Now That You've Selected The Goal You Want To Accomplish

Now That Youve Selected The Goal You Want To Accomplish In Your Strat

Now that you've selected the goal you want to accomplish in your strategic management plan, it's time to start budgeting out the costs that will be involved with its implementation. This assignment will require you to create an operating budget that takes into account the strategies and choices you've already made in previous sections of the course project. It's important that you carefully consider exactly what you'll have to spend money on in order to successfully complete your goal. The numbers will be very general estimates, but you'll need to show the ability to accurately identify the major costs. The categories and subcategories for the budget should cover most if not all of the new expenses that will be present.

This assignment should be at least two pages in length and complete the following:

- Goal Choice: Clearly identify your chosen goal in an introductory paragraph.

- Operating Budget: Create an operating budget for your goal. The budget should include common categories and subcategories such as general operations, HR, marketing, miscellaneous expenses, etc. Include all major expenses required for the goal. Common expenses include salaries, marketing channels, and inventory. Connect the costs/categories that you're considering to your already created marketing, management, and HR strategies discussed in earlier portions of the project.

- Capital Budget: Identify two long-term assets from the capital budget that will play a role in the completion of your goal. These can be new purchases or existing assets. Briefly explain the impact that each will have.

Paper For Above instruction

The successful achievement of organizational goals is fundamentally tied to meticulous financial planning and resource allocation. In this paper, I will outline a comprehensive operating and capital budget that supports the strategic goal of expanding market share through enhanced product development and market penetration. The goal is to increase market share by 15% over the next fiscal year, focusing on innovation, customer engagement, and operational efficiency.

Goal Identification

The primary goal is to expand the company's market share, which necessitates investment in new product development, aggressive marketing campaigns, and operational improvements. This goal aligns with our strategic vision of becoming a market leader in our industry segment while maintaining financial sustainability.

Operating Budget Development

The operating budget is designed to encompass all necessary expenses involved in achieving this goal. Major categories include general operations, human resources, marketing, and miscellaneous expenses. Each category covers essential subcategories that directly contribute to the goal.

General Operations

This category includes costs associated with day-to-day management and operational activities. Subcategories encompass office supplies, utilities, and administrative support. An estimated annual cost of $150,000 is allocated to general operations, based on prior expenditure patterns and projected increases due to expanded activities.

Human Resources

Given the need to support new product lines and expanded marketing efforts, staffing levels will increase. Costs include salaries and benefits for new hires in product development, marketing, and customer support departments. For example, hiring two additional product engineers at an average annual salary of $80,000 each and one marketing manager at $70,000 are projected, totaling approximately $230,000 annually.

Marketing

Marketing is critical to the goal of market expansion. Expenses include digital advertising through social media, search engine marketing, content creation, and traditional advertising channels such as print and radio. A budget of $200,000 is allocated for targeted marketing campaigns, aligning with strategies discussed earlier that focus on digital engagement and brand awareness.

Miscellaneous Expenses

This category accounts for unforeseen costs such as product testing, travel, and contingency funds. An estimated $20,000 is set aside to cover these unpredictable expenses, ensuring flexibility in budget management.

Connecting Budget to Strategies

The outlined expenses directly connect with the company's marketing, HR, and management strategies. The increased marketing budget supports digital-first strategies aimed at reaching targeted customer segments. HR investments in new hires complement our management strategy to improve innovation and operational efficiency. Overall, this budget aligns with the strategic plan to foster growth through targeted investments.

Capital Budget Consideration

In addition to the operating expenses, two significant long-term assets are identified as critical to achieving the goal:

1. New Product Manufacturing Equipment

This asset includes advanced manufacturing machinery that enables the production of high-quality, innovative products. Its impact will streamline production processes, reduce unit costs, and enable the company to meet increased demand efficiently.

2. Customer Relationship Management (CRM) System

An upgraded CRM system will facilitate better customer engagement, personalized marketing, and data analytics. This asset’s impact lies in strengthening customer loyalty, improving targeted marketing efforts, and supporting data-driven decision-making.

References

  1. Barney, J. B., & Hesterly, W. S. (2019). Strategic Management and Competitive Advantage: Concepts and Cases. Pearson.
  2. Bryant, S. M. (2020). Budgeting and Financial Management for Nonprofit Organizations. International Journal of Nonprofit and Voluntary Sector Marketing, 25(5), 148-157.
  3. Drury, C. (2018). Management and Cost Accounting. Cengage Learning.
  4. Higgins, R. C. (2018). Analysis for Financial Management. McGraw-Hill Education.
  5. Kaplan, R. S., & Norton, D. P. (2008). The Balanced Scorecard: Translating Strategy into Action. Harvard Business Review Press.
  6. Norris, G. (2021). Strategic Budgeting in Dynamic Environments. Journal of Financial Planning, 34(3), 56-63.
  7. Shim, J. K., & Siegel, J. G. (2019). Budgeting and Financial Management for Nonprofit Organizations. John Wiley & Sons.
  8. Stavins, R. N. (2019). Policy instruments for environmental protection: economics and politics. Resources for the Future.
  9. Weygandt, J. J., Kimmel, P. D., & Kieso, D. E. (2020). Financial & Managerial Accounting. Wiley.
  10. Zeithaml, V. A., Bitner, M. J., & Gremler, D. D. (2018). Services Marketing: Integrating Customer Focus Across the Firm. McGraw-Hill Education.

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