Fin 467

Fin467 - Using a current event about Starbucks, we will apply the week objectives to daily business life. The week objectives include working capital management techniques, capital projects, risks associated with capital projects, and decision-making factors with lease versus buy.   Discussing Starbucks adding new locations, improving customer service, new machinery, new flavors, and other initiatives will tie the week objectives together.

Fin 467 - Describe How The Initiative Affects The Organization’s Financial Planning

Hrm324 - Every organization, no matter the size, still needs to implement a financial plan. With a solid financial plan, the organization can tackle initiatives without the organization finding itself in so many debits they cannot recover. Initiatives can also affect a company’s financial planning, just as it affected Starbucks initiatives. Howard Shultz, the CEO of Starbucks stated, Starbucks has initiatives and plans that include increased stores, operating efficiencies, decreases in cost, and even more long time growth for Starbucks (Starbucks, 2011).

Hrm 324 - In order for Starbucks to increase stores, decrease cost and increase operating efficiencies, they had to create a financial plan for this initiative. When a company, such as Starbucks, starts financial planning, it begins with a firm’s working capital to achieve the company’s goals and initiatives. In the process of financial planning, it examines these goals and initiatives and estimates the capital required. Financial planning ensures a proper balance between outflow and inflow of funds. The initiatives and goals of financial planning include measurement of current performance, compare current to past, make projections, outline financial requirements, and work with strategic plans. 

Fin 467