims of financial activity and choice of the most effective methods of their achievement and is developed, taking into account the risk of non-payments, inflationary vibrations, financial crisis. Strategy of financing as type of activity "includes determination of aims of the use of financial resources and capital, methods of financing, sentinel descriptions, levers and receptions of traffic control of financial resources and capital, determination of "strategic set" (how the structures of specific financial strategies are), and also financial planning and development of the special plans. Financial strategy as the functional foresees also determination of relationships with financial, insurance, credit organizations, shareholders, financial market in general, and also with separate subsections and public servants into organization is all of it shows up in the specific of organization of financial subsystem of management".