in order to simplify this article and strategic planning will be used to mean the same thing. Budgets and objectives are relevant, so is the implementation of business strategy. The implementation of the strategy in the final stage in the strategy of business (before the monitoring and control). It can be defined as the translation of strategy into organizational work through the organizational structure and design, resource planning and management of strategic change. '' Definition of the analysis, it becomes clear that the implementation of strategic business strategy, therefore, is how to integrate the various components in successfully implemented well.
, organizational structure and design aspect of the definition has to do with how to take advantage of the human resources in the organization, mobilize and organize addressed through the use of the organization; and the design side is that most employers the company can leave if you were not motivated or given the position the right to work in the organization and other words untapped.
next aspect in the implementation of business strategy - Resource Planning determines what resources need to be created and discarded. It deals with identifying resources, and how these resources will be deployed and controlled to create the necessary competencies to implement strategies successfully. This configuration of resources depends on the protection of the unique resources, that is where the strategy is based on the uniqueness of certain resources, such as legal means, and installation resources together (any combination of resources to create competence) business process reengineering (ie to create improved dynamic performance) and exploiting experience by learning and continuously improve the efficiency improvement. One of the many problems is a conflict arises between departments on the allocation of special funds, where money is involved in the implementation of the strategy.
strategic change management is the next element in the implementation phase. This change includes a gradual change who builds only on skills and routines and beliefs of the organization so that effective change, and transformational change, which requires the organization to change the model over time.
in building a strategic management system and budget process should be linked with business strategy. In the beginning the budget process and thus, is set budget and organizational goals and objectives up to the next budget by budget managers, which is aimed at the production of the main budget, which combines the business units and the budgets and functional main task. From the budgets of the period, the budget director builds the core budget. This is then adjusted to calculate the expected value of shareholders' equity, which in turn serve as a test on the company's strategy. This is the point that can be verified by strategic analysis. If the strategic plans do not create shareholder value, they are taken through the cycle adjustment strategy. Once in the main budget and, therefore, the blue prints strategy is through the appointment of the budget to be used and the strategy for its implementation.
get adequate budget is one of the main requirements for the implementation of effective business strategy. The question is where the interaction of implementation of the budget and the strategy work?
There are many flood of evidence of failure in the implementation plans and business strategies in spite of reasonable analysis. Someone has said that good planning can greatly reduce the risk of business failure.
plan to drop the activity in the future. It is usually activated in the budget, if quantified. Thus, the next period of time in which relate to the budget expressed in terms of money. And defined as the financial statement, or quantitative, prepared by a specific accounting period, including plans and policies that must be followed during that period.
In general, they are prepared and procedural methodology budgets usually tracked by most organizations (although the procedures may vary depending on the size and type of leadership vary similar organizations) as follows:
communications details: officials for the preparation of the budget must be aware and informed the company's strategic plans (plans or goals) so that the budget has been designed accordingly. This means that long-term plans of the organization must be taken into account in the formulation of the budget.
main budget, which limits the organization's performance factor. It is usually the demand for sales. If the organization can not make more of their products and sell because consumers do not accept that the price, which restricts the application of the company. Management may not know the extent of factors, for example, the device and the ability of the distribution and sale of resources, even the budget, has prepared a draft. This is the starting point in the preparation of the budget. Once this factor is selected, the appointment of the rest of the budget that can be drawn.
preparing sales budget: These are usually the norm or the initial budget, which was prepared based on sales forecasts and that most of the other budgets emerge because it has proven to be the main factor for most organisation.This budget leads to initial preparation of budgets for the following: the final inventory is good and production resources for the production and overhead costs, raw materials (stocks), raw materials (purchase)
and why is all budgets including full conformity and with another one summed up in a major budget consists of the profits in the budget and account losses and balance sheet in the budget monetary and budget.
cash budget is one of the most important planning tools that can be used for any organization. And it sees its usefulness when it indicates that there is insufficient cash resources to fund planned operations. The cash budget can show four functions or give management an indication of the potential problems that may arise so that management can avoid such problems scenarios.
implications of the situation is one of the regions that interact with the budget implementation of the business strategy. For example, when the cash budget shows the position of the surplus in the short term, and pushed the administration to make either short-term investments, and pay creditors in early to get a discount or increase sales by increasing the debtors and balances, the deficit in the short term, the appropriate actions to be taken by management and include creditors increase, reducing the debtors and arrange an overdraft to finance the deficit. The others dealt with surplus cash position over the long term through a long-term investment, and expanding organically or through acquisitions or diversifying and others. And long-term deficit can be dealt with by raising funding or divestment opportunities in the long term.
is allocated budgets and goals (strategies) clearly to those areas and activities of the organization, which is seen as a priority. If the important things that should be achieved, and priority strategies implemented, we must provide the resources.
However, research in the joint sites between organizations and identifies resource acquisition (ie budget), and the acquisition of cooperative interaction and organizational gain power as part of the difficult implementation processes. Thus, fights between regulatory largest budgets also affect budget planning and affect the implementation of the strategy. For example, where resources are limited and can be restricted, strategic opportunities limited. Since the budget planning is usually annual, often bound budgets to be different from the current situational needs, especially in the latter part of the budget period. Because of this, it has been folded budgets designed to allow for changes in the level of activity, which may result from adaptive changes in the functional and competitive strategies.
It must also be noted here that while the role of financial managers today's fast-moving upstream in the strategic plane, the challenge becomes even promising in light of the accelerated pace of change. This reality, which become obsolete traditional approaches to corporate governance, such as 3-5 years fixed annual planning and fixed budgets. Providing useful financial vision, sooner rather than later managers need to think about business strategy as a process, of course, the ongoing correction is like a series of real options from the statement of projected cash flows and a single.
implementation of the strategy can be likened to the human body without a soul (budget). If there is no spirit in the body, it is considered dead. In the same vein the budget is that the spirit (especially when implementing a new business strategy) to implement the business strategy; and therefore, to that the two are linked and interdependent.
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