Problem:
In describing the relationship between strategic planning and financial planning for Barnes and Noble, could you assist with an introduction to the strategic initiative plan below advise how this initiative would impact sales?
Strategic planning and financial planning are part of why Barnes and Nobles is successful. The company has strategically planned a broader scale what works for all parts of the company. The financial side of the company deals with being able to manage the finances for each of the branches within the company. Financial planning is a tool that disperses the financial resources for the different activities that have been established. The financial planners and strategic planners have to work together to be able to ensure the company will make a profit from the project. Barnes and Nobles has to be sure that although the strategic plan looks good for the company, the company will be able to work with the finances to ensure the project is a success. The company has to be sure the strategic team and the financial team has an understanding of the goal and vision of the company while ensuring that the resources and finances are being used in the most efficient manner.
Barnes and Nobles operates 777 stores in all 50 U. S. states and the District of Columbia (Barnes and Nobles, 2009) . In order for Barnes and Nobles to go international the company would need to have setup a strategic plan that has the company showing the financial resources being able to support such a huge chance in growth. The financial team will have to be sure the company is able to support the project whereas not effecting the existing companies. Based on Barnes and Nobles 2008 Annual Report, the company has seen results from the strategic plan in real estate. The company closed small businesses in malls that were not profitable, signed shorter lease, relocated stores when the lease ended to make changes that were needed in the retail world. The strategy paid off for the company. The company sales per square feet leads the industry and the long-range lease obligations are declining as a percentage of sales.