Financial competitiveness: a fundamental component of business competitiveness

Abstract

It is undeniable that the conceptual discussion around the issue of competitiveness has fallen short in one of its key components. From the competitiveness systemic perspective, very little has been attempted to develop theoretical constructs that explain the differences between competitive business organizations. In this regard, this article gathers the systemic perspective of competitiveness integrating it into the company everydayness. This is to say, it raises the need to develop the company as a complex organism composed of subsystems that have specific characteristics according to the pursued objectives and the relations derived from it. The analysis specifically focuses on what has been called “Financial Subsystemâ€. In order to develop this study the need to integrate methodologies proper to corporate financing such as the indicator of economic value added - EVA - the analysis of financial statements indicators is shown, using the methodology of Altman discriminant analysis, valuation of cash flow and the quantitative and qualitative valuation of the information accounting and financial system. If it is understood that the above mentioned tools not only allow to evaluate the financial management of a company but also become a benchmark to formulate and execute financial strategies, this last ones must have as a framework the humanistic perspective of administration and management and a model for a complex reality.