1. Prior to entering this discussion, review Chapters 8 and 9 in the
Abraham’s textbook several required web-based resources on the subject
for this week. Strategic planning and operational planning are both
important in the overall planning process, but are distinctly different.
Succinctly define each and summarize the key differences between them.
Who are the typical participants in each process? How does an
organization benefit from operational planning? Provide an example of a
company which has been successful in implementing Strategic and
Operational planning and a company that has failed in implementing both. 2. Southwest AirlinesPrior to beginning this Interactive Assignment, review the sections
of Chapters 5, 8, and 9 in the Abraham’s textbook on Assessing the
Company and Operational and Budget Planning. Also read the online
articles Analyze Investments Quickly With Ratios (Links to an external site.)Links to an external site. (Elmerraji, 2017) and What Is an Annualized Budget? (Links to an external site.)Links to an external site. (Ashe-Edmunds, n.d.).Using the same publicly traded company you used in the Environmental Scanning Interactive Assignment, and this downloadable Operating Budget Template.,
research the company online by accessing the Mergent Ashford University
Library online database which offers company financials, descriptions,
history, property, subsidiaries, officers and directors. Also, access
the Business Insights: Global Ashford University Library online database
which offers information on global companies, and industries. It
includes SWOT reports, market share data, financial reports, case
studies, business news, and company comparison charts. (View the Mergent tipsheet
and Business Insights tipsheet documents for suggested methods of
searching Ashford University Library databases generally as well as
specific advice for searching these two databases). You can always
conduct research using credible online sources of corporate financial
information, just be sure that wherever you obtain financial information
that you cite your source.For this Interactive Assignment, you are going to look at the
financial statements for the company you selected and, using the
previous quarter’s financial data, interpret the data and propose a
budget for the next Quarter based on your current and previous analysis
of company performance. Complete the budget template using this Operating Budget Template:List your current sales, discounts and allowances, net sales, margins, operating costs, and earning before and after taxes.Choose a minimum of two financial ratios (below) and include in your analysis.Prepare the next quarter’s budget based on your interpretation of past data.Include at least two of the following types of relevant financial ratios in your analysis. Review the online article Analyze Investments Quickly With Ratios (Links to an external site.)Links to an external site. (Elmerraji, 2017) and Chapter 5 in the Abraham’s textbook to help with this portion of the budget:Profitability RatioLiquidity RatioSolvency RatioValuation RatioLeverage Ratio initial Post: In your initial post, provide a brief
description of your company and provide a summary of your Operating
Budget along with a rationale that supports suggested budgetary changes.
Attach your Operating Budget Template to your initial post for review
by your instructor and your peers.