Enterprise Planning and Forecasting.
Business enterprises are profit-oriented organizations aimed at minimizing the input while maximizing outputs. For the organizations to be able to achieve this state, planning, therefore, becomes a crucial aspect. It is proper planning that will ensure the achievement of the targeted goals of a specific company/ institution. Proper planning entails aspects of strategic planning, financial planning, operational planning, and forecasting.
Strategic planning, in an organization, in the long term plan that sets priorities. These set priorities direct how resources will be allocated and where most of the focused energy should be directed to achieve the set targets. This ensures that both the stakeholders and the employees pull towards a common goal (Annarelli & Nonino, 17). Adjustments are a vital aspect in the strategic planning should the organization want to achieve the best. On the other hand, financial planning acts like the organizations’ general manager. Financial planning is what detects how all the processes of the organization will be carried out. It is what gives a framing to financial policies related to investment, procurement, and funds administration (Baker & Ricciardi, 2014).
Operational planning and financial forecasting go hand in hand. Operational plans give a clear road map of what tasks are to run a business and cover. The program directs the future of the organization (Stefanoska & Soklevski, 12). In the same regard, financial forecasting determines the company’s future financial outcome. It predicts the expenses and the income of the company generally over to the next year. Statistical tools such as regression and time series analysis are critical in forecasting as they help peek into the future. In the process of doing this, upon implementation, there could be a noticeable forecast error. This is noticed upon determining the between the rea and the predicted values.
Work Cited.
Stefanovska, L., & Soklevski, T. (2014). Benefits of Using Balanced Scorecard in Strategic and Operational Planning. Universal Journal of Management, 2(4), 165-171.
Annarelli, A., & Nonino, F. (2016). Strategic and operational management of organizational resilience: Current state of research and future directions. Omega, 62, 1-18.
Baker, H. K., & Ricciardi, V. (2014). Investor behavior: The psychology of financial planning and investing. John Wiley & Sons.