Corporate Advisory in business is the process of offering business advices to organizations such as companies, and other businesses on functions like Corporate Social Responsibility, Strategic Financial management, mergers and acquisitions and business restructuring to help the business achieve its objectives more efficiently and in the most effective way.
Strategic Financial Management involves planning for the long term financial business prospects which may include how to achieve long term plans in the business objectively such as production plans, personnel plans and the marketing and sales plans.
Corporate Advisory is playing the following roles in shaping the business world for 2016;
- It is enabling the business shareholders to have an independent way of discussing and solving significant issues in businesses- this is possible because through the established advisory corporate boards, the business owners are able to question and be answered on how they can eliminate the problems hindering the business from achieving its goals for example elimination of vague and unachievable goals and concentrating only on achievable ones.
- It is creating the sense of Corporate Social Responsibility to the business management- it is expounding to the management on why they need to be socially responsible to the societal needs and the importance of creating a positive business image.
- It is encouraging exploration of more business ideas through intensive research- Corporate advisory boards are advising business people on various ways through which they can improve the business performance, this is making them develop interests on learning more on how to achieve this more effectively and in an efficient manner which is leading to better ideas through research.
- It is providing an easy forum for monitoring the business performance- the business shareholders are now using the established advisory Corporate Boards to monitor the performances of business executives and directors to reduce conflicting interests among the shareholders and the business directors.
- It is making directors more responsible and avoid misusing business resources in an unprofitable projects as they are now aware they are being monitored. This is because the shareholders now rely on the corporate advisory groups who act as watchdogs on the directors’ undertakings in the business.
- It is providing an easy way of analyzing and implementing strategic management- this is because the organizations are only concentrating on the viable long term financial goals which are within the business objectives and are avoiding working on the less important goals.
In conclusion, based on the above points, businesses will have to rely hugely on Corporate Advisory if they have to succeed in 2016 and the years to come.
