Business Finance the organization’s direction in response to a changing environment.

It is a
First Semester, School Year 2023-2024 disciplined effort that produces fundamental decisions and actions that shape
Content Standards: and guide what an organization is, who it serves, what it does, and why it does
The learners demonstrate an understanding of the financial planning process, it, with a focus on the future. Effective strategic planning articulates not only
including budget preparation, cash management, and working capital where an organization is going and the actions needed to make progress, but
management . also how it will know if it is successful.
Performance Standards:
The learners will be able to: https://strategymanage.com/resources/strategic-planning-basics/
(1) illustrate the financial planning process (2) prepare budgets such as
Tactical planning is done for setting short term goals and action plan in order
projected collection, sales budget, production budget, income projected
to achieve the long term goals set by the strategic planning in a company. The
statement of comprehensive income, projected of financial position, and
horizon is hence shorter than the strategic plans and this type of planning is
projected cash flow statement , and (3) describe concepts and tools in working
generally executed by independent departments or company functions. Thus
capital management.
the tactical planning is the prerogative of Middle/departmental level managers
Most Essential Learning Competencies
in an organization.
The learners shall be able to:
1. identify the steps in the financial planning process https://www.mbaskool.com/business-concepts/operations-logistics-supply-
2. illustrate the formula and format for the preparation of budgets and chain-terms/15573-tactical-planning.html
projected financial statement
3. explain tools in managing cash, receivables, and inventory Long-term financial plans
- These are a set of goals that lay out the overall direction of the company.
- A long-term financial plan is an integrated strategy that takes into account
Lesson 4 - Identify The Steps In The Financial various departments such as sales, production, marketing, and operations for
Planning Process the purpose of guiding these departments towards strategic goals.
- Those long-term plans consider proposed outlays for fixed assets, research
What I Know? and development activities, marketing and product development actions,
General Instruction: Use one whole sheet of paper for this activity, the “What’s capital structure, and major sources of financing. - Also included would be
More”, the “What I have learned?”, and the Assessment activities. termination of existing projects, product lines, or lines of business; repayment
Specific Instruction: Copy each statement and pick the best answer from the or retirement of outstanding debts; and any planned acquisitions (Gitman &
box: Zutter, 2012).

