Simulation of anti-crises financial strategy on enterprise

Natalia Kornieva

The article is devoted to the study of theoretical and methodological foundations with the help of simulation the anti-crisis financial strategy in the conditions of financial crises and military aggression. General problems in the practical application of financial strategy simulation at the enterprise in the presence of complex and rapidly changing events are identified.

The unstable economic situation in the country and the military situation require enterprises to implement the latest methods and approaches in management. Today, almost all Western European countries have certain elements of controlling, which is characterized as the most effective management system. The main goal of controlling is to improve the management process, oriented in the long term to maximizing profit and maintaining the liquidity and solvency of the enterprise. In modern conditions in Ukraine, controlling is used extremely rarely, this is due to the reluctance and unwillingness of enterprises to change.

Analysis of recent research and publications

Scientific and theoretical aspects of the problem of strategic financial planning, the development of a financial strategy, its content and structural features are reflected in the publications of Ukrainian and foreign authors: Aranchiya V.I., Blanka I.O., Kischak I, Kuznetsova O.A., Ruda R.V., Shcherban O., Wiseman C., Kruger C.J., Ehrhardt M.C., Brigham E.F., Pettit J. and others. However, specialists and researchers in their writings do not focus enough attention on theoretical and applied problems of developing the company's financial strategy, comparing domestic and foreign experience.

Results and Discussions

simulation crises financial strategy

The main purpose of the article is to expand and deepen the theoretical provisions regarding the modeling of the financial strategy of enterprises, as well as the development of practical recommendations for its implementation.

We will use the SPACE analysis method to determine the direction of development of the financial strategy of "Energocomfort" LLC. The results of the score evaluation of the indicators of "Energocomfort" LLC according to key criteria are shown in Table 1.

A strong financial strategy is the basis of the company's effective financial operations and an important factor in ensuring its future competitiveness. The financial strategy of "Energocomfort" LLC is aimed at minimizing the consequences of possible risks and helping to ensure the company's financial stability and solvency.

Source: generated by the author[1,4]

The company needs to take a number of stabilization measures aimed at restoring solvency (liquidity), creditworthiness, and stabilizing its financial condition. Special attention should be paid to the optimal use of available resources, ensuring a stable decrease in the cost of capital used, reducing debt, reducing costs, selling, or leasing unprofitable fixed assets, etc[2].

It is advisable to expand production, capture a significant share of the market, and enter new sales markets. It is necessary to actively attract loans, make real and financial investments in investment-attractive objects, spend significant funds on advertising, increase capital turnover, etc. If the implementation of the expansion strategy is restrained by the action of a complex of internal and external factors, then it is necessary to apply a strategy of gradual development, which involves the orientation of the company towards a gradual increase in the volume of activity, increasing profitability and improving its main financial, production and economic indicators and characteristics, maintaining a stable financial position.

It is necessary to implement the financial strategy in the company by defining goals as part of operational and tactical planning. The methods of financial strategy implementation can be based on a flexible budget (it is planned to determine the cost based on standards), percentage of sales (determined by the amount of profit from expected sales), threshold profitability, cost management [3].

The implementation of the financial strategy requires constant monitoring at the operational and strategic level. Control of the financial strategy is carried out in order to ensure the profitability and liquidity of the company in the short term and to ensure the growth and maintenance of a positive image (or exit from the crisis) in the long term. At the level of operational planning, budgetary control is carried out, weak points are sought and the reasons for deviations from the planned indicators are determined, and motivation is provided for making effective current decisions. As part of strategic planning, control includes the development of alternative strategies based on a critical analysis of changes in internal and external factors, analysis of the effectiveness of innovative investment solutions, etc. [5].

At the stage of implementation of the financial strategy, objective results are compared in order to identify the extent and causes of deviations and implement appropriate corrective decisions. The phases of implementation and adjustment of the financial strategy are carried out in parallel, because by timely recognizing negative trends in the implementation of such a strategy, it is possible to make timely changes and avoid negative results[6].

In addition to the above proposed financial strategies of “Energocomfort” LLC, it is advisable to take several measures to improve the existing corporate management system. The main areas of development are:

1) improvement of the organizational and management structure of enterprises.

2) implementation of international standards and principles of corporate governance into practice.

3) formation of the corporate control system, while the main attention should be paid to the creation of the LLC's internal audit services.

4) development of the Corporate Governance Code.

5) development and implementation of internal systems of corporate management, in particular systems of corporate culture, etc.

Generalized proposals for improving the financial strategy of "Energocomfort" LLC based on the analysis of the company's financial condition and considering domestic and foreign experience are given in the table. 2.

Taking into account these proposals will lead to the fact that the indicators of the financial activity of "Energocomfort" LLC will improve in the future and prevent the occurrence of crisis phenomena.

The implementation of the above proposals will improve the financial results of "Energocomfort" LLC and prevent the emergence of crises. The next step in ensuring the financial stability of the enterprise should be the calculation of costs with the introduction of investment interest (in the case of profit distribution, etc.) using secondary raw materials and waste. In addition, consideration should be given to the possibility of transferring the management of individual divisions through the internal state accounting system to a simplified accounting and reporting system in order to reduce taxation and at the same time avoid increasing costs and tax risks.

Table 2

Operational-resultative matrix for improving the financial strategy of "Energocomfort" LLC