Effectiveness And Implementation Of Strategic Planning In Management
A good strategy plan also calls for the Company to be adaptable to different situations, which …show more content…
It ensures that the Company is proceeding in the direction specified in the strategy. As stated by Churchill (1984), budgets have a number of prime purposes; for CT, for instance, this is planning and control. Companies must decide which functions are more important and then resolve a number of operational, resource and R&D issues. Churchill (1984) concludes that small and innovative Companies should be more concerned with the planning aspects of budgeting. If budgets are used essentially as a planning tool rather than a control tool, then such a budgetary system positively impacts the business in relation to product innovation and financial performance (Dunk, 2011).
A budget plan is described by academics as a plan that is expressed in quantitative terms: resources needed to succeed in delivering the organisational plan and achieving the goals and objectives over a given period of time (Shah, 2007; Lucy, 1996).
Implementation of the strategic budget plan normally has a one year time horizon, and through specific measures. Below is a diagram of the budget process a key part of the Company 's planning process (Figure …show more content…
The intentions were to identify the gap in the literature so as to highlight research issues which could be explored. And to put into focus the foundation of this research, it was observed that contemporary studies viewed accounting and budgeting practices as an active ambassador in the construction of organisational and social realities.
The general theme that characterised the studies reviewed is that of accounting change. Evidence presented by these studies suggests, that accounting and budgeting practices are fluid and emergent crafts. They are constantly being implicated in a number of different ways in organisational and social transformations, at different stages of organisational life and social contexts were reviewed.
Methodologically, these research studies are inductive and interpretive in nature. They rely on the philosophy of the social science. The underlying belief is that some aspects of the social world cannot be researched by 'scientific ' methods. They differ from those traditional studies which relied on the logical deductive approach which is rooted in the philosophy of the natural