Fin370

Strategic Initiative

Strategic Initiative

No matter how small or big an organization is, it certainly uses financial planning as an integral part of its strategic planning (Titman, Keown, & Martin, 2011).

Strategic planning includes decisions that upper management makes to achieve long-term organizational goals. Strategic planning differs from financial planning because of its low-level of detail. Financial planning has a medium-high level of detail. For example, strategic planning may include the general idea of lunching a new product. Financial planning will list in detail all the expenses and revenues that the company will incur by launching the new product.

Microsoft develops and manufactures computing devices that provides products and services mainly through channels such as OEM, online communication, and distributors and resellers. The founder of Microsoft, Bill Gates and Paul Allen, not only uses strategic planning but also takes several strategic initiatives each year. The company plans to expands its global marketing strategies to include countries such as China, Brrazil, India and Africa, which is expected to make up 88% of the global population.(Microsoft, 2011) This research paper will focus on the global marketing initiatives that Microsoft took in 2010-2011. It will also discuss how the initiative affect Microsoft’s financial planning (particularly costs and sales), and finally it will describe the risks associated with the global marketing strategy initiatives.

Strategic Planning

Most large corporations’ strategic plan is to have continued growth; this is not different for Microsoft. Microsoft's primary strategic planning initiative is to grow as company by having investments and appropriations. There are a number of functions needed to achieve this goal. For instance they must meet Operating requirements, debt repayment schedules and share repurchases that are funded by existing cash, cash equivalents, short-term...