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Question - Explain this 4 point and related to Top Glove company in Malaysia.
The traditional budgeting process has been criticized its incapability in meeting a company's demand of current competitive business environment.
The criticisms include:
- Encouraging rigid and incremental way of budgeting format.
- Excluding key drivers of shareholders' values.
- Having dysfunctional behaviour in achieving the budget.
- Not aligned with company's strategic objectives.
Required -
(a) Explain these criticisms from the above in company selected in question 1.
(b) Explain how modern budgeting can be used to respond the above criticisms so as to improve the budgeting process.
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