Is there any relationship between Strategic Financial Planning and Corporate strategies.
Please share your thoughts, comments, ideas and research papers.
thanks
Please provide explicit definitions for what you mean by (1) "strategic financial planning" and (2) "corporate strategies." And to what kind of "relationship" are you referring?
Co-optation (Selznick) as a mechanism for environmental/financial risk hedging. Realized in the form of a diverse set of advisors as: non-executive, non-independent & independent directors.
@shian-Loong Bernard Lew: I have no idea how what you wrote relates to the question Fazal raised. Would you mind elaborating, please?
Dear Warren D. Miller
To my understanding Strategic Planning is a response to the problems of under-financing and policies dilemmas. whereas, Corporate Strategies means Corporate Level Strategies (Vertical Integration, Diversification, Strategic Alliance, New Venture, Business Portfolio, Structure) .
Please extend your help with your ideas, and recent papers if possible
Conceptually, the answer has to be yes. If the financial planning does not create a structure that allows for taking advantage o opportunities when they arise a proactive corporate strategy of searching for opportunities would be a waste of time. Some might argue that the corporate strategy comes first and the finance planning follows.
This can be ignored as the issue really is one of dynamics and if the organisation is not working harmoniously throughout value is destroyed in the sense of opportunity costs.
Well run firms do better!
The impact of financial structure on financial performance has been studied. Can a link be drawn between strategy and financial performance? Do firms that offer greater rewards to CEOs through Warrants etc have better financial performance? How about setting ROA or Tobin's Q as the Dependent variable and including warrants exercised and financial structure as independent variables, plus of course industry and size effect variables as control variables.
As a final thought strategic planning and financial planning both can be modelled as real options. The value of the option depends on the volatility but the hedge negates the performance of the firm.
Dear Fazal Haleem
Greetings,
Please find the attached file about your topic may be useful for you.
Best Regards
@ Faris Alshubiri .
thanks very much. the paper is very relevant. thanks again. Would appreciate if you could share some more if possible.
thanking you
As a synthesis of the relationships I would comment that the Company life and development finds the roots in the economic accounts:
Margins and their economic effectiveness are then related to the "life" expectation cycle of the Company itself.
In the other hand , the death of a Company is usually related to financial problems or most frequently to Treasury ones (cash cycle).
Having in mind these relations the Strategic Planning matters are evidently influenced by both :Financial and Economic factors.
Any development Plan, strategically designed, should aim then for life and minimize the factors leading to death!
Kind regards
Dear Stuart Locke
Thanks very much for your insightful comments and briefing. your last suggestion that "As a final thought strategic planning and financial planning both can be modelled as real options. The value of the option depends on the volatility but the hedge negates the performance of the firm." is much intriguing. could you a little bit elaborate this please.
I mean how can we research the topic, the dependent and independent variables.
Plus. Could you please suggest some trendy research areas that links Strategy with Finance as I am interested in digging into it.
@FAZAL: I recommend that you google the phrase "real options" and start reading beneath the links that come up. Relying on others to take their time to teach you--free-- what you can easily teach yourself using Google is neither cool nor fair to those you ask. Get after it, buddy!
- Badges
- Science topic
- Similar topics
- Correction