Financial Planning PDF

FINANCIAL PLANNING By Dr. M.Abd Elnaby THE PLANNING PROCESS Top Mgt. Strategic Mid-Mgt. Tactical First-Line Mgt. Operational PERFORMANCE MANAGEMENT  PLANNING "It is the conceptual activity based on predetermined thinking whi...

FINANCIAL PLANNING By Dr. M.Abd Elnaby THE PLANNING PROCESS Top Mgt. Strategic Mid-Mgt. Tactical First-Line Mgt. Operational PERFORMANCE MANAGEMENT  PLANNING "It is the conceptual activity based on predetermined thinking which enables the manager to establish his goals and suggest the best alternative to attain these goals"  Mission All kinds of organizations have a mission because the mission is the purpose which justifies the existence of the organization. Objectives Objectives are the ends toward which activity is aimed.  Strategies The determination of the basic – long term objectives of an enterprise and the adoption of courses of action and allocation of resources necessary to achieve these goals. Policies Policies serve as a guide thinking and decision making and ensure the decision will be consistent with, and contributed to, an objective.  Procedures Procedures are plan that establish handling future activities and they are guides to action rather than to thinking Rules Rules spell out specific required action or non-action - Planning is the first and most important managerial function since other functions stem (comes) from it. It gains managers initiative over events and becoming proactive instead of being reactive Rules can be seen as a type of standing plans  Importance of Planning 1) It helps predict future problems so as to be ready to face them 2) Planning aids management to utilize resources efficiently 3) It focuses the Attention on necessary efforts required to achieve goals 4) It gains managers initiative over events and becoming proactive instead of being reactive 5) Planning enables the firm to respond to environmental events 6) Without planning it is difficult to perform controlling What are the steps which should be followed in order to set up a plan?  Establish Goals A Goal is end result to be attained or desirable achievements There are a number of characteristics should exist for the good goals as summarized in the word (S M A R T): S Specific not general M Measurable A Agreed upon by all people R Realistic, compatible with resources T Bound to a time frame THANK YOU