Strategic and Financial Planning

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Strategic and Financial Planning “Plans are worthless, but planning is everything” (Eisenhower, 1957). Businesses that fail to plan are very likely to fail and at best will not recognize the full spectrum of profit avenues available to them. Strategic planning helps firms to define how they will make money in the future. Financial planning goes further into depth using the strategic plan as a baseline and helps firms determine their short-term and long-term budgets as well as the possible effectiveness of their plans. The innovative nature of business requires firms to plan out new initiatives to determine costs they will incur, possible profits from sales, and what kind of risk they will encounter. Strategic Planning Initiative – Barnes and Noble and the NOOK Over time technical innovations have changed the way of life for millions. These breakthroughs continue to surface and understanding these technologies and how to properly utilize them is essential in the business world. Barnes and Noble is a business that has embraced these changing times and is proving their ability to keep up. The NOOK is a digital reading device and with access to the Internet it essentially has an almost endless list of all forms of literature. With the release of the NOOK, this single product has allowed Barnes and Noble to take a strong hold in the digital text market. In Barnes and Noble’s annual report it discusses how they will continue to utilize the NOOK and that it has recently become a product that can generate very profitable revenue (Barnes and Noble, 2013). The NOOK is a product that could potentially be viewed as the downfall to bookstores, however Barnes and Noble has discovered how to take a place in the digital market while maintainin... ... middle of paper ... ...s/annual_reports.html Barnes&Noble. (2012). Our Company. Retrieved December 9, 2013, from Barnes&Noble: http://www.barnesandnobleinc.com/our_company/our_company.html De La Merced, M. J. (2013, June 25). Losing Ground on Nook, Barnes & Noble Ceases Its Own Manufacture of Color Versions. (N. Y. Times, Producer) Retrieved December 9, 2013, from DealBook: http://dealbook.nytimes.com/2013/06/25/losing-ground-on-nook-barnes-noble-ceases-its-manufacture-of-color-versions/?_r=1 Eisenhower, D. D. (1957). Public Papers of the Presidents of the United States, Dwight D. Eisenhower, 1957. Government Printing Office. Retrieved December 9, 2013, from http://books.google.com/books/about/Public_Papers_of_the_Presidents_of_the_U.html?id=XkrOHaeghuYC Titman, S., Keown, A. J., & Martin, J. D. (2011). Financial Management Principles and Applications (11th ed.). Boston, MA: Prentice Hall.
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