Question

What is the difference between financial planning and strategic planning? What role does each play? Imagine you are responsible for the strategic planning process and need to form a team. Who will be on your team and why? Explain each person's function. Once your strategic plan is written, what happens next? Make sure you address each question and provide examples.

Answer 1

Q1.difference between the financial planning and Strategic planning:

1. Financial palnning is narrow scope as compared to Strategic Planning which has wide scope.

2. Financial planning helps for economic activity and earn maximum profit to cover its costand provide funds for growth where as Strategic Plannng carries Human resources functions ie. Planning, coordination, communication, organising, directing, controlling etc.

3. Profit maximisation is main objective where as strategicplanning is to maximize owner's economic welfare or wealth Maximisation.

Q2. Roles of financial planning and strategic planning:

Roles of financial planning:

(a). It helps in determine the financial needs of the firm. funds raise foe operational expenses.

(b). It helps in the analysis and interpretation of financial statementto know about the p rofitability, liquidity, ratios, calculate the long term and short term financial position.

(c). It helps in capital budgeting, Working capital management, Dividend policy and controlliing with the help of break even analysis and cost volume profits.

Role of Strategic planning:

(a). It helps in determinants of Bussiness success.

(b). it helps in making overall decision making about the investment, marketing, selling,stakeholders, on the basis of planning, coordination and controlling.

(c). Involves in internal and external environment such as customers, competitors, social, political, technological, government policies, stockholders, etc.

(d). examples: Strategic play an important role in the companies like reliance, tisco, l& T, ITC, HUL etc.

Q3. the strategic planning process is mainly responsible for identify the internal and externalenvironment with the help of following steps:

1. Identify the needs and swot analysis in this one has to identity the issues and market demand and then creat the swot Analysis of the idea generation.

2. identify the objectives; in this one has to identify the Goals, vision, mission, objectives etc.

3. Execute the plan; with the help of swot analysis, objectives of departments, team members, andorganisation.

4. Managae the Performance.

Q4. The team members which i will appoint are:

(a) Appoint HRM specialist:

1.Who are under severe pressure to bring about the prfessionalized changes in the enterprise.SHRM has receivd the great deal of attention in the field og HR .

2. SHRM concerned withthe top level of management and Approach to Human resorces managremnt as a critical startegic decision making.

3. Identify the external opportunities and threats that is important for company's success.

(b). Liason managers: in a team it is very important to remain in contact with the competitors, markets, investors etc. example: it is impossible for organisation to every place and cater clients so to meet the expectation , firm joins hand with liason managers or partners.

(c) Conceptual Skills Managers: A person who spot problem, identify alternatives to correct them and select the best one.

(d) Technological skills: one who posses professional knowledge and is area of expertise,

(e). Human relation skills: One should be interpersonally competent. good listerners, understandthe need of the others, communicate, motivate etc.

Q5 Once the Strategic Plan is made, the next step is to formed the  cooperative strategy: this is again new form of strategy which may included in the team. In these the ^{members of the two or more firms come together to do business on company's behalf.}

^{Example: walmart , the retail giant entered in indian market it selected Bharti groupas its partner. on the other hand Reliance wanted to expand big, it came with British Petroleum.}