edf40wrjww2CF_PaperMaster:Desc
A. Discuss each step in River Beverages’ budgeting process. Begin with the division manager’s initial reports and end with the board of directors’ approval. Is each step necessary? Explain.
In the beginning of a company’s fiscal year managers must submit a report to the vice president in this case the VP of River Beverages. The report summarizes the company’s capital, sales and income forecast before the company’s fiscal year begins.
The report is used for the strategic planning process, which will help the managers forecast the capital, sales and the income to be gained during the year upcoming fiscal year. The division managers will then take into account and become part of: the economic conditions, the market share, market planning and strategic planning. The division managers are not only focus on the sales goals of the Beverage Company but also meet to focus on their forecasts based on subjective issues.
The strategic research team will then begin a formal assessment of each market segment in its region. The team will create a sales forecast for each division, which is then changed into the River Beverages Company’s forecast. The division manager of River Beverages will review the forecast; the strategic research team will determine the objectives of the team separately. Chances are the research team may discover an entirely different set of forecasts for the different segments and the company as a whole. Regardless, if the division managers have already conducted the review, the finding may appear as duplicated efforts, but on the other hand the review will provide a better and more accurate forecast. The strategic research team and the divi ...