Who Uses the Corporate Planning Models and When?
• Financial Planners and Budget Analysts – Using a corporate planning model, financial managers are able to generate pro-forma financial statements and financial ratios. These are the basic tools for budgeting and profit planning. The model will enable them to perform risk analysis and “what if” experiments. • Corporate Planners and Strategists – In the face of uncertainty about the future, management is particularly interested in determining the best possible course of action under given circumstances. The model is used as a tool to help minimize risk and uncertainty and develop the best course of action for the company. For example, using corporate planning models, a firm can examine the effects of proposed mergers and acquisitions with more certainty and estimate the potential profits from new markets with more confidence.
