Business strategy budgets և implementations. availability of resources

To simplify this article, Strategy և Planning will be used in the same sense. Budgets and goals are interrelated, as is the implementation of a business strategy. The implementation of the business strategy is considered the final stage of the business strategy (prior to monitoring և control). It can be defined as the transformation of a strategy into organizational action through organizational structure և development, resource planning կառավարման strategic change management. ” The various components of its implementation have been successfully integrated.

Organizational structure of the definition ը The design aspect is related to the use of the organization’s human resources, mobilization և organization, which must be met through the use of the organization. և The design aspect is that most employers can leave the company if they are not motivated or given the right position to work for the organization, in other words, unused.

The next aspect of implementing a business strategy, resource planning, determines what resources should be created and which should be removed. It is about identifying the resources needed, how those resources will be deployed, and creating the competencies needed to successfully implement control strategies. The configuration of these resources depends on the protection of unique resources, ie when the strategy depends on the specificity of certain resources, such as legal remedies, resource pooling (ie, mix of resources to create competence), business process re-engineering (ie creating dynamic improvement, performance). by learning և by constantly improving to improve abilities. One of the many problems is the conflict that arises between the departments over the distribution of funds, especially when money is involved in the implementation of business strategy.

Strategic change management is the next component in the implementation phase. This change involves a gradual change that is simply based on the organization’s skills, routine և beliefs to make the change effective, և a transformation change that requires the organization to change its paradigm over time.

When building a strategic management system, the budgeting process should be linked to the business strategy. Therefore, at the beginning of the budgeting process, the budget objectives և organizational goals for the next budgeting period are set by the budget directors whose primary task is to create a core budget that combines the business units և the operating period budgets. From the budgets of the period, the budget director builds the main budget. It is then adjusted to calculate the shareholders’ estimated value, which in turn serves as a test of the corporate strategy. This is the point at which strategic analysis can be tested. If strategic plans do not create shareholder value, they are taken through a strategy change cycle. When the main budget և, consequently, the strategic blueprints are completed, it is planned to use the budget ացնել to implement the strategy.

Achieving a sufficient budget is one of the main requirements for the effective implementation of business strategy. The question is, where do budgets and business strategies interact?

There is ample evidence of business strategy և plan failure, despite reasonable analysis. Someone has said that good planning can significantly reduce the risk of business failure.

The plan is to forecast future activities. It usually translates to a budget if it is quantified. Thus, for the coming period, the budget refers in monetary terms. It is defined as a financial or quantitative report prepared prior to a specific reporting period that contains the plans and policies to be implemented during that period.

In general, budgets are prepared in a systematic, systematic manner, usually following most organizations (although procedures may vary depending on the size, type, and leadership style of organizations).

Details report. Those responsible for budgeting should be aware of the company’s strategic plans (plans or goals) so that the budget can be worked out accordingly. This means that the long-term plans of the organization should be taken into account when compiling the budget.

The main factor of the budget, which limits the work of the organization. This is usually a sales demand. If an organization can not produce and sell more of its products because consumers do not accept that price, it limits the company’s demand. Management may not know the limiting factor, such as vehicle power, distribution, sales resources, until the budget is ready. This is the starting point for budget preparation. Once this factor is determined, it is planned to make the rest of the budget.

Preparation of sales budget. This is usually a core or primary budget based on sales forecasts, which is the basis for most other budgets, as it has been proven to be the core budget factor for most organizations. This leads to the preparation of budgets for the future. Finished stock, production, production resources, total costs, raw materials (stock), raw materials (purchase)

In case all the budgets are fully in line with each other, they are summarized in the main budget, which consists of the profit-loss account, the budget balance-monetary budget.

Cash budget is one of the most important planning tools that any organization can use. Its usefulness is felt when it shows that there is insufficient cash resources to finance planned operations. The cash budget can show four positions or scenarios that show management the potential problems that may arise so that management can avoid such problems.

The context of the position is one of the areas where the budget interacts with the implementation of the business strategy. For example, when the cash budget shows a short-term surplus position, management is offered either short-term investments, early payment to creditors for discounts, or increased sales by increasing debtors երը shares; in the event of a short-term deficit, appropriate action is taken. to implement. should be taken by management, including increasing creditors, reducing debtors, and arranging overdrafts to finance the deficit. The other long-term cash surplus is solved by making long-term investments, organically expanding or acquiring or diversifying, among others: և The long-term deficit can be remedied by increasing long-term financing or reinvestment opportunities.

Budgets և goals (strategies) are clearly allocated to the areas և activities in the organization that are considered priorities. If potential goals are to be achieved, priority strategies are to be implemented, resources must be provided.

However, in inter-organizational environments, research reveals resource acquisition (ie, budgeting), collaborative interaction, and organizational strength as complex parts of implementation processes. Thus, the inter-organizational struggle for larger budgets also affects budget planning and strategy implementation. For example, where resources are limited ռազմ strategic opportunities may be limited. Because budget planning is usually annual, budgets often need to be different from current situational needs, especially in the last part of the budget period. That is why flexible budgets are designed to allow for changes in the level of activity that can result from adaptive changes in functional competition strategies.

It should be noted here that as the role of today’s financial managers moves rapidly up the strategic plane, the challenge becomes more difficult in light of the accelerating pace of change. This reality obsolete traditional approaches to corporate governance, such as 3-5 years of static annual planning և static budgets. To provide a useful financial insight, managers must sooner or later think of business strategy as an ongoing process of correction that is more like a real-world option than a projected cash flow statement.

Implementing a business strategy can be likened to a human body without a soul (budget). If there is no soul in the body, it is considered dead. By the same token, a budget is the soul (especially when implementing a new business strategy) for implementing a business strategy. Thus the two are connected են interconnected.

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