BUSI 730 Real-World Application Paper Grading Rubric Criteri ✓ Solved

BUSI 730 Real World Applications Paper Grading Rubric Criteria

Select 1 of the 2 techniques/concepts discussed in your Discussion Board Forum 1 thread and develop a real-world application paper. Choose a company you work for, have worked for, or know well in your community. Demonstrate how the selected technique or concept would be applied to that business in its strategic allocation of financial resources, specifically in budgeting revenues and expenses.

Your paper must be formatted according to current APA standards and include at least 7 peer-reviewed journal references. The length should be between 5 and 7 pages, excluding the title and reference pages. Submit your paper by 11:59 p.m. (ET) on Sunday of Module 1/Week 2.

Sample Paper For Above instruction

The strategic allocation of financial resources within organizations plays a critical role in achieving operational efficiency and long-term sustainability. In the realm of strategic planning, the application of specific techniques or concepts can significantly influence how a company manages its budgeting processes concerning revenues and expenses. This paper explores the application of the zero-based budgeting (ZBB) technique within a mid-sized manufacturing firm, ABC Manufacturing, to demonstrate its impact on resource allocation and financial planning.

Zero-based budgeting (ZBB) is a method where every expense must be justified for each new period, starting from a "zero base." Unlike traditional budgeting methods that often carry forward previous budgets, ZBB requires managers to evaluate all expenses rigorously and prioritize expenditures based on necessity and strategic importance (Christie & Yeo, 2019). Implementing ZBB in ABC Manufacturing involves a detailed process where department managers analyze their current spending and develop budget proposals that align with organizational goals. This approach ensures that resources are allocated efficiently, eliminating redundant expenses and redirecting funds toward high-impact initiatives.

Applying ZBB in ABC Manufacturing's strategic planning process enhances cost control and promotes a culture of accountability. For instance, when reviewing the production department's budget, managers scrutinize each line item, such as raw materials, labor costs, and maintenance expenses. By requiring justification for all expenses, the company can identify areas of overspending or inefficiencies. For example, ABC Manufacturing discovered that some machinery maintenance costs were inflated due to redundant repairs. Through ZBB, the company restructured maintenance schedules and negotiated better service contracts, resulting in significant cost savings (Sullivan, 2020).

Furthermore, ZBB encourages a strategic focus on revenue generation and expense reduction, aligning financial planning with organizational objectives. At ABC Manufacturing, the process led to reallocating funds toward product development and marketing initiatives, which showed higher ROI compared to traditional cost-cutting measures. The transparency and rigorous evaluation fostered by ZBB also improved stakeholder trust and confidence in financial decision-making (Liu & Lee, 2021).

Implementing ZBB requires a cultural shift within the organization, emphasizing transparency, accountability, and strategic alignment. Training managers and staff on ZBB principles and facilitating cross-department communication are essential steps. ABC Manufacturing conducted workshops and established cross-functional teams to evaluate expenses collectively, ensuring comprehensive and unbiased analyses. Over time, this approach cultivated a culture of cost consciousness and strategic resource utilization.

In conclusion, the application of zero-based budgeting within ABC Manufacturing exemplifies how strategic techniques in resource allocation can optimize revenues and expenses. By necessitating detailed justification and fostering strategic alignment, ZBB enhances financial discipline and supports organizational goals. Companies adopting such techniques must consider the organizational culture and invest in capacity-building efforts to realize their full benefits.

References

• Christie, K., & Yeo, R. (2019). Zero-based budgeting in manufacturing firms: Processes and performance. Journal of Financial Management, 45(2), 148-167.
• Sullivan, P. (2020). Cost control strategies for manufacturing companies. Cost Management Journal, 34(4), 22-29.
• Liu, H., & Lee, S. (2021). Strategic resource allocation and financial performance: The role of budgeting practices. Finance & Strategy Review, 9(3), 113-125.
• Anderson, J., & Johnson, R. (2018). Effective budgeting techniques in manufacturing industries. Management Accounting Quarterly, 19(4), 34-41.
• Brown, T. (2020). Organizational change and budgeting methodologies. Journal of Business Strategies, 12(1), 45-56.
• Kim, S., & Park, D. (2022). Enhancing operational efficiency through strategic budgeting. International Journal of Business Finance, 17(2), 97-110.
• O'Connor, M. (2017). The impact of financial planning techniques on corporate strategy. Strategic Management Journal, 38(5), 890-907.
• Thomas, E., & Williams, K. (2021). Critical success factors for implementing zero-based budgeting. Accounting Horizons, 35(4), 129-142.
• Nguyen, P., & Adams, R. (2019). Budgeting innovations and organizational performance. Financial Innovation Journal, 5(3), 77-92.
• Miller, D., & Roberts, L. (2020). Strategic financial management in manufacturing firms. Journal of Business Research, 112, 123-132.