Marketing Strategy : Distribution And Budgeting Process Essay

918 Words Nov 20th, 2015 4 Pages
Marketing Strategy: Distribution The budgeting process is an approach that needs to be carefully selected, managed, applied and controlled. As the CEO of the company my mission is to ensure the right business practices are applied to generate better outcomes for our organization. Our current budgeting process is a popular approach used at many local, state, or national governmental agencies, and nonprofit organization, which consist of spending at the end of the budget cycle the amount that was not used. Managers tend to do it, as they often feel that if they don 't spend such amount during that specific period, next year their budget will be reduced by the same dollar amount. This obviously could make managers to spend money unnecessarily and manage resources in ways that can harm the company. The purpose of this memo is to explain budget managers the reason why is not convenient to utilize the ‘use it or lose it’ approach as budgeting process due to its harmful effects and at the same time it will provide an alternative solution for our current system. According to Horngren, C. T (2014), “Budgeting can cover such diverse issues as how much time to spend inspecting a product and how much money the company will allot to research and development in the coming year” (p. 271). It is more than clear that all organizations need from budgets to manage their resources in a way that can produce as much as possible, however, is important to keep a good quality and reward our…

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