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Season 2 > Episode 20 > To The Lighthouse
Title: To The Lighthouse
Position: Season 2 Episode 20
Air Date: 2009-03-27
Views: 2.478 times
Comments: 0
The inter face of strategic management and financial policy will be clearly understood if we appreciate the fact that the
starting point of an organization is money and the end point of that organization is also money again. Offer of the organization
is only a vehicle that links up the starting point and the end point.No organization can run the existing business and promote
a new expansion project without a suitable internally mobilized financial base or both internally and externally mobilized
financial base.
The success of any business is measured in financial terms.Maximising value to the shareholders is the ultimate objective.For
this to happen, at every stage of its operations including policy-making, the firm should be taking strategic steps with
value-maximization objective.This is the basis of financial policy being linked to strategic management.
The linkage can be clearly seen in respect of many business decisions. For example :
(i)Manner of raising capital as source of finance and capital structure are the most important dimensions
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