Disney There Is a Close Link Between

Disney

There is a close link between financial and strategic planning in that all strategic plans cost money, and generate money. Underlying this simple explanation is the logic that because corporations exist to generate returns for their shareholders, companies must always consider the financial element of their strategies. Consider the strategic initiative at Disney to hire, train and support veterans (Disney, 2012) called Heroes Work Here. This initiative describes a human resources strategy that has been tied into a marketing strategy. Disney hires veterans because they are skilled, disciplined workers but also because the company feels that veterans will add value to the organization. There are added costs to this program above and beyond the normal costs associated with recruitment and selection, but Disney feels that the added value that comes from hiring veterans will justify the cost.

Disney also recognizes that the added value from the strategy can come from a number of different areas. One such area is in marketing. Disney earns goodwill with both the military community and the general public by hiring more veterans and publicizing this fact. Ultimately, Disney hopes that this goodwill translates into increased sales, and increased visits to its theme parks.

Thibodeaux (2012) highlights some of the links between financial planning and strategic planning. She notes that financial planning supports strategic planning for businesses. At Disney, the company may not need to earmark funds specifically for a human resources initiative, but it might need to ensure that if it wants to build a new theme park in China or India that it has access to several billion dollars over the course of many years. Financial models allow the company to estimate its future financing needs, and the company can set its strategy based on those needs.

The strategic plan is considered to be a roadmap for the business (Ibid). The financial plan is a route for how the business can achieve its objectives. Any company has a number of options for how to finance different strategies, and those choices will have an impact on the firm's ability to achieve its objectives. Disney can finance its military veteran recruitment initiative with cash, but for larger projects Disney may wish to consider debt financing as an option, or an equity issue. For financing projects outside of the U.S., there are additional considerations to be taken into account as well.