Financial Management Plan

In Partial Requirement for the subject Financial Management

December 2023

SALAMANES LUMBER CORPORATION

District 7 Camagong, Nasipit, Agusan del Norte
salamanescorporation@gmail.com / 09551649027
https.www.salamanescorp.com.ph

Allan D. Salamanes Jr. Danilo S. Makiling, LPT, PPL, MM.PSM

Student Instructor
Introduction

Lumber is a vital natural resource that is used in a variety of industries, from construction to
furniture manufacturing. As a result, proper financial management planning is crucial for the
success and sustainability of the lumber industry. This involves carefully managing
expenses, investments, and revenues to ensure the industry can continue to operate
effectively and efficiently while also preserving natural resources for future generations. In
order to maximize profits and minimize negative impacts on the environment, effective
financial management planning is essential. Salamanes Lumber Corporation is a vital natural
resource that is used in a variety of industries, from construction to furniture manufacturing.
As a result, proper financial management planning is crucial for the success and
sustainability of the lumber industry. This involves carefully managing expenses,
investments, and revenues to ensure the industry can continue to operate effectively and
efficiently while also preserving natural resources for future generations. In order to maximize
profits and minimize negative impacts on the environment, effective financial management
planning is essential.

Rules and Responsibility

Allan D. Salamanes - CEO (Chief Excutive Officer)

 Core responsibilities include setting and executing the organization’s strategy, allocating
capital, and building and overseeing the executive team.

Chief Financial Officer

 primary responsibility for making decisions for the company for projects and its finances.

Chief Operating Officer

 Is a senior executive tasked with overseeing the day-to-day administrative and
operational functions of a business.

Employees
 The employer's duty to his employee is to show fair treatment to all employees
regardless of who they are or where they are coming from
 following company policies, working with a team, and contributing to the overall success
and growth of the company.
 Employees are expected to meet certain expectations and standards set by their
employers and may also have opportunities for career advancement and personal
growth within the company.
Shareholders
 Sharer of a company's stock.
 One has a financial stake in the success of the company and may receive a portion of
the profits in the form of dividends.
 Shareholders also have the right to vote on important company decisions and attend
annual shareholder meetings.
 They can also potentially benefit from an increase in the value of the company's stock.

Stakeholders
 Investors, employees, customers, suppliers, and community members.
Information management – Management procedure

Employee Training:
Regular Training Session:
 Implementation of a structured training program for all employees, ensuring continuous
professional development.
 Monthly training session covering financial and farm regulations, professional animal
best practices and technological advancements.

Documentation and Certification

 Maintenance of comprehensive training records for each employee.
 Issuance of certifications upon the successful completion of training programs.

Equipment Maintenance
Recalibration Schedule:
 regularly maintain and recalibrate equipment used in lumber production to ensure
accurate and efficient operations.
 A schedule should be established for routine maintenance and recalibration, taking into
account the frequency of use and manufacturer recommendations.

Adult and Compliance Checks:

 Regular maintenance of equipment is essential for ensuring its proper functioning and
safety.
 ensure that all equipment is up to industry standards and regulations.

Systematic Processes

Documented Procedures:
 Lumber operations typically follow strict and well-documented procedures to ensure
safety, efficiency, and quality control.
 These procedures may include steps for harvesting, transporting, processing, and storing
lumber, as well as guidelines for handling hazardous materials and equipment.

Workflow Optimization:
 Using advanced machinery for cutting and processing lumber.
 Implementing digital tracking systems to monitor inventory and shipments.
 Utilizing data analysis to identify areas for improvement in the workflow

Data Security & Confidentially

Confidentiality Protocols:
 Establishment of clear and clean protocols for handling confidential information.
 Regular training for new employees on the importance of maintaining safety clear data
confidentiality.
Communication Protocol

Internal Communication Channel:

 Establishment of clear channels for internal communication regarding financial reports
and updates.
 Regular team meetings to discuss ongoing projects and address any concern.

Timely Reporting:
 Implementation of a systematic reporting schedule for financial information.
 Timely dissemination of reports to relevant stakeholders.

Technology Infrastructure

Cutting-edge Technology:
 Utilization of cutting-edge technology for efficient data management.
 Regular updates and upgrades to technology infrastructure to insure optimal
performance.

Integration of Systems:
 Integration of financial reporting system for accuracy and reliability.
 Seamless communication between different technological components.

Assurance

Shareholders in the lumber business can be assured of steady profits and a stable market,
as the demand for wood and paper products continues to rise. Additionally, the industry is
moving towards sustainable practices, ensuring long-term viability and growth for the
business. With the increasing focus on environmentally friendly materials, the lumber
industry is well-positioned for success in the future.

Investment Appraisal

Salamanes Lumber corporation, to appraise an investment in the lumber industry, consider

factors such as market demand for wood products, regulatory conditions, competition, and
sustainability practices. Assess the company's financial health, growth potential, and
management team. Additionally, analyze macroeconomic trends, like housing starts and
construction activity, which can impact the lumber industry. Conduct a thorough risk analysis
and evaluate the company's position in the supply chain. It's crucial to understand both the
short-term and long-term prospects of the investment in the context of the lumber market
Develop Budget

Salamanes lumber corporation is embarking on a meticulous process to develop a comprehensive

budget that mirrors its strategic vision and financial goals. This budget encompasses several key
categories, each strategically allocated to address the diverse financial needs of the organization. The
Operational Budget, allocated at Php15,000,000, is dedicated to covering day-to-day operational
expenses, ensuring the seamless functioning of the business. A separate Marketing and Promotion
Budget of PHP 3,000,000 has been earmarked to boost market visibility and attract a wider customer
base through strategic campaigns and branding initiatives. Recognizing the pivotal role of technology,
the Technology and Innovation Budget of PHP 10,000,000 will facilitate investments in advanced
financial technology, equipment upgrades, and innovation, enhancing operational efficiency and
customer experience. Additionally, a Training and Development Budget of PHP 3,500,000
underscores the commitment to employee growth, ensuring skills are aligned with industry trends.
Overall sight and accountability are paramount in budget management. A dedicated Budget Oversight
Committee, led by the Managing Director and Marketing Manager, will diligently monitor budget
utilization and ensure adherence to financial plans. Key performance indicators (KPIs) for each budget
category will be established to align budgetary objectives with broader strategic goals. Transparent
communication with stakeholders, including employees, investors, and clients, will characterize the
budgeting process.

Financial Control

Salamanes corporation implementing these financial control measures, Salamanes Lumber

Corporation can enhance its financial stability, minimize risks, and make informed decisions to
support sustainable growth. Regular monitoring and adjustment of these controls are essential for
ongoing financial health.