Question

How are you going to manage your long-term strategic plan with the short-term financial pressures? How do you develop a good strategy vs a bad strategy?

Answer 1

Long Term Strategic Plan- If we want to plan for a long term, we have to note down the following points which will help in the better execution.

1) Time Frame

2) Capacity of Risk taking

3) Goals

We have to diversified the portfolio for Differents aspects. We have to mange three different portfolio for fulfill the short, medium & long term needs.

Short term porfolio is used for the short term financial pressures like Childrens Schooling, purchase of any small furniture items etc.

Medium term portfolio helps for acheiving the 10-15 years goals like buy a luxury house.

Long term Portfolio helps in fulfill thier long trem goals like Retirement benefit, world tour etc.

If we take care for our short term goals then we will focus on our long term goals unless we are distract from that, due to short term financial pressure. We have to spend some money in T-bills, or shorte term notes because of liquidity which will help in short term financial crises.

Good Strategy Vs Bad Strategy- If we want to develop good strategy we have to focus on what we required in the future as per the time frame. We have to manage our portfoilo as per our requirements. If we are not not sure what we need/ requirements in the future you are not able to mange a good strategy, result lower growth.