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Simon the Incredible Question 2 In order to decide which of these plans is the better approach to the appropriation of the discretionary or strategic funds of the company, you need to do some fundamental financial analysis. Financial analysis considers the sources, flow, and uses of organizational resources in an effort to identify discretionary funds that might be used to implement new programs and strategies. This technique provides a future-oriented perspective on financial requirements and potential sources to meet those needs. The appropriation of strategic or discretionary expenditures identifies feasible options under different fiscal assumptions. An assessment of risk and return on investment must be made before the final option is chosen. The first step is to determine how current fiscal resources are allocated from period to period. A cash flow analysis is a methodology that can help identify sources of discretionary funds and show where potential adjustments must be made. Strategic or discretionary funds are invested in the new programs required to meet the organization's goals and objectives. They are used to purchase new assets, such as equipment, facilities, and inventory; to increase working capital; and to support direct expenses for research and development, marketing, advertising, and promotions. Strategic funds are also used for mergers, acquisitions, and market development. A business model you could use to determine this is a market penetration strategy, that may call for a more intensive investment of funds in the current business.
Approximate Word count = 940
Approximate Pages = 3.8
(250 words per page double spaced)
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