Strategic planning

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Strategic planning is used in organizations to define strategy, direction, and capital allocation decisions. While, working capital management is used in companies to effectively manage a business by monitoring assets and liabilities to ensure that a company is operating efficiently.

Please provide an example, the context and reasoning why a public company of your choosing pursued a publicly announced venture where strategic planning and working capital management played a role.

Sample Solution

Strategic planning is the art of creating specific business strategies, implementing them, and evaluating the results of executing the plan, in regard to a company`s overall long-term goals or desires. Strategic planning can increase the odds sufficiently to yield a handsome payoff. Working capital refers to the capital or cash reserves of a business that is utilized to conduct its day-to-day operations. Working capital management is a strategy that requires monitoring a company`s current assets and liabilities to ensure its efficient operation. Businesses should focus on liquidity rather than profitability in the short run. Therefore, an effective working capital management strategy is vital for a company`s survival.

ffeinated energy drinks (CEDs) are beverages that contain high levels of caffeine, stimulants, and often other substances such as taurine and sugars (NCCIH, 2018). High dose of sugar is used in these drinks in other to make it sweet and also sugar is considered a form of energy boost. Red Bull and Monster are one of the most popular energy drinks among children, adolescents and young adults (Breda, 2014). In advertisements, CEDs are said to increase the level of energy of an individual, focus and also keep them wide awake. This has led to the increase in the consumptions of these drinks. According to a study done in Ontario, about half of adolescents have had an energy at least once in the year. (NCCIH, 2018). Evidence have shown that energy drinks can lead to serious health impacts in children and teenagers. Also, studies have shown a rise in visits to emergency rooms due to energy drink overdose among adolescents (NCCIH, 2018). About a half of adolescents who consume energy drinks experienced unfavourable effects such as unsteadiness of the hands (Pound, 2017). A lot of health professionals have shown concerns over the adverse effects of CEDs most especially among children and adolescents. This is due to the high caffeine content which could lead to cardiovascular and neurological issues. Also, the high level of sugar could lead to obesity and even liver problems (Ibrahim, 2014). This is why some countries have banned energy drinks in the past or considered banning them.

According to studies, Health Canada implemented rules to be followed in a bid to regulate the consumption of caffeinated energy drinks such as limiting the amount of caffeine to “180mg per single serving” and “a concentration of 400mg/ L” (Canadian Paediatric Society, 2017). A ban was also placed on marketing of CEDs to children and adolescents. Mandatory labelling that goes in accordance with the Food and Drugs Act which includes the amount of caffeine from all sources, advisories on mixing beverage with alcohol, Nutrition Fact and ingredient lists among others (Canadian Paediatric Society, 2017).

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