Final answer:
The claim that formal strategic planning is only tied to financial performance is false. It also covers non-financial objectives like customer satisfaction, market share, and environmental sustainability, among others, contributing to a firm's overall success and competitiveness.
Step-by-step explanation:
The statement that formal strategic planning contributes only to financial performance and not to non-financial objectives of the firm is false. Strategic planning is a comprehensive process that indeed focuses on enhancing the overall financial performance by setting quantifiable financial goals. However, it also encompasses non-financial objectives, which include improving customer satisfaction, market share, environmental sustainability, social responsibility, employee engagement and development, product quality, brand recognition, and innovation. These non-financial aspects are crucial for the long-term success and competitiveness of the firm. Therefore, strategic planning addresses both financial and non-financial goals to guide the company towards a well-rounded and sustainable future.