Describe a strategic planning initiative for your selected organization and identify a strategic initiative discussed in the organizations annual report?

Answer 1

The strategic planning initiatives of Wal-Mart have an immense impact on their financial planning. While the company puts an enormous importance on pricing their products at low prices, it makes their additional operations efficient in a way to capitalize on the overall profits (Wal-Mart, 2009). Their pricing strategies have made them the market leader within the United States. The strategic planning initiatives of Wal-Mart have an effect on both the prices as well as their overall sales.

Wal-Mart has sector expansion initiatives in which they open new stores, expand their existing stores, and alter the locations of their lower-performing stores. These moderations require a large amount of capital. In order to lower the high cost load for the continuance of their stores, these initiatives have proven to be highly effective on an overall basis (Wal-Mart, 2009). Although it may not create short-term profits, these initiatives have proven track records to bring in additional long-term capital.

However, Wal-Mart's new initiatives have also made an impact on the overall sales of the company. Based on their most recent annual report, they saw an increase of nearly 9% in their net sales when compared to the previous year (Wal-Mart, 2009). They also added nearly $30 billion to their annual sales (Wal-Mart, 2009). This is certainly a display of the impact their strategic initiatives had on their financial initiatives. Wal-Mart's sales have not only risen within the United States; it has occurred on a global scale. Their growth last year only shows that their strategic planning has certainly affected their financial planning in that their specific sales objectives need to be modified on a regular basis.

Even though Wal-Mart's strategic initiatives have a high-quality effect on their net sales, there are still some business risks that come along with these initiatives. Most of these potential risks faced by Wal-Mart are financially related. These financial risks are tied to overall market risks include repeated alterations and modifications in interest rates and the rates of the exchange of foreign currency. Additional imitations and related risks that are related to their financial planning pertain to insurance. This includes, but is not limited to: vehicle liability, worker's compensation, and overall liability. Other risks associated with Wal-Mart's financial planning involve credit risks. The credit risks have the ability to be modified with the assistance of regular operating procedures.

As a result of these risks, Wal-Mart has undergone numerous financial impacts within their business operation. They are susceptible to currency devaluation because of interest, and they do not have the ability to recognize any future market modifications as a result of the current market crisis. As you can see, the risks that are associated with their initiatives have a large financial impact on the company.