Tiesha Huskey, Dayna Everson, Kizowanda Staples
Team A will describe the relationship between strategic and financial planning. The will describe a strategic planning initiative for Starbucks and identify an initiative discuss within the organization’s annual report. They will also, describe how the initiative affects Starbucks financial planning, affect costs, and affect sales. Last, Team A will describe the risks associating with the initiative and financial effects that Starbucks may endure. Strategic & Financial Planning
According to Olsen and Eadie (1982, p.4) strategic planning is define as a disciplining effort to produce fundamental decisions and actions that shape and guide what an organization (or other entity) is, what is does, and why it does it. Strategic planning is the “why” that drives Starbucks as a successful corporation. Financial planning is analyzing the investment and financing choices open to the company, projecting the future consequences of current decisions, deciding which alternatives to carry out. As well as measuring subsequent performance against the goals set out in the financial plan (Brealey, Myers, & Marcus, 2003). Strategic planning helps an organization define where it is going so it can succeed. Once they know the “why” it is easier to figure out the “how” by outlining the requirements to get there, including where to place financial resources, how to forecast human resource needs, and where to place investments, otherwise known as financial planning. Financial planning is about allocating limited resources as in equipment, employees, and money over time, to reach the goals that were set within the strategic plan. Doing so includes measuring current performance against past data and trends for the future (Boone, 2009). Identifying Initiative
The strategic planning that was described in Starbucks annual report was eventually having a...