Fin 370 Week 2 Assignment

Strategic Initiative Paper

Evelyn S Zelman, Tammy Rourke, Tracy Deiters, Rita Grisby

FIN/370

October17, 2013

Christopher Hernandez

How initiative affects Wal-Mart’s financial planning

Financial planning is referred to as the process of estimating future financing needs and identifying how previous funds were financed and for what purposes they were spent (Titman, Keown , & Martin 2011). Through financial planning and control, the management of a company can evaluate if the existing patterns of financing and spending funds are in line with the overall goals of the company (Titman, Keown, AJ & Martin 2011). The timing as well as the amount of required funds can be determined through financial planning techniques (Titman, Keown AJ & Martin, 2011). Depending on the kind of resources are available depends on what the policies chosen by the company. This company looks at an aggressive approach or an approach that has to deal with bankrupt policies (Titman, Keown, AJ & Martin, 2011). This budget will be formed by looking at the figures and their economic predictions of that quarterly basis, how many people are employed by Wal-Mart and how the fiscal policies affect the store (Titman, Keown AJ & Martin 2011). The costs of utilities and energy costs also health care costs determine how Wal-Mart will give a specific initiative to its planning phase (Titman, Keown AJ &Martin, 2011). Such mythology, as percent-of –sales method, which is External required financing= 70% ($200,000)-30% ($200,000)-3% ($1,000,000) = $140,000-$60,000-$30,000=$50,000 .Therefore, Wal-Mart has to arrange for external financing of $50,000 if it plans to increase sales by $200,000. Without the external financing, Wal-Mart can not buy more stock, acquire other assets, and meet their sale target (Titman, Keown AJ & Martin, 2011). The target audience also must be taken into consideration if the initiative is to succeed financially (Titman, Keown, AJ & Martin, 2011). The initiative of Wal-Mart is...