The Ultimate Strategic and Financial Planning Quiz
Organizations of all types use the twin tools of strategic and financial planning to effectively reach their goals. They differ from each other in some very specific ways, but when integrated with each other they can lead to a truly successful organization.
What is the relationship between strategic planning and financial planning?
Strategic planning explains why a company is aimed at a specific goal, and financial planning shows how to reach that goal.
Strategic planning outlines the goals of an organization and financial planning outlines the results of the strategic plan.
Strategic planning shows how to put competitors out of business and financial planning explores the cost-benefit ratio of that action.
What is an example of a strategic planning decision?
what services the company will provide in 10 years
what equipment that company should buy over the next 10 years
how many new employees the company should hire over the next 10 years
What is a piece of information that would affect financial planning?
predictions about the popularity of a given service
public impressions of a corporate name
What are the two parts of a strategic plan?
mission statement and vision statement
evaluation statement and future plan
statement of principles and statement of goals
What criterion is part of the SMART objectives system?
If a mission statement defines the "what" of an organization (i.e. what it does), what does the vision statement define?
What are the building blocks of a financial plan?
What might a company try to determine during a financial projection?
future purchasing trends
likely changes in its corporate vision statement
who its main competitors are
What is an example of something that could reduce a company's profit margins?
a rise in the cost of raw materials it uses
an increase in the advertising budget of a direct competitor
a decrease in the popularity of its main product
Which of the following is the least idealistic?
a financial plan
a vision statement
a mission statement
What will help ensure that a financial plan is most effective?
integrating it early on with the strategic plan
lowering the expectations stated in the strategic plan
making as many financial projections as possible
How can a human resources department use a strategic plan?
using it to evaluate potential new employees
using it to determine how many new employees to hire
using it to justify reduced salaries
What is a major challenge of financial planning?
balancing long-term financial strategies with immediate monetary needs
figuring out how much money the company needs for its operating expenses
making the needs of the strategic plan into an achievable goal
What amount of time can a company's financial projections typically predict with a high degree of accuracy?
six months to one year
three to five years
10 to 20 years
What is the one extra factor that both strategic and financial plans should allow for if they wan the company to succeed?