Beyond budgeting – Reform or abandon budgeting?
Budgeting has been criticized as ‘an unnecessary evil’ by Jan Wallander and Jack Welch described it as the ‘bane of corporate America’.
Much of the criticism of budgeting can be attributed to a changing business environment in today’s world whereby competition has increased the importance of intellectual capital relative to tangible capital. Thus, it is easy to understand why arguments have been put forward to manage without budgets.
Critically discuss the validity of the above statement from the viewpoint of current global issues on the Food & Beverage industry.
Your critique should include arguments as to whether budgets be abandoned, or should they be reformed? If budgets are to be abandoned, what are viable alternatives? Alternatively, should they be reformed, what are the recommended approaches?
You should include reference to major theorists in your answer and include practical examples to support your discussion.
Assignment guideline:
Include Introduction (200 to 400 words), Contents, Referencing & Conclusion
Describe and evaluate a budgeting technique widely used in the food & beverage industry.
Examples of budgeting techniques that you may use:
Incremental budgeting, Zero-based budgeting, Standard costing, Rolling budgets, etc.
Discuss how employees accept or reject the budgeting technique or budgeting techniques used in the F&B industry: whether they support these techniques or not. Describe the advantages and disadvantages of the budgeting technique or budgeting techniques used in the industry that you have selected. Include real-world examples in your discussion. Link your points to human behaviour by using behaviour theories to support your points and back up your points by academic references (600 to 800 words).
Describe and evaluate a budgeting approach (or process) widely used in the F&B industry.
Examples of budgeting approach (or process) that you may use: Participative (or Bottom-up) or Imposed (Top-down) approach.
Describe and evaluate a budgeting approach widely used in the F&B industry. Explain how employees accept or reject the budgeting approach used in the F&B industry: whether they support the approach or not. Describe the advantages and disadvantages of the budgeting approach used in the F&B industry. Include real-world examples in your discussion. Link your points to human behaviour by using behaviour theories to support your points and back up your points by academic references (600 to 800 words).
State your stand – should organisation in the F&B industry continue with budgeting or should they abandon them? (400 to 600 words).
Choose one of the following:
If you feel that organisations in the F&B industry should continue to prepare budgets, then what changes can they make so that it becomes relevant given current global issues.
If you feel that organisations in the F&B industry should abandon budgets, then what other tools or alternatives do you recommend they use so that it becomes relevant given current global issues.
Use the following Behaviour Theorists to support your answers on Link your points to human behaviour by using behaviour theories to support your points
• Taylor: Theory of Scientific Management
• McGregor: Theory X and Y
• Hopwood
• Argyris
• Mayo
• Maslow
Provide in-text citation and full list of reference using the Harvard Referencing format.
ADDITIONAL GUIDANCE
1. All calculations must be detailed and presented clearly.
2. Use of published work (citing references) within text is expected.
3. A full list of references should be presented at the end of the case study.
4. Please avoid the use of ‘I, We, Us’ in your case study. You are expected to write in third person.
5. Your answer should not repeat the question as it will be included in your word count.
6. Formatting:
a. Font Type: Arial.
b. Font size 11/12.
c. Line spacing 1.5 to 2.
d. All pages must be numbered
e. All graphs, charts and tables should have a number and a title.
f. All text must be aligned to the left.
7. Ideally written from an Asian perspective & conclusion to be F&B industry should continue to prepare budgets and make changes so that it becomes relevant given current global issues.
