Progress in financial and strategic management is fast and financial management gets more and more strategic emphasis. Financial decisions have a big impact on creating added value. This paper, based on analyses of financial statements and ratios, conducted environmental and internal analyses of the selected company as well as conducted in - depth interview with company director and owner, examines the development potential of the company itself. Findings derived from conducted analyses are presented with the aim of selecting key strategic initiatives and noticing interdependence. After the insights gained during the papermaking, development potentials of the company were observed and the recommendation to the selected company is to continue to develop in three strategic directions: in the development of new innovative products, in the development of human resources and in competitiveness increasing. It is evident that current processes in the company, although effective enough, still must be even more competitive, if we look at them in relation to the performance indicators of world competitors. Positive impact of selected strategic directions in the future should be evident on productivity growth, improvement of business profitability indicators and higher return on assets, on capital and on investments, especially in human resource development and further company differentiation. At the end of the paper an assessment is given regarding the acceptable measures that should be taken in order to improve the development potential for each strategic directions at the level of the generic business strategy and functional strategy.