Flashcards on Implementing Business Strategy Across Functions
Implementing Business Strategy Across Functions: A Guide
Tap to flip · Swipe to navigate
Finance
29 cards
Card 1
Question: What is a financial budget in a firm?
Answer: The planned allocation of a firm’s resources based on forecasts of the future.
Card 2
Question: Name several common types of financial budgets.
Answer: Cash budgets, operating budgets, sales budgets, profit budgets, factory budgets, capital budgets, expense budgets, divisional budgets, variable budget
Card 3
Question: Why are budgets especially important when an organization faces financial difficulties?
Answer: They guide strategy implementation during financial difficulties.
Card 4
Question: What is one limitation of highly detailed budgetary programs?
Answer: They can become cumbersome and overly expensive.
Card 5
Question: What problems can result from overbudgeting or underbudgeting?
Answer: They can cause operational and financial problems for the organization.
Card 6
Question: How can financial budgets become counterproductive in relation to objectives?
Answer: Budgets can become a substitute for objectives, turning a tool into an end in itself.
Card 7
Question: How can budgets hide inefficiencies?
Answer: If based solely on precedent rather than periodic evaluation of circumstances and standards, budgets can conceal inefficiencies.
Card 8
Question: What negative workplace outcomes can result when budgets are used as instruments of tyranny?
Answer: Frustration, resentment, absenteeism, and high turnover.
Card 9
Question: What managerial practice can minimize the negative effects of authoritarian budgeting?
Answer: Increasing the participation of subordinates in preparing budgets.
Card 10
Question: Why is corporate valuation important to strategy implementation?
Answer: Because many strategies (acquisitions, retrenchment, divestiture) require establishing the financial worth or cash value of a business.