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Development of Methodological Approach to Enterprise’s Financial Strategy Based on Comprehensive Evaluation of Its Strategic Potential

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  • N.N. Kosinova
  • M.S. Tolstel
  • S.P. Sazonov
  • K.D. Vaysbeyn

Abstract

The article presents research results of theoretical and methodological basis of financial strategy formation and mechanisms for implementation of Russian industrial enterprises to ensure their strategic development. The necessity of developing the industrial enterprise’s financial strategy based on comprehensive evaluation of its strategic potential. The authors propose a methodological approach to developing a financial strategy based on the analysis of the enterprise’s strategic potential by calculating the integrated index (SPt), which allows not only to analyze and evaluate the influence of factors internal and external environment, financial position and internal capacity of the enterprise, its strategic capabilities and competitiveness, but also to determine the best type of financial strategy. The results of the analysis showed that depending on the value of this indicator identifies five basic levels of strategic potential development (absolute, high, stable, unstable and critical levels) and the most appropriate types of financial strategies: aggressive or accelerated growth, moderate growth, conservative or defensive, crisis or financial stabilization strategy, survival or elimination. Under the proposed methodological approach, the method of comprehensive evaluation of the industrial enterprise’s strategic potential, outlining the priority areas for the implementation of the financial strategy.

Suggested Citation

  • N.N. Kosinova & M.S. Tolstel & S.P. Sazonov & K.D. Vaysbeyn, 2016. "Development of Methodological Approach to Enterprise’s Financial Strategy Based on Comprehensive Evaluation of Its Strategic Potential," European Research Studies Journal, European Research Studies Journal, vol. 0(2), pages 21-33.
    • Handle: RePEc:ers:journl:v:xix:y:2016:i:2:p:21-33
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    References listed on IDEAS

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    1. Eleftherios Thalassinos & Konstantinos Liapis & John Thalassinos, 2014. "The Role of the Rating Companies in the Recent Financial Crisis in the Balkan and Black Sea Area," Contributions to Economics, in: Anastasios Karasavvoglou & Persefoni Polychronidou (ed.), Economic Crisis in Europe and the Balkans, edition 127, pages 79-115, Springer.
    2. Konstantinos Liapis & Eleftherios Thalassinos, 2013. "A Comparative Analysis for the Accounting Reporting of “Employee Benefits†between IFRS and other Accounting Standards: A Case Study for the Biggest Listed Entities in Greece," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(1), pages 91-116.
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