Determination of Financial Strategy of Selected Company and its Importance for Other Business Development - Case Study

The current business practice shows that the key factor of business success is the originally created and implemented corporate and business strategy. However, the importance of strategy is underestimated. The consequence is the fact that partial functional strategies in business practice do not often exist. The paper deals with the selected functional strategy - financial strategy with the aim to analyze its importance in business development. The paper focuses on the theoretical framework with emphasis on financial strategy and other related aspects. The literature review discovered that this research field is not deeply developed. Based on the theoretical background, the case study of selected company is elaborated. The main aim of this case study is to analyze and evaluate the financial strategy of the selected company and its importance in further business development. The main research methods of this paper are: case study, the selected methods of financial analysis, personal interview, the selected methods of descriptive statistics and modelling and simulating of financial strategy with the help of Vensim program. The results of the case study discovered that financial strategy of selected company focuses on conservative strategy with emphasis on lower profitability and higher liquidity. This financial strategy does not correspond with corporate investment strategy into the further development of the company. It could be stated the current financial strategy of the selected company does not reflect the whole corporate strategy and goes against other business development. It is recommended to change the financial strategy on aggressive approach with higher profitability that could follow the current corporate investment strategy.