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Budgeting Characteristics

Critically evaluate budgeting as a tool for planning and control, making reference to readings you have undertaken. Refer to specific authors or examples where appropriate to support your discussion.

Suggested journal articles :
Howell, R. (2004) Turn your budgeting process upside down, Harvard Business Review, July, pp. 21-22.
Jehle, K. (1999) Budgeting as a competitive advantage, Strategic Finance, vol. 81, issue 4 (October), pp. 54-57

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Solution Preview

Budgeting is a very effective and important tool for planning and control, largely due to the fact that budgeting allows a leader to ascertain what the true financial capabilities are within given operational parameters. Budgeting is very important in the situational analysis of a of any strategic business plan, or other strategic planning, due to the fact that a thorough situational analysis will help an individual to ascertain what the probable financial costs of engaging in a given course of action would be. Effectively budgeting based upon the probable scenarios contained within a situation analysis, which will provide a leader with information as to the probability of them being able to afford to engage in certain courses of action, based upon the contingencies within the given situation, and the budgetary ...

Solution Summary

This solution describes the importance of budgeting in strategic planning and control.