Discussion: Balanced Scorecard
Pretend you are a manager of your favorite manufacturing company (from the Module Three discussion). Discuss how you would use the balanced scorecard to evaluate your company. Be specific.
(Module Three discussion).
Why are budgets important to a company?
Once your business is operational, it’s essential to plan and tightly manage its financial performance. Creating a budgeting process is the most effective way to keep your business – and its finances – on track.
Benefits of a Business Budget
There are a number of benefits of drawing up a business budget, including being better able to:
Manage your money effectively
Allocate appropriate resources to projects
Meet your objectives
Identify problems before they occur – such as the need to raise finance or cash flow difficulties
Plan for the future
Increase staff motivation
The manufacturing company I choose is John Deere.
They have been in business since 1837, and seen a great many changes in its business, its products, and its services. Recessions, wars, economics trop downs, and Deere has always been ready and willing to embrace those challenges, keeping the founders original core values of integrity, quality, commitment and innovation.
I have always been impress with companies – not just manufacturing companies – that have the capacity to remain successful though the ages. There is a set the qualities that all they have in common: competitive advantage, above-average management, and market leadership. But budget management is the essential tool can’t be absent in the equation.
The budget I could recommend to John Deere is Sales Budget strategy, especially because Deer implementation of product to a global market. This way both income and growth investors are appease and a significant amount of opportunity is generated with the support to back it up. Sales are vital for companies in such cash intensive industries such as the machinery industry. This type of budget call to not raise the dividend until projected earnings and sales have increased enough to warrant dividend growth.
Also because of the diversity of product and services John Deere offer, and the plan that this company has to be the world leader on its market as to expand globally, having impact on performance, profitability and asset management. John Deere has to set in place a long term strategic budget to coordinate the activities needed to achieve the long-term goals on sales profitability, assets turns, cost structure, quality and innovation. Mainly Realizing sustainable SVA* growth through global expansion: Global agricultural equipment solutions preeminence, globally diverse construction equipment solutions, $50 B sales by 2018, 12% operating margins by 2014, 2.5 asset turns by 2018.
Deere & Company, strategy overview-November 2013
Deere and Co. [DE, listed on the NYSE] Jerid Bethke-2012