Beyond budgeting, Strategic Management

Assignment Help:

A philosophy that believes traditional or conventional budgeting methods are of little use to management, however beyond budgeting does not believe that budgeting within organisations should be banned altogether. Hope and Fraser argued that the traditional approach to budgeting should be abandoned for the following reasons:

  • The budget process is too rigid and requires conformance to it with not enough flexibility. With the constantly changing business environment, managers need to be having more up to date information to help them make decisions.
  • The budget process is often too bureaucratic, internally focussed and time consuming.

Fixed budgets donot work today. A budget is a too static an instrument and locks managers into past, something they thought last year which it was right.  Managers instead are required to be able to adapt constantly their priorities as well as put their resources where they can create most value for shareholders andcustomers.


Related Discussions:- Beyond budgeting

Explain about opportunity cost pricing, Q. Explain about Opportunity cost p...

Q. Explain about Opportunity cost pricing? Opportunity cost pricing is considered most mathematically correct way of viewing transfer pricing. Reason is that it looks at transf

Research has identified general strategies for overcoming, QUESTION 1 I...

QUESTION 1 Individuals at all levels are prone to resisting change. What are the five main reasons why individuals resist change? QUESTION 2 Research has identified six

Show the features of international and global strategies, Question: (a)...

Question: (a) Firms are always looking to outperform each other; three generic strategies have been identified to allow them not only to attain advantages over competitors b

Strategy, explain strategy as an organisational process

explain strategy as an organisational process

Preliminary investigation - knowledge management technique, Tatra is the wo...

Tatra is the world's third oldest car company, and produced a number of rather advanced streamlined cars during the course of its production run. Because spare parts and manuals ar

sales of y and the price of x, (a)    What is the estimated equation of th...

(a)    What is the estimated equation of the model:                 SALES(Y) = b  + b PRICE(X)? (b)    What sort of relationship exists among SALES OF Y and the PRICE OF X? Do

What are the causes of equipment failures, Question 1: (a) What is vi...

Question 1: (a) What is vibration monitoring? Explain, with examples, how can it be useful in industries. (b) Briefly, explain the sources of contaminants which are comm

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd