Discussion/2 responses
INSTRUCTIONS
Prior to beginning work on this discussion forum,
● Review Chapters 5, 8, and 9 from the text, Strategic Management for
Organizations.
Abraham, S. C. (2012). Strategic management for organizations [Electronic version].
Bridgepoint Education.
● Review the supplemental resources given under recommended resources.
● Review the webpages given under the required resources.
● Review Budgeting revisited
● Links to an external site.
● by Otti.
● Download the Operating Budget Template
● Download Operating Budget Template.
You can also refer to Mergent Online
Links to an external site.
and Business Insights (GALE)
Links to an external site.
for more information on how to use these databases.
Using the same publicly traded company you used in the Environmental Scanning
Interactive Assignment, research the company online by accessing the Mergent
database
Links to an external site.
in the University of Arizona Global Campus Library which offers company financials,
descriptions, history, property, subsidiaries, officers, and directors. Also, access the
Business Insights (GALE)
Links to an external site.
database in the University of Arizona Global Campus Library, which offers information
on global companies and industries. The database includes SWOT reports, market
share data, financial reports, case studies, business news, and company comparison
charts.
You may always research using credible online sources of corporate financial
information; just be sure that wherever you obtain financial information, you cite your
source.
For this discussion, you will look at the financial statements for the company you
selected and, using the previous quarter’s financial data, interpret the data and propose
a budget for the next quarter based on your current and prior analysis of company
performance.
Complete the budget template using the Operating Budget Template
Download Operating Budget Template
:
● List the current sales, discounts and allowances, net sales, margins,
operating costs, and earnings before and after taxes. Include a minimum of
two financial ratios (below) in your analysis.
● Prepare the next quarter’s budget based on your interpretation of past data.
Include at least three of the following types of relevant financial ratios in your analysis
● Profitability Ratio
● Liquidity Ratio
● Solvency Ratio
● Valuation Ratio
● Leverage Ratio
NOTE: Incorporate the feedback you receive from your instructor and peers and save
your work. It will be part of your Strategic Plan Final Project for this course.
Initial Post: In your initial post, provide a brief description of your company ( Beyond
Meat Inc), a summary of your Operating Budget, and a rationale supporting suggested
budgetary changes. Attach your Operating Budget Template to your initial post for your
instructor and peers’ review.
Properly cite references according to the APA style
Links to an external site.
outlined in the University of Arizona Global Campus Writing Center.
Guided Response: Respond to at least two of your fellow students’ posts with an
analysis of their operating budget and provide recommendations to extend their thinking
using information from the week’s readings, examples from current events, and other
scholarly or credible resources.
PEER RESPONSES
1.Hello all,
The company I am analyzing for the budgetary planning exercise is the Boeing
Company. For the next quarter, I increased the operating budget to help ensure that
Boeing has enough people and resources to make the significant changes required to
improve safety and quality at the workplace and the aircraft. Brand image has been
tarnished, and it is necessary to rebuild the trust of regulators and the flying public. I
have increased the sales revenue due to the expectation of an increase in rate and
selling off sitting inventory. As you can see from the attached budget plan, the cost and
expenses budget has increased by 16%. This is where the money would be spent on
engineering, quality, etc, to rebuild the brand.
WK 4_ Operating Budget Boeing.docx
Download WK 4_ Operating Budget Boeing.docx
Nathan
References
Boeing Company – Investors – Overview. (n.d.).
2. I have attached my Operating Budget spreadsheet for Apple Incorporated. I used the
Business Insights (GALE) data to populate the information. When predicting next
quarter, I went back to look at the previous two quarters and see how the company was
trending.
I believe that the product revenue will continue to slightly decline since Apple was late to
releasing AI services, as I found during the SWOT previously. I found out that Apple is
dealing with a strong competitor in China that is reducing their sales. Service revenue
has steadily increased so I continued that trajectory. Lastly for Revenue, Other Income
had no data three quarters ago so I projected that it will decline 10%.
Costs and Expenses all showed a trend of decreasing, which I predict will offset the
reduced product revenue and ultimately cause a net positive profit. For the ratios I
continued the trends of slight positive movement, except for the leverage ratio I left that
the same. Due to only a slight increase in net profit and the company consistently
leading the market, I believe the great leverage ratio will remain, which is a good thing.
