CA IPCC, Formation Of Functional Strategy, Module 6

Let’s see in this Module, Financial Strategies. Now an organisation are related to several finance and accounting concepts considered to be central to strategy implementation. These finance ccounting concepts are, acquiring capital, right, developing projected financial statements, management or usage of funds, and finally evaluating the worth of a business. Let’s check number one. Acquiring Capital or Sources of Funds, meaning, what number of sources or what number or shares, how many shares, different types of shares, different types of debentures, what should be the amount, what should be the number, what should be the loan, what should be the deposit all that decision has been taken. So successful strategy implementation often requires additional capital. Two basic sources of capital for an organisation are debt and equity. Theoretically an enterprise should have enough debt in its capital structure to boost its return on investment by applying debt to products and projects earning more than the cost of debt. Strategies related to sources of funds are important since they determine how the financial resources will be made available for the implementation of strategies. Organisations have a range of alternatives regarding the sources of funds. While one organisation may rely on external borrowings, another may follow internal financing so it differs from organisation to organisation. Next, Projected Financial Statements or Budgets. Now statement analysis allows an organisation to examine the expected results of various actions and approaches, right, what would be the expected result. A projected Income statement and … To start with Social Marketing, now it aims to increase the acceptability of a social idea, cause or practice among a target group. Example is campaign for prohibition of smoking, right. Second example would be P&G, the collect or they donate, right, for every product that we buy out of which 2 or 3 rupees is donated towards Girl Child Siksha Abhiyan. Isn’t it good, yes? Next we see is Augmented Marketing, now in here it is the provision of additional customer services and benefit built around the core and the actual products that relate to the introduction of hi-tech services like, online computer services, etc. Herein example could be Asian Paints, they give five years warranty on certain paints. Direct Marketing, is a marketing strategy that interacts directly with the consumers asking them to make a direct response. Example through catalogues selling, mail, electronic marketing, Television shopping, etc. Relationship Marketing, it is a process of creating, maintaining and enhancing strong value laden relationships with customers and other stakeholders. It will go a long way in building relationships. Example, Emirates, right, when you fly by Emirates they send a Mercedes, per passenger at your residence, so if it is a family of four, you can even ask for four Mercedes and they provide. And they pick you up from you door, from your home till airport. And again from your destination airport to the hotel. A Mercedes service is provided. Same, British Airways, offers special lounges with showers at 199 airports for frequent fliers. Isn’t it amazing, yes. Next, Services Marketing, It is applying the concepts, tools and techniques of marketing to services. Services is any activity that one party can offer to another that is essentially intangible. Like, Banking, Retailing, Insurance, etc. These days all the banks also send their representative to our home. Person Marketing, now people are also marketed… To Watch More Such Videos Download The Free RobomatePlus App: https://goo.gl/V07g2J Or Visit Website: http://robomateplus.com/