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How do you define strategic planning?

What are some differences between strategic and

financial planning? What financial problems might an organization encounter when
implementing a strategic plan?
o Strategic planning is a companies way of allocating resourcess to pursue a particular
course of action. Some differences in strategic and financial planning are the financial
resources and the avenues of availability to the company. Some financial problems an
organization might face when implementing a stragecis plan is lack of finances. A
company might have a stragtegic course of action but might not be able to finance the

What information is needed to prepare a cash budget? What is the relationship between an
operating and a cash budget? Why is it important for an organization to prepare a cash
o It is important for an organizaton to prepare a cash budget because it serves as a
benchmark for analyzing the firms operations over time and gives the organization a goal.
The organization needs a financial plan, historical data, sales and expense data and
logical place to start in regards to revenue and cost.

What is the break-even point? What decisions does the break-even point help an
organization make? What actions might an underperforming organization take to reach the
break-even point?
o The break-even point is the zero-balance of what the organiztion puts out in reference to
what it spends. The break-even point helps an organization make decisions such as how
much it can spend and what it can spend its money on. Decisions that can impact an
underperforming organizations break-even point include reducing expenses and
increasing performance to achieve maximum profit

How do you explain the use of time value of money (TVM) in business? What considerations
are made when calculating TVM? How may you use TVM to create your own, or someone
elses, retirement plan?
o Time is money is explained in relation of early savings and compound interest. The
earlier you start saving the more mone you can save in the future because of compound
interest. Considerations to make when calculating TVM are the amount of money you
put in, the interest of money gained and if that % is going to be compounded. You can
use TVM to create your own retirement by calculating and end goal to where youd like to
be for retirement and calculate and percentatge of how you would like to get there. What
type of investments you make are crucial to how much you get in the end result are
imparative also.