INTRODUCTION
Manufacturing companies, businesses, organizations, etc, needs finance to meet their demands in the economic world. The business activity fully depends on the finance. Finance is the backbone of a business organization. Be it asmall, big or medium scale enterprise, they need finance to help them complete their business activities. Nowadays, all the activities are linkedto and related with the economic activities and very particular to earning profit through any venture or activities. The major goal of any business is to make profit. According to the economics concept of factors of production, rent given to landlord, wage given to labour, interest given to capital and profit given to shareholders or proprietors, a business needs finance to meet all the demands. Therefore finance can be seen as capital, investment, fund etc. Thus, increasing the profit is the major goal of any kind of economic activity.Financeis defined as the art and science of managing money. This eclipse both financial service and financial instruments. Finance is also said to be the supply of money at the time when it is needed. The goal of finance is the obtaining of funds and their effective utilization in business engagements. Finance comes in form of capital, funds, money, and amount.
Financial management is an essential part of overall management. Its Objectives is broadly divided into integral parts; profit maximization and wealth maximization.It is linked with the duties of the financial managers in the business organization. Financial management is said to be concerned with the efficient use of an integral part an economic resource, capital funds. The most widely used and accepted definition of financial management was given by S.C. Kuchaland it states that “Financial Management deals with procurement of funds and their effective utilization in the business”
Financial Management mostly deals with the effective funds management in the business and is practiced by business firms.
Financial Management and Production Management is the functional part of the business, which helps to multiply the money into profit. Profit of the organization hugely depends upon the production performance. Production performance needs finance, because production department requires raw material, machinery, wages, operating expenses etc. These expenditures are decided and estimated by the financial department and while the finance manager assigns the appropriate finance to production department. The financial manager also must be aware of the operational process and finance required for each process of production activities. The financial manager or the department is in charge of allocating the needed finance to the marketing department. Therefore, marketing and financial management have mutual relationship and also depends on each other.
Strategic financial management is the process of carefully evaluating both present and future environments, formulating the organizations objectives, implementing and controlling decisions focused on achieving these objectives in the present and future environments. Strategic financial management is involved in deploying a firm’s internal strengths and weakness to take advantage of its external opportunities and minimize its external threats/problems.
In the world of geo-political, social and economic uncertainty, strategic financial management is in a progressive process of change, which requires a reexamination of the key assumptions that cut across the traditional boundaries of the subject in other to proffer corporate performance.Strategicfinancial management is centered on the belief that an organization, manufacturing companies should without any interruption monitor internal and external events and trends so that well-timed changes can be made as needed. An organization or company must be capable of completely identifying and adapting to change.
The poor management of business organizations in Nigeria has led to the liquidation of several companies and has increased the level of unemployment in Nigeria as lack of strategic financial management and expertise has led to the laying off of workers which has by extension affected the economic development of Nigeria; this is because no economy can thrive with a huge population of unemployed youths. The poor corporate performance of business establishment has led to the poor level of foreign investment into Nigerian companies. Foreign investors watch out for the corporate image of organizations before investing as they want to be sure that they would recoup their investments. This has unfortunately not been the case in West African organizations especially Nigerian thus leading to the low level of foreign investments which has also affected the socio economic development of the country.
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