Discuss the role of strategic planning in the budgeting process. How does it differ from short-term planning? What are the advantages and disadvantages of the participatory approach to budgeting?
Discuss the role of strategic planning in the budgeting process. How does it differ from short-term planning?
Strategic planning is about figuring out the critical success factors to win in the marketplace. For instance, if you are Starbucks, you need to have access to the finest quality beans and so you would put plans in place to partner with farmers in excellent soil locations to sell their full crop to them. Strategic planning initiatives result in changes to the budget to adjust for the initiatives. For instance, the cost of flying to the farms and meeting with the farmers would be in the budget for Starbucks.
Strategic planning considers long range goal such as which products and which markets to enter, ...
Your tutorial is 435 words and discusses how short and long term plan differ and gives three advantages and three disadvantages of participatory budgeting.