Strategic plan is the most broader and all-inclusive plan -the result of strategic planning activity- setting a blue-print of what is to be achieved-how it is to be achieved and the entire gamut of resources to be employed or utilised and the ways and means of procuring them.So, it follows that financial plans and budgets are a part in the execution of the strategic plans formulated .Financial plans involves allocating and arranging finance to the plans recommended in the strategic planning -to all areas .To this end, budgets are drawn to measure performance in the past as well as in the present- analyse the trends and variances- establishibg reasons or corrective actions- and thus allocating the right amounts of finance for the future- with a sole motive of smooth implmentation of the plans drawn qt the strategies-formation stage. In short, ,financial plans and budgets are an essntial part of a company’s strategic plan and integral for its proper implementation too.2.
Finance is the life-blood of any area of business- none can function without money- infrastructure in the department, salaries of concerned staff- everything involves money.Marketing requires allocation of funds for various marketing strategies to be experimented like sales promotions,sales discounts,travel expenses , and sales commissions. All these require monetary pre-planning- to know how far they can venture out at what level of sales.
Likewise. various shop-floor plans involving finances are drawn-up for operational efficiency Executive management require financial drafts for the administrative expenses they need to encounter for smooth impelmentation of plan activities entrusted to their area- like establishment expenses, empoyee salaries, tax remittances,office suppies and other administrative expenses.As with other areas,finance section also prepares a detailed financial committment plan concerning their area like expenses towards salaries of staff ,their travelling to different locations for system implementation and orientation programmes.Thus, all areas of business act in close coordination with the financial planning department and have their own financial plans and budgets – to act in conformity to the strategised plans- for a common goal – of economy of operations and wealth maximisation.
