Financial planning and budgeting has become a powerful tool of any company’s financial management. Planning and budgeting is an issue that should be solved in a complex. Therefore, this final English research paper highlights three main approaches absorbed: theoretical, practical, and analytical. Theoretical knowledge cannot be applied to practice without clear understanding of business, a feeling about the actual circumstances. Practical knowledge cannot be applied to professional tasks without analytical approach. This skills and approaches are presented and proven in this research. Having faced planning and budgeting process of middle-sized company, it has been noted that some issues of this important activity absence clarity, confidence, and flexibility. In order to optimize planning and budgeting process a thorough examination has been prepared in this research paper. The Company where experience has taken place is Levi’s XX that stands for Levi’s Vintage Clothing. Therefore, the industry examined is apparel, and as a market is taken the whole Globe.
Table of Contents
• The purpose of the study 4
• The main conceptual problem 5
1. Essence and role of financial planning and budgeting 7
1.1 Planning and budgeting role in company’s structure 7
1.2 Purpose of budgeting 7
2. Company profile, industry and market description 10
2.1 Levi’s XX story 10
2.2 Company’s structure 10
3. Principles and objectives to improve the budget process 11 3.1 CFR effective management and budgeting continuity regulation 11 3.2 New priorities 12
Urgent task of multinational companies today is the introduction of modern management technologies. In recent years, financial planning and budgeting have become two of the most popular management technologies in companies. Most top managers and shareholders understand the need in using efficient methods of planning and budgeting in business management and therefore struggle for best performance. In modern conditions company in order to operate successfully in the market, has to improve its effectiveness. Under conditions of uncertainty in market economy, increased competition in the market, the actual problems are: • Implementation of operational and tactical activities in accordance with developing strategy of the enterprise; • More efficient use of resources;
• Reduction of losses and overhead;
• Adaptive management of the enterprise in an uncertain environment. The first three problems are solved in the framework of constructing a classical budgeting system that allows to identify unexploited opportunities through integrated planning, reduce losses due to the alignment between the resources used to run the operational activities based on strategic objectives. Solving the problem of adaptive control is possible with the implementation of moving the budget. Thus, budgeting is a powerful tool for improving the efficiency of enterprises in market conditions. • The purpose of the study
The purpose of study is to identify key issues and develop proposals to improve planning and budgeting process in administering a middle-sized multinational company with a developed system of intra-services. To accomplish this goal the steps during the study were as follows: • Explore the nature and role of budgeting in the enterprise; • Analyze of the current budgeting system in the management company; • Identify key issues and challenges in the development of the holding associated with the process of budgeting, building a financial structure; • Analyze the existing budgeting process and to develop proposals to improve the financial structure, fiscal structure and budgeting process of the company. The object of research is the system of financial management in a medium-sized multinational company operating in the global market of premium apparel. The subject of this...