Describe the relationship between strategic and financial planning.

The two are interconnected. The process of strategic planning involves setting up goals and objectives that align with an organization’s mission, vision, and values. This involves deciding what resources will be utilized and in which way to accomplish these goals. In contrast, financial planning involves forecasting revenue and expenditures to see if the goals are achievable within budget restrictions.

Both processes are interrelated, as financial plans and strategic plans are closely linked. This is to make sure that future resources can be allocated while meeting current needs. Organizations cannot effectively implement strategies without adequate financial analyses as they may not have enough money at any time. This could result in under-investment, resulting in a reduction in output and quality.

It is important that firms also develop contingency planning for any unforeseeable circumstances, which can arise from unexpected external factors such as macroeconomics. This requires a careful balance between the short-term gains and more long-term strategy. These considerations all require a close integration of two components to ensure management is able to make operations profitable and viable over long periods.

In conclusion, strategic & financial planning work together support each other ensuring firm has necessary means pursue ambition while simultaneously maintaining safety nets times emergencies arise thereby preserving stability business operations going forward.