Question Aaron Finance & Economics

What are strategic management and financial performance factors and how do they differ?

What are strategic management and financial performance factors and how do they differ?

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Answer Internal Staff

The term “factors” in the context of the question is a little ambiguous. There are internal and external factors that can impact a business. However, in general terms it can be interpreted as the following:

Factors that can impact the financial performance of a company include but are not limited to the following: capital structure (financial leverage and equity), dividends, firm size, et cetera.

Factors that can influence changes in strategic management include but are not limited to the following: structural transformations such as mergers and acquisitions, competition, laws, technology, et cetera.

As these are two separate subjects in academia, the difference in these can be easily seen as they affect different areas of a business: Finance and the Management of a business.