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Differences between strategic and financial planning

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1. What are the differences between strategic and financial planning?

What financial problems might an organization encounter when implementing their strategic plan?

Strategic planning is essentially a tool for systematizing the present based on future projections.

It tells an organization what its status is and where it would like to be in the future.

Strategic planning is basically the process of choosing what the future of the organization should be, and the strategies that need to be implemented so as to make that future occur.

Strategic planning distinguishes that resources, opportunities and threats are not necessarily permanent; it is driven by prospective.

Financial planning, on the other hand, is a based on the overall strategic plan.

Financial planning centers on allocating resources effectively and proficiently, and involves long-term planning, and makes sure that funds are directed toward the objectives of a strategic plan which considers the future outlooks.

It is necessary to make sure that resource requirement and funds are planned out in advance so as to avoid future limitations.

The primary financial problem while implementing a strategic plan is resource constraints as a result of a lack of funds or finance.

The strategic plan may need to be suspended as a result of a lack of funds or financial resources.???

Reference no: EM13924102

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