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Financial Management is a considerably hard subject. Particularly for students who are not exactly well-versed in their lessons or are prone to putting assignments off till the last moment, the subject could be harder. If ‘Long-term (Strategic) financial plans’ is the topic of your assignment, we believe myhomeworkhelp.com would be of help to you. Before we tell you how and why, our Long-term Financial Plans Homework Help team offers you quite some useful knowledge on the subject.
Strategic Financial Plans and their features.
Long term or strategic financial plans of a company are primarily concerned with identifying goals and objectives and developing the process to achieve the goals. The process improves the company’s efficiency and accountability.
The long term generally means three-to-five years. Strategic Plans are essential for the growth and development of the company. For the strategic planning to be effective, there must be participation of both internal and external stakeholders.
For a strategic planning to be successful, it must possess the following key characteristics:
- It should set its priorities. That would help to adjust the planning according to the changes in needs and resources.
- The plan should be pragmatic, that is to say, the goals should be achievable, measurable and must have a deadline.
- The plan must be flexible so it can adapt suitably when faced with sudden crisis, new opportunities or change in the resources.
- The plan should be compact and all the objectives must be accomplished by the end of it. There should be no scope for failure.
- The plan is the way to reach the destination; it is not the destination. In other words, it is the means; not the end in itself.
- A strategic plan needs to be a living document that covers the end of one year and the beginning of another.
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