Short-term financial plans

Contingencies Controlling Planning - Specify short-term financial actions and the anticipated impact of those
Resources Strategic Planning Tactical Planning actions. Part of short term financial plans include setting the sales forecast and
other forms of operating and financial data. This would then translate into
1. ____________ is an important role in everyday life. operating budgets, the cash budget, and pro forma financial statements
2. It is a disciplined effort that produces fundamental decisions and (Gitman & Zutter, 2012).
actions that shape and guide what an organization is, who it serves,
what it does, and why it does it, with a focus on the future. For the purpose of this topic, emphasis will be made on short-term financial
3. _________is the prerogative of Middle/departmental level managers planning.
in an organization.
4. Establish the evaluation system for monitoring and ____________. Long-Term Planning Short Term Planning
5. In planning, ______________ must be considered as well. Persons More participation Top management is still
involved from top involved but there is more
management participation from lower
How do you see yourselves five years from now? level managers
(production, marketing,
Planning plays an important role in everyday life as you have already in personnel, finance and
mind a set of plans for the next five years. Even those who said they are plant facilities) because
not yet sure what they want five years from now will probably still have
an idea of what kind of life they want. They are still in the process of their inputs are crucial at
planning. this stage since they are
the ones who implement
Planning is an important aspect of the firm’s operations because it these plans.
provides road maps for guiding, coordinating, and controlling the firm’s Time
actions to achieve its objectives (Gitman & Zutter, 2012). Period 2 to 10 years 1 year or less
Level of
Detail Less More
Direction of the Everyday functioning of
Management planning is about setting the goals of the organization and Focus company the company
identifying ways on how to achieve them (Borja& Cayanan, 2015).
Table 1: Comparison of Short-Term and Long-Term Planning
(Gitman & Zutter, 2012)
Supposing you will be an owner of successful businesses, how will you be able
to attain your goals?
The planning process:
1. Set goals or objectives. In corporations, long term and short term
If you want to be an owner of a successful business, you should first be able to
objectives are usually identified. These can be seen in the company’s
set up one, or buy into one which would require capital. Hence, you must be
vision and mission statements. The vision statement states where the
able to raise the necessary funds. This new milestone is your short term goal.
company wants to be while the mission statement states the plans on
how to achieve the vision.
Terms Defined:
• Examples of a company’s Vision-Mission statements are as
There are two phases of financial planning. Financial planning starts with long
follows: Jollibee Foods Corporation (JFC) Vision:
term plans which would then translate to short term plans.
To excel in providing great tasti food that meets local
preferences better than anyone; To become one of the three
Strategic vs. Tactical Planning
largest and most profitable restaurant companies in the world by
2020.
Strategic planning is an organizational management activity that is used to
set priorities, focus energy and resources, strengthen operations, ensure
Mission: To serve great tasting food, bringing the joy of eating
that employees and other stakeholders are working toward common goals,
to everyone.
establish agreement around intended outcomes/results, and assess and adjust
 2. Identify Resources. Resources include production capacity, human Additional Activity
resources who will man the operations and financial resources (Borja & Recall the previous school year, outline all your activities to accomplish
Cayanan, 2015). one project in a certain subject. (Be sure to indicate the specific project,
3. Identify goal-related tasks. time, materials and money spent to complete it).
4. Establish responsibility centers for accountability and timeline.
5. Establish the evaluation system for monitoring and controlling. An Answer Key:
expectation of an output will be based on a predetermined criteria.
Other evaluation for awareness events (examples: Proper Waste
Segregation, Anti-Smoking Campaign, Barangay or Community
Cleaning, Dengue Prevention, Community Image Improvement, etc.)
may be number of attendees, feedback, etc. In corporations, the
management must establish a mechanism which will allow plans to be
monitored. This can be done through quantified plans such as budgets
and projected financial statements. The management will then compare
the actual results to the planned budgets and projected financial
statements. Any deviations from the budgets should be investigated.
6. Determine contingency plans
• In planning, contingencies must be considered as well.
• Budgets and projected financial statements are anchored on
assumptions. If these assumptions do not become realities,
management must have alternative plans to minimize the adverse
effects on the company (Borja & Cayanan, 2015).

What’s more?
Specific Instruction: Copy and determine what is described by each
statement, whether it is long-term planning or short-term planning. Write your
answer on the space provided.
1. ______________________ requires involvement of lower level
managers.
2. __________________ involves more participation of the top level
management.
3. ______________________________ is focused on the direction of
the company.
4. Everyday functioning of the company is expected in the
__________________________.
5. In the ______________________, the managers in the production,
marketing, personnel, finance and plant facilities are the ones who
implement the plans.

What Have I Learned?

Specific Instruction: Briefly answer the following essay question (Refer to the
general instruction before you start answering).

1. What is the difference between long term and short term goals?

What I Can Do?

Suppose you are one of the company’s top sales supervisors and is asked to
submit a detailed plan on a Sales Campaign of a certain product, given the
following budget:

Venue rental, P2,000.00; snacks for participants, P50.00 per head; Meals and
snacks of your team (you and your 4 sales force), P200.00 per head; materials
or supplies, P1,000.00.

Present your plan which includes the theme, objectives and financial details on
another one whole sheet of paper.

Assessment:

Specific Instruction: Chronologically arrange the statements below. To

answer, follow the format given and write the statements on your paper.
A. Establish the evaluation system for monitoring and controlling.
B. Identify goal-related tasks.
C. Establish responsibility centers for accountability and timeline.
D. Set goals or objectives.
E. Identify Resources.
F. Determine contingency plans.

1. _______________________________________________.
2. _______________________________________________.
3. _______________________________________________.
4. _______________________________________________.
5. _______________________________________________.
6. _______________________________________________.