The Synergy of Strategic Finance and VBM: Navigating the Complex Landscape of Modern Business Management

International Journal of Economics and Management Studies

© 2023 by SSRG - IJEMS Journal

Volume 10 Issue 8

Year of Publication : 2023

Authors : Parth A Kulkarni

10.14445/23939125/IJEMS-V10I8P102

How to Cite?

Parth A Kulkarni, "The Synergy of Strategic Finance and VBM: Navigating the Complex Landscape of Modern Business Management," SSRG International Journal of Economics and Management Studies, vol. 10,  no. 8, pp. 7-12, 2023. Crossref, https://doi.org/10.14445/23939125/IJEMS-V10I8P102

Abstract:

Value-Based Management (VBM) has emerged as a vital approach to aligning organizational activities with long-term value creation in today's rapidly changing business landscape. This review paper explores the importance of VBM in navigating the complexities of modern business environments, emphasizing the role of Financial Planning and Analysis (FP&A) as a strategic partner in shaping value-driven strategies. By delving into the integration of finance with VBM, the paper uncovers how financial insights and analytics can foster a cohesive approach to value creation, aligning financial decisions with broader organizational goals and stakeholder interests. The paper also presents an analysis of real-world case studies showcasing successful applications of VBM. These case studies illuminate the practicalities of implementing VBM, offering tangible insights into its effectiveness. Furthermore, the paper provides a comprehensive examination of the benefits and challenges of VBM, highlighting the opportunities for growth, innovation, and sustainability, as well as the potential hurdles in technological adaptation, cross-functional collaboration, and cultural alignment. In synthesizing these themes, the paper encapsulates the multifaceted relationship between FP&A and VBM, offering a nuanced perspective that contributes to a deeper understanding of value-based management in contemporary business management.

Keywords:

Financial planning & analysis, Value Based Management, Value creation, Strategic decision-making, Organizational alignment.

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