Abstract
A company's strategy plan is a method of achieving the goal of maximizing shareholder wealth. This strategic plan requires both long-term and short-term financial planning that brings together forecasts of the company's sales with financing and investment decision-making. Budgets, such as the cash budget and the production budget, are used to manage the information used in this planning, whereas performance measures, such as the balanced scorecard and economic value added, are used to evaluate progress toward the strategic goals. Keywords: strategy; strategic plan; investment strategy; budgeting; comparative advantage; competitive advantage; budget; operational budgeting; long-run planning; long-term planning; regression analysis; sensitivity analysis; simulation analysis; flexible budget; pro forma balance sheet; pro forma income statement; analysis of accounts method; percent-of-sales method; financial model; value-based metrics; economic value added measures; economic profit; market value added; balanced scorecard; key performance indicators (KPIs); value creation
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