Every major company with an executive committee has a CFO. The CFO plays a big part in the organisation as he is the one that handles the financial aspect of the company. He should have the knowledge about the company’s cash flow, its assets and liabilities, financial records, budgetary control, investments and shares among other things. It may sound simple but before the CFO can report back to the executive committee if the company is making money or losing it, he has to go through the different departments of the company that deal with the finances such as the sales, finance and accounting departments. Depending on the size of the company, the CFO will have varied scope of responsibilities and range of departments which he supervises to make sure that he will be able to give a transparent, precise and truthful report of the company’s financial status. Strategic planning is a process wherein the company will allocate its resources and focus its priority in creating a strategy that will meet the company’s set goals according to its mission and vision or its future plans of evolving or expanding. This might involve change in processes or plans to make the operations of the company more efficient or improve the overall status of the company. The main focus is to make sure that everyone in the company and its stakeholders are focused towards common goals and there are a set of realistic and feasible results or expectations that could lead the company to being a better one. That way, once the strategic plan has been set and implemented, the success of it can be easily evaluated. In this process, the Chief Financial Officer (CFO) of a company plays a big role. As such, the CFO has a big part in the strategic planning of the c... ... middle of paper ... ...net profit of the company. Since Nestlé operates in different parts of the world, I should be aware of the legalities or be able to delegate people who will carefully deal with such things that the company will not be submitted to any discrepancies or legal disputes. This means not only including the taxes and other liabilities in considering the net profit of the company but also being prepared in providing budgets for the employment of legal and financial experts for each region needed. Forecasting is also a vital role of the CFO. If there is an effective way of forecasting over a period of time, it would give better data analysis and comparisons between the annual reports and minimise the differences in the projections for each time period. Budgeting is subjected on in-country products that will reduce too much detailed data and repetitive budget revisions.
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Strategic planning is a critical process for any successful business. It outlines the framework in which the organization operates. Therefore, each area of the process should be carefully considered and developed, with the understanding that some areas are relatively static, whereas other areas change and grow depending upon the environment. By far, the most important part of the strategic planning process is its implementation. If the process is never implemented, its development is just wasted energy.
...astly, executive director is to carefully manage the finance of the organization and follow the spending according to the mission as he/she has the duty of rising funds through successful plans and achievements. (ott,79) “Executive Director’s role is to oversee the day today operations of the organization, as well as to share jointly with the board in mattress critical to the strategic direction and survival of the organization.” (ott, 81)
Strategic planning is defined by intestorwords.com as the process of determining a company’s long-term goals and then identifying the best approach for achieving those goals. But this definition is too broad and does not identify the true advantages of strategic planning for large to small businesses. Strategic planning provides the foundation for the policies, procedures, and strategies for obtaining and using resources to obtain the goals of the organization. Some believe that in today’s rapidly changing environment, strategic planning is becoming more difficult and therefore more obsolete because changes are occurring so fast that plans-even those set for just months into the future-may soon be obsolete. The fact is that with the fast changing environment it is even more important to have strategic planning in every business today.
A strategic planning is a backbone for support the process strategic management. It is also main process in handling the strategic management. Various definition about strategy but generally involves setting the goals and others. Any organization must look at to strategy planning for achieve their vision, mission, values and core strategy. In today, an organization must face many challenges for success in their goals and objectives. They must think carefully for making decision if they want high effectively in the organization. The strategic planner always thinks outside the box for make their organization become success. This strategic planning process affected the effectiveness of organizational. Thompson and Strickland (1989) add that galvanizing
Strategic planning implies establishing in advance what an individual or organization wants to achieve within a specified timeframe and deriving ways on how to achieve that. A strategic plan is basically a course of action that is used to attain desired results. It means anticipating the future and having measures on how to grow into the future. Technology is a macroeconomic factor that is rapidly growing and changing. Technology has had positive effects all over across the globe to business organization and to individuals.
As we take a closer look at reports, managerial accounting use cost of production reports for decision-making. These comprise preparing detailed plans, budgets, forecasts, and performance reports for internal decision makers. Managerial accounting aids managers plan and administrate the company's operations. Accountants prepare budgets to communicate management's goals in financial terms by identifying, measuring, accumulating, analyzing, interpreting, and communicating information. After a budget has been adopted, performance reports compare actual results with the budget. Cost accountants help management keep track of how much it costs a company to make the product, or service (Shpargalka, 1999). Financial accounting incorporates preparing business financial statements mainly for users outside the business. These reports are used by owners, potential owners of a business, and by people who have loaned company money. In addition, stockholders, suppliers, and banks also benefit from the financial reports that are generated (Horngreen, Stratton, & Sundem, 2002).
A strategic plan is a form of document utilized to communicate with an organization on its goals and the actions needed to achieve those particular goals developed during the planning process. Strategic planning sets priorities, strengthens operations and ensures that employees are all working towards the goals of the organization in order to adapt to a changing environment. An effective plan that articulates actions needed, but know if the company will be successful.
Strategic planning consist of four steps starting from defining the company’s mission. When talking about a mission were talking about a certain phrase or slogan for say, that is intended to draw attention to customers and make them want to be even more loyal to the company. For example Walmart says, “Save money. Live Better”. Therefore, Walmart’s mission would be to let people know that they have low prices all day every day, insinuating that their products are affordable for everyone. This is a good mission because it gets the majority of the people in this world to want to go out and save money on their everyday necessities and even luxuries. The second step would be to set certain objectives and goals for the company as well. For example, CVS did use “Health is everything” as their mission and this didn’t just set out for a name it became a goal as well. Sooner or later you must set goals on your mission to understand the level that you need to get to and reach. Another example of a goal that I believe CVS set was to start selling healthier products. In the chapter it says that CVS stopped selling tobacco and other products that
Strategic planning is an organizational process in which it looks towards developing and sustaining success or balance in its ever changing environment.
Accounting has been described as the language of business and every successful CEO knows how important it is for successful business leadership. Strong knowledge in accounting will help every CEO to understand much quicker business problems and opportunities that arise from the analysis of financial documents. A good base in accounting will also allow the CEO to communicate more effectively with the finance staff about company investments. It is never late to master the knowledge in accounting and every CEO should make sure that he or she is up to date with the accounting rules and updates.
Strategic planning has a focus on stabilizing the current environment, and it also support the organization's business plans and goals. Strategic planning helps to implement new projects, new technology, consolidation of data centers, data warehouses, exponential data growth, cost of ownership, and resources available in an organization to assess the future requirements. Strategic planning analyzes the business plan, potential blockage or other issues in the current architecture, processes and their implementation in new initiatives, and processes. Strategic planning helps to formulate the ideas about the key factors that are affecting the present and future development of the organization and the opportunities offered by the environment and the competence of the organization.
Strategic planning is the continuous and systematic process of guiding members of an organization to make decisions about its future, develop the necessary procedures and operations to achieve that future, and determine how success will be achieved.
If asked what strategic planning is one could interpret it as simply a road map that can guide the organization in the right direction. It is very unlikely that an organization would know which direction to take without a sense of direction. Managers are faced every day with decisions that have a major impact on the direction the organization must take, therefore, strategic planning can play an important role in guiding managers in the right direction. In other words strategic planning is a tool that management can use to give them a sense of direction that will guide them in doing a better job and to ensure that all the members of the organization are working toward the same goals