Strategic Initiative plan Research Paper Example | Topics and Well Written Essays - 500 words

Strategic Initiative plan - Research Paper Example The launch of a new advertising campaign can be used as a strategic move to spur a sales jump in the short term. Financial planning is another important function that is correlated to strategic planning. A financial plan must be prepared to determine how much investment is needed for any initiatives or strategic projects the company desires to implement. Financial planning involves determining how to obtain the resources needed to finance a project. Some of the sources that can be used to finance a strategic plan include selling common or preferred stocks, bonds, sale of assets, and loans from financial institutions. Strategic planning and financial planning are correlated because the implementation of a strategic plan is dependent of the budget available. A financial planning technique that can be used to predict the future financial outcome of a company is pro-forma financial statements. The master budget is also used to keep track of inflows and outflows of a project. â€Å"The master budget is a summary of companys plans that sets specific targets for sales, production, distribution and f inancing activities† (Accountingformanagement, 2012). Multinational corporations often utilize strategic and financial planning to achieve the goals of the company. The company I work for has utilized strategic planning effectively in the past. Last year the company entered into a strategic marketing alliance with a competitor in order to increase the overall demand for the product. The firm also utilized strategic planning in its human resource function. Due to the increase production demand the firm had to hire an additional 25 employees. A financial planning initiative that the company performed last year was obtaining a $4 million business loan that was used for leasehold improvements, research and development, and to finance an expansion project. Large companies such as