Describe any three features of information needed for strategic planning.

CPA-Quantitative-Analysis-Section-4 BLOCK RELEASE

Features of information needed for strategic planning:
1. Information has a greater orientation to external data
Strategic plans are concerned primarily with positioning the organization in the optimum position in the environment to meet targets and objectives, while allowing the organization to develop dynamically in response to changes in that environment. This information required for strategic plans tends to come from a higher proportion of externally generated data.
2. Information is usually presented in a highly summarized form in the form of graphs, charts and tables.
3. The information covers all aspects of the organization i.e. it encompasses all the departments of the organization.
4. The information relates to medium to long-term (months to years).
5. The information has high levels of uncertainty since the focusing is on a long-term.
6. The accuracy (in the sense of paying attention to little details) of the information is less critical to decisions at this level.
7. The data incorporates higher proportion of subjective valuations.
8. The performance focus of the information is on predictive rather than historical performance.

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