The optimal success of any business strategy typically depends on a few key factors. These factors essentially include the alignment of the company with the external environment, a realistic internal view of its various core competencies, careful implementation and monitoring of the organization, as well as the relevant sustainable competitive advantages. Arnon Dror Agency largely talks about how finance has a key role to play in business monitoring, decision making, strategic planning, as well as necessary formulation and implementation. While currently a Senior Operations Executive Consultant at Janus Technologies, Arnon Drorwas the former VP of Finance at US Channel Group’s Xerox Technology Business as well.
Financial metrics has been considered as one of the key indicators for the performance of business organizations for long. Arnon Dror CT largely lays emphasis on the role of finance in establishing, as well as monitoring specifically strategic goals of a business on an integrated and coordinated basis. This is done with the aim of enabling a company to operate efficiently and effectively. Arnon Dror has been involved with the industry of finance for quite a period of time, and subsequently has created an exceptional track record in managing, restructuring and integrating businesses to surpass its performance and revenue targets. Arnon Dror Agency talks about how the financial goals and metrics of an organization are typically established on the basis of benchmarking the “best-in-industry” concept. Here are some of the importance facets of finance and strategy planning in case of a business organization:
- Free cash flow: The cash flow of an organization is ideally used to measure the financial soundness of the firm. It basically reflects how the financial resources of an organization are being utilized in order to generate additional cash for the purpose of any future investments. The free cash flow ideally represents the new ash flow available at a company, subsequent to deducting the working capital increases and investments from the operating cash flow of the organization. It is important that companies take this metric into consideration while trying to follow-through for implemented projects, as well as anticipating substantial capital expenditures in the near future.
- Economic Value-Added: This basically aids the company management in making effective and timely decisions with the aim of expanding businesses that increase the overall economic value of the organization. This facet also deals with the various corrective actions that are required to be implemented at a company to make sure of its good financial health. The economic value-added is generally calculated by deducting the operating capital expenses from the net income, and it tends to play a major role in improving the resource allocation process of the company.
- Asset Management: This element basically involves the efficient management of current assets, as well as and current liabilities turnovers of an organization for the enhanced management of its conversion cycle.
According to Arnon Dror CT, the element of finance forms an integral part of the strategy planning and its implementation for a business.