Case Analysis- Read The Three Articles And Write A Short Opinion Statement

From the readings that were given , I believe that a company would be violate off abandoning budgets . Instead of stating budget lays which the employees should make or break to receive target rewards corporations should be more centre on objectives . With the changing market conditions , corporations should be flexible in answering to customer demands and in forming strategies to achieve greater profitsOne separate of budgeting is time . Computing financial projections and the corresponding details is rattling meticulous . Managers will be veered away from their supposed tasks of creating strategies to remedy br performance . They will be taking so much time in thinking how much a target they mass achieve so getting that target reward would be easyWhen employees atomic number 18 focused on certain(a) budget targets , they will do anything to reach that even if it office manipulating data . This is evident in some companies especially if comer or exceeding a target corresponds to a fiscal reward , commendation or promotion . Jensen (2001 ,. 96 ) mentioned an transnational heavy-equipment manufacturer as an example . To hit their quarterly revenue targets , they shipped off unfinished products to Netherlands . As it came out , the assembling of the goods and the supererogatory labor required only caused the company more currency to spend than the profit that they were expectingHaving budget expectations excessively limits the flexibility of a company to conform to present market conditions . Market conditions ar always changing .

By focusing on objectives alternatively than on achieving numbers managers can work on forming strategies to better sell a particular product , for example . They can adjust to what presently a customer hopes - to convince him in purchasing establish on his current need or interest Companies , especially those producing a number of products , can also gauge the supply that they need to release to the market based on demand trends . This will prevent losses from unsold products or surplus . When objectives have been met , bigger profits are sure to reflectReferencesJensen , M .C (2001 . Corporate Budgeting is Broken - Let s bring forth It Harvard Business Review , 95-101Hope , J Fraser , R (2003 . Tool kit : Who Needs Budgets ? Harvard Business Review , 108-115Weber , J Linder , S (2005 . Budgeting , advance Budgeting , or Beyond Budgeting . Cost Management , 19 (2 , 20-27...If you want to get a full essay, order it on our website: Orderessay

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