UNDERSTANDING FINANCIAL OBJECTIVES

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Presentation transcript:

UNDERSTANDING FINANCIAL OBJECTIVES Aims: To understand 3 types of financial objectives Be able analyse internal and external effects on objectives

Definitions: Financial aim – the general goals of the finance function Financial objectives – the specific targets of the finance function

Corporate objectives In order for a firm to achieve its goals the financial objectives must be consistent with the overall corporate objectives set by the business. There are three types of financial objective: Cash flow targets ROCE targets Shareholders returns

Card sort ! Sort the cards into the appropriate category

PESTLE Using a PESTLE analysis, describe how each external factor may affect ONE of the cash flow targets mentioned previously.

Case Study Pg17 Read the case study about Halfords financial objectives then complete preliminary questions 1 to 5 ready for class discussion.