Management

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.

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.

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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