Unit 2: Exploring Business Activity Assignment 2 D1

In this task, I will be evaluating how managing resources and controlling budget costs can improve the performance of a business. I will also be exploring the strengths and limitations of managing resources and budgets.

For this task I will be discussing the effects of un-monitoring cost and budgets, and seeing how business could suffer if they are not look after responsibly. I will show disadvantages of not using this method properly.

Critically reflect on the importance of capital budgeting.  Why is this heated subject in many boardrooms? How does capital budgeting promote the financial health of an organization? How will you use the financial techniques you have learned this week to promote the financial health of your organization?

In this report I will evaluate how managing resources and controlling budget costs can improve the performance of a business.

The most crucial part of any firm is to decide about the budget. It includes a proper summary of expected expenditures and available resources for a specific period. One tiny mistake in the budgeting can make any company

In too many organizations the production of results compared to budget is seen as the end of the process. If no action is taken on the basis of management accounts then there is little point in producing them and even less point in wasting management time discussing them.

Knowing about finance can help managers and leadership significantly because it allows them to understand the needs for budgeting. This revolves around income statements, balance sheets, cost of goods and earning statements. I have learned more information on how budgeting, if done correctly, can help reduce debt significantly. Knowing the important functions and goals of financial management can help organization thrive because their leadership and department managers understand the issues that can arise from not knowing the importance of goal settings. Making finance decisions can break or make a company because it allows the organization the ability to be able to analyze the impact of various financial decisions. This includes financial planning, which is put in place to help organizations to overcome obstacles and challenges through strategic financial decision making techuqies. A few factors that should be looked at are business-side focus, funding sources and operating surplus, which will be briefly explained in the paragraphs to come. Managing operational budgets have two main factors that must be looked at to make sure the organization is kept running efficiently and effectively. These factors are known as compound and contents of an operating budget plan. Capital budgeting will be briefly discussed below as well. I will also be reflecting on what I have learned throughout this course by explaining roles of ethics and professional responsibility.

Resources are the assets of the organisation. They include human, physical, financial, intangible and structural resources. In addition, these resources determine how much of operational plan can be implemented and how far the implementation can proceed.

To enable the budgeting process to be effective, Cairns Taxis Limited will have to adopt some basic principles. First, it needs to decide if it requires several budgets to accommodate each department – Administration, Call Centre, RAD Connect (Technical) and Fleet Services. We all know, there is only a finite amount of resources in any organisation, so they need to be appropriately distributed across departments for the greater good of the organisation. Department managers need to work together in harmony and adopt an approach that is for the good of the whole company rather than just their own department. Managerial performance of Cairns Taxis is reflected in the financial statements, the better the organisation is doing the better the

Any successful endeavor requires careful planning and controlling actions. Managers should have clearly communicated objectives against which to measure performance, quickly identify variances and take actions to correct as necessary. The budgeting process creates the organization’s operations master plan and is most effective when it engages employees at all levels of the organization.

This question covers an outline of the key developments in budgeting practice, discussion and analysis of the reasons why budgeting has been subject to considerable criticism, and an explanation of the roles that budgeting and budgets might play in an organization.

Budgets are very important part of business environment. They are considered to be essential key drivers and evaluators for planning and control as well as managerial performance since 1920 (Reka et al., 2014). This report aims to investigate how to promote a cultural framework that is suitable for the modern dynamic business environment. Firstly, it will explain the concept of budgetary control, It will then point out advantages and disadvantages of the current traditional system and how some weaknesses can be addressed by implementing Beyond Budgeting (BB) using practical examples of organisations that have been successful and what were the problems that they have encountered. It will also discuss why some organisations

It is claimed that in many organisations the traditional budgeting remains widespread, and that 99% of European and US companies are using budgets and have no intention of abandoning them, it was also stated that over 60% of those companies claim that they are not highly satisfied with their current budgeting systems and are continuously trying to improve the budgeting process to meet the demands set for management in creating sustainable value (report: Better Budgeting, 2004, p.2-3). From this perspective it is obvious that traditional budgeting approach and budgets in general hold many benefits as well as problems.

Financial budgeting is equally important that is used of resources to specific purposes and to particular accounting period, is really very crucial for management planning and strategic decision making and business controlling processes. There is strong need of resource allocation to provide and support various direct and indirect cost and staff salaries to carry out the work of the institution and to create a good image of the organization in market place (Lousseau & Goodman, 2011).

“Budget” and “Budgeting” are concepts traceable to the bible days, precisely the days of Joseph in Egypt. It was reported that “nothing was given out of the treasure without a written order”. History has it that Joseph budgeted and stored grains which lasted the Egyptians throughout the seven years of famine. Budgets were first introduced in the 1920s as a tool to manage costs and cashflows in large industrial organizations. Johnson (1996) states that it was during the 1960s that companies began to use budgets to dictate what people needed to do. In the 1970s performance improvement was based on meeting financial targets rather than effectiveness companies then faced problems in the 1980s and 1990s when they were not willing to spend money on innovations inorder to stay with the rigid budgets, they were no longer concerned about how customers were being treated, only meeting sales targets became essential. Budgeting in business organizations are formally associated with the advent of industrial