Strategic Initiative

There argon many ways to plan in spite of appearance an organization. The methods that will be discussed today atomic number 18 strategic and pecuniary planning. Each of these planning methods is different; however, the methods do contain some(prenominal) similarities as well. Financial planning is managing your finances over while in such a way that you can play mangle your barter needs. Strategic planning is the process of determining the inadvertence your company will take, the goals you have for the problem and how to achieve what you necessity (Thibodeaux, 2012). Both methods of planning involve imposeing the goal into action. When an organization wants to radiation diagram a strategic plan, the liquidity of the business is extremely important. For instance, allow us say the budget is two million dollars and the business has two options. Option unmatchable would be a make up of 2.5 million, and option two would be a cost of single million. The option t wo costs would be the best option. In turn, fiscal influences strategic planning and strategic influences financial planning. In reference to Lowes, one of the important strategic and plans is to improve financial performance of the company.

In addition, the company would like to increase shareholder wealth/value by returning excess detonator to shareholders through dividends plus the share repurchase program. Lowes intends to machine the plan by reaching $300 sales per modify square foot, increasing EBIT (Earnings Before Interest and Taxes) by 10%, and achieving 18% Return on Invested Capital by 2015 (Lowes Annual Report, 2011) . Lowes long-term strategic plans include ! fashioning Lowes the first choice for home improvements and building a long-term relationship with the customers. To conclude, financial and strategic planning are tightly woven together for organizational success. References Thibodeaux, Wanda. (2012). The Relationship amidst Strategic and Financial Planning. Retrieved from...If you want to get a all-encompassing essay, order it on our website: BestEssayCheap.com

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