Business Strategic Planning Process

Business Strategy

Strategic planning is a management activity and a process that defines the direction and the objective of an organization over the long term (what should the firm do on the long run?) and that defines how should resources should be allocated to pursue this objectives.

Strategic planning refers to develop a plan of action to achieve a particular goal. It includes an evaluation of the organization and the context. It has a focus on the future. It serves as a guide to allocate resources over the long run, but also as a guide to middle manager.

Taken as an ongoing process, it strategic planning can be a key asset of an organization.

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Crude Oil

Crude oil can be classified mainly according to it’s density and according to it’s sulfur content.

The density measures how compact or concentrated the crude oil is. A light crude oil has a lower density and a heavy crude oil has a larger density. Light crude oil has relatively lower costs of extraction and refining. Gasoline and diesel fuel are cheaply produced from light crude oil.

Perpetual Resources

Wind is a natural perpetual resource

What are Perpetual Resources

Perpetual resources are renewable resources that cannot be exhausted, regardless of their rate of use. Perpetual resources are natural resources, because they are provided by nature without human intervention. But not all natural resources are perpetual resources: some natural resources can cease to be renewable if used in excess or unsustainably.

Examples of perpetual resources

- Wind.
- Solar energy.
- Waves and Tides.
- Geothermal Energy.

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Financial Planning

Planning

Financial planning is a process that evaluates the situation of a business in relation to it’s financial resources and needs and determines how to manage the liquid assets, taking the future inflows and outflows of funds into accounts.

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Financial Resources

Dollars

The financial resources of an organization are the set of liquid assets:
- Cash.
- Short term bank deposits.
- Liquid financial investments, like stocks and bonds.

Financial resources are used to carry out the main operations of the business, like buying goods and services, and to carry out long term investments.

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Investment Project

Investing money

What is an investment project

It is the planning of an expenditure of liquid resources, with the objective of taking actions that will lead to future profits.

- An investment project is made before the investment itself.

- An investment implies an expenditure of resources, but it doesn’t necessarily means that those resources are our own resources: a lot of investments are carried out by borrowing money.

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Political Economy

The term “political economy” was used from the 18 century and until the 19 century, as a synonym of what was understood as economics or economic science during that time. Nowadays, there is a discipline called political economy and it’s not a synonym of economy. It is a branch of social sciences that studies the relations between society, state, markets and people. It is the study of the state administration, taking into account economic, political and sociological elements.

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