Describe in depth the difference between financial planning and strategic planning.

Strategic Planning Financial Planning

Management level Strategic management Tactical management, with input from

strategic management.

Time Long term Short term

Detail level General and broad based Specific and detailed; made in a structured

manner

Work area Encompasses the entire organization Relates only to the finance department

Source of information Both internal and external Majorly internal

Type of information Usually unquantifiable, like "we shall make Usually quantifiable like " we shall achieve

considerable improvements in order to minimize a sales target of $1,200,500

waste". Just how much is 'considerable'?

Sub division Divisible into plans such as: Divisible into:

Marketing plan Budgets

Financial plan Forecasts

Human resource plan schedules

Production plan operational statements