what is the relationship between strategic and financial planning

Expert Solution

Strategic planning refers to planning the direction of the company and the manner in which the objectives of the company will be attained. Financial planning on the other hand refers to planning for the financing of the company in such a way that the business needs can be fulfilled.

The financial plan determines the amount of finances available for achieving the strategic plan of the organization. The strategic plan on the other hand determines how the objectives of the company will be achieved and the finances that will be generated by following different options. Any changes in the strategic plan will affect the amount of funds available for the business and hence the financial plan will be impacted. Similarly any change in financial plans wil change the amount of funds available for implementing the strategic plan. Thus we can say that both strategic and financial planning are intertwined.

jeff jeffy answered 1 year ago

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