Financial Management, 12th Edition by Pearson

CHAPTER 26

Financial Planning and Strategy

LEARNING OBJECTIVES

• Explain the difference between financial forecasting and financial planning.
• Explain the components of a financial plan.
• Discuss the technique of financial forecasting.
• Develop an approach to construct a financial model.
• Examine the features and implications of sustainable growth model.
• Show the linkage between strategic planning and planning.

INTRODUCTION

A firm should be managed effectively and efficiently. This implies that the firm should be able to achieve its objectives by minimizing the use of resources. Thus, managing implies coordination and control of the efforts of the firm in achieving the organizational objectives. The process of managing is facilitated when management ...