Financial managers of huge corporations are aimed at increasing the value of their shareholders. This goal requires managers to combine paying dividends to shareholders as well as increasing the long term sustainability and profitability of a company. In many cases financial managers of such companies are ready to do everything to maximize their investments and projects so that the position of their company could improve in recent years (Forbes.com, 2016).
A great example of the corporate finance in real life could be presented by Japanese automobile company Mazda. The company has introduced its most innovative project of renewed Mazda MX-5 Miata. It has good characteristics but it is not the best among others. The company is emphasizing that is vitally important to feel comfortable in the car. That is why Mazda has improved not only the design of the car but its technical characteristics.
Today is the time of new innovations and more and more automobile manufacturing companies present their brand-new driverless cars’ concepts. Some people believe that it is the future of the automobile industry but some scientists disagree, highlighting the fact that driving process is not only about getting from one point to another, it is also about the satisfaction from the driving process (Muller, 2016). In this situation Mazda is the company that focuses mostly on this aspect of comfortable and interesting driving. As it may be noticed from the history of the company it had periods of financial crises, nevertheless the company is in a win with its business strategies.
Corporate finance management facilitates the company’s communication with its shareholders as well as it allows to build up a strong development plan. Mazda’s example of corporate finance has shown that it is not always necessary to follow the high technologies while the key to success is the client satisfaction with the product.
Muller, J. (2016). A Driverless Car? Mazda Says Why Take All The Fun Out of It?. Forbes.com. Retrieved 4 February 2016, from http://www.forbes.com/sites/joannmuller/2016/01/04/a-driverless-car-mazda-says-why-take-all-the-fun-out-of-it/#62c4b1713473
Forbes,. (2016). Turning Bean Counters Into Difference-Makers: How Corporate Finance Is Changing With The Times. Retrieved 4 February 2016, from http://www.forbes.com/sites/oracle/2015/03/13/how-corporate-finance-is-changing-with-the-times/#88b9a6d43eca
Forbes.com,. (2016). The CEO's Guide To Corporate Finance. Retrieved 4 February 2016, from http://www.forbes.com/2010/11/15/ceo-cfo-corporate-finance-guide-leadership-managing-mckinsey.html