Strategic and Financial Planning

1336 Words5 Pages
Strategic and Financial Planning: Planning is regarded as one of the most important and significant aspects of the success and profitability of a business. Generally, companies and organizations are involved in various methods of planning with the two major types being strategic planning and financial planning. These methods are commonly used by companies because of the different focuses they have and their distinctive nature. Nonetheless, strategic planning and financial planning consist of two major links that have significant impacts on the approaches managers take in the overall planning process. While strategic planning is regarded as the process of determining the direction, objectives, and the achievement of the goals of an organization or business, financial planning is described as the approach towards the management of an organization's finances in methods that contribute to the accomplishment of the business needs. Links between Strategic and Financial Planning: Strategic and financial planning processes involve the definition of objectives, collection and analysis of data, execution of the plan, and evaluation of results. As previously, mentioned, strategic and financial planning have two major links that affect the approaches managers take in the overall planning process. First, after the strategic plan for a business has been developed, the available amount of money determines to a large extent the various options the managers can adopt. Therefore, an
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