INSTITUTE-UNIVERSITY SCHOOL OF

BUSINESS
DEPARTMENT-COMMERCE
Bachelors of Commerce
Corporate strategy
CMT-312

CORPORATE BDUGETING DISCOVER . LEARN . EMPOWER

 CORPORTE BDUGETING

Course Outcome
CO Title Level
Number
Will be covered in this
lecture
CO1 The students would be able to understand the Remember
concept of corporate strategy.  
CO2 The students would be able to gain knowledge segmentation Understand
organizations .  
https://www.shiksha.com/mba/articles/
CO3 The students would be able to an understanding planning and Understand
execution of strategies. corportaestrategy-careers-blogId-19895

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 • Space for visual (size 24)

BUDGETING

Course Outcome
Will be covered in this
CO Title Level
Number lecture

CO1 Explain the CONCEPT OF CORPORATE BUDGETING. Remember

 
CO2 Explain the basic of CORPORATE STRATEGY Understand
 
CO3 Explain the origin of Strategy. Understand

CO4 Show the DIFFERENT STRATEGIES. Understand

 
CO5 Explain the characteristics of strategies. Understand
 
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 WHAT IS BDUGETING..
• A budget is a forecast of revenue and expenses over a specified future period. Budgets are utilized by corporations,
governments, and households. Budgets are an integral part of running a business efficiently. Budgeting for companies
serves as a plan of action for managers as well as a point of comparison at a period's end.

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 KEY POINTS.
• A budget is a forecast of revenue and expenses over a specified period. Budgets are an integral part of running a business
efficiently.
• A static budget is a budget with numbers based on planned outputs and inputs for each of the firm's divisions.
• A cash-flow budget helps managers determine the amount of cash being generated by a company during a period.
• Flexible budgets contain the actual results and are compared to the company's static budget to identify any variances.

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 TYPES OF BUDGET.
• MASTER BUDGET- Most companies will start with a master budget, which is a projection for the overall company.
Master budgets typically forecast the entire fiscal year. The master budget will include projections for items on the income
statement, the balance sheet, and the cash flow statement. These projections can include revenue, expenses, operating costs,
sales, and capital expenditures.
• STATIC BUDGET- A static budgets a budget with numbers based on planned outputs and inputs for each of the firm's
divisions. A static budget is usually the first step of budgeting, which determines how much a company has and how much
it will spend.
• OPERATING BUDGET- The operating budget includes the expenses and revenue generated from the day-to-day business
operations of the company. The operating budget focuses on the operating expenses, including cost of goods sold(COGS)
and the revenue or income. COGS is the cost of direct labor and direct materials that are tied to production.
• CASH FLOW BUDGET- A cash-flow budget helps managers determine the amount of cash being generated by a
company during a period. The inflows and outflows of cash for a company are important because expenses need to be paid
from the cash generated

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 BUDGETING PROCESS.
1. Set realistic goals.
2. Identify your income and expenses.
3. Separate needs and wants.
4. Design your budget.
5. Put your plans in to actions.
6. Seasonal expenses.
7. Look ahead.

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 WAYS TO IMPROVE BUDGETING
PROCESS
1. Align your budget to a strategic plan.
2. Create a clear process and work flow.
3. Improve Accessibility.
4. Used driver based planning.
5. Test scenarios and simulation.
6. Support with explanation.
7. Reforecast, Reforecast, Reforecast!!!!!!!!!!!
8. Automate reporting , charts and KPI’s.

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METHODES OF BUDGETING

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 SUMMARY
• Budgeting is the tactical implementation of a business plan. To achieve the goals in a business’s strategic plan, we need
some type of budget that finances the business plan and sets measures and indicators of performance. We can then make
changes along the way to ensure that we arrive at the desired goals.
• Communicating plans to managers is an important social aspect of the process, which ensures that everyone gets a clear
understanding of how they support the organization. It encourages communication of individual goals, plans, and
initiatives, which all roll up together to support the growth of the business. It also ensures appropriate individuals are made
accountable for implementing the budget.
• Revenues and associated expenses in day-to-day operations are budgeted in detail and are divided into major categories
such as revenues, salaries, benefits, and non-salary expenses.
• budgets are typically requests for purchases of large assets such as property, equipment, or IT systems that create major
demands on an organization’s cash flow. The purposes of capital budgets are to allocate funds, control risks in decision-
making, and set priorities.

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Assessment Pattern

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 Applications
1. Study of the concept will educate and help students to understand the importance of CORPORTAE STRATEGY as an asset.

2. Study of the concept will help students in how to manage PLANNING in the turbulent environment, as future managers

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 References

• Reference book-Corporate strategies and planning , Excel Books ,New Delhi.

• Reference Website: www.businessmanagementideas.com/notes/management-notes

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THANK YOU