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Mountkilo plc is a successful hotel chain with hotels located throughout the world. It is somewhat unusual in that it both owns and manages all of its hotels. The Chief Executive believes that its success is to a large extent due to adoption of a Beyond Budgeting approach. He explained that, for example, each hotel manager now produces rolling budgets on a monthly basis that provide a high level of detail on their planned income and expenditure and the managers also have a high level of decision making authority in order to ensure that guests are satisfied.
Required
Problem a) Discuss to what extent it can be argued that Mountkilo has implemented Beyond Budgeting as proposed by Hope and Fraser (2003).
Problem b) Outline the main reasons identified by Libby and Lindsay (2010) that help explain why budgeting is still widely used and briefly discuss whether there are any problem or limitations with their research.
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