Discuss the strategic importance oDiscuss the strategic impo

Discuss the strategic importance oDiscuss the strategic importance of financial planning in the early stage of the sports event planning process.f financial planning in the early stage of the sports event planning process.

Solution

Financial planning is strategically very crucial in the early stage of the sports event planning process. At the early stage of the sports event, it enables the organization to set the objectives like maximization of sales, maximization of return on investment or maximization of profits. Besides, the strategic decisions taken by the company needs to be as per the organizational objectives. As far as conducting a sports event is considered, an organization needs to invest a significant amount in the same. These decisions can have a long-term impact on the sustainable business environment of the firm. Here, financial planning enables the organizers to estimate the budget required for the event. It also helps the planners in setting the revenue and expenditure targets of the event. Besides, it helps in establishing several performance indicators that is very helpful in monitoring any deviations in the cost or revenue from the forecasted values. Hence, it can be said that financial planning plays a very crucial role in the early stage of the sports event planning process.