Describe the relationship between strategic and financial planning involving.

Fin 370 wk 3 | Business & Finance homework help

The relationship between strategic and financial planning is critical for any business, as the two disciplines must work in tandem to ensure that a company’s vision is properly funded and managed. Strategic planning focuses on creating a set of goals and objectives that will serve as the foundation of a company’s operations and growth. Financial planning then takes this information, such as potential markets or customer groups to target, and creates strategies for how best to allocate resources towards achieving these goals.

This includes decisions surrounding pricing models, product offerings, capital investments etc. In order to ensure a successful business venture over time each discipline should be informed by the other—strategic plans need realistic financial projections while finance teams must understand any non-financial implications associated with their budgeting tasks/activities (i.e., what are some possible risks that may arise when allocating resources in certain ways).

By understanding both sides of the equation from beginning stages startup founders can create better plans long-term which will lead more sustainable success since proper balance should always be struck between short term needs versus longer term vision desired overall by organization itself going forward into future years ahead accordingly.