Advantages And Disadvantages Of Budgeting

1. What is zero-based budgeting? This is a budgeting process that requires managers to prepare budgets each period from ground zero for all the operations. Each period budget can feed off previous approved period budget. Under this method every activity must be justified and cost explained that generates revenue for a company. All costs are justified each time a budget is completed.

Why do most retailers utilize incremental budgeting?

Retailers use incremental budgeting because it is a simple process and easy for store managers to produce. Incremental budgeting allows for period to period comparison which is useful to track records for cash flow and expenses. Improves the budgeting process and helps weed out counterproductive activities.

Explain what you believe to be the best “Promotional Strategy” of a product or service you have seen.

By far the best promotional strategy was “Wendy’s: Where’s the Beef? The campaign was successful because it featured a giant hamburger bun and a cute set of old ladies. One in which lives in Eustace, Texas and now is buried in Mabank Texas. Wendy’s took on and targeted their competitors with a simple phrase “Where’s the beef? All while pointing out the lack of beef in their competitor’s burgers. It quickly became a catch phrase around the world and still used today by people of age that remember.

3. Review the short case on page 505, Chapter 19 of the text. Case 1: Making Every Day Seem Special

Discuss the impact of “Christmas creep” on a retailer’s overall promotional

It is important to know the customers buying power. What’s makes them buy and what product demands to they have.

Organization and HR:

Is it necessary to be political correct all the time? My point is that the political correctness movement has gone too far. While the original intent of political correctness may have been good. It has become a bigger problem than the problem it was intended to address.

Operations and Special Services:

How do you manage change? This topic comes up multiple times within BGC. The auditor should review changes that took place and seek evidence that the change was proactive.

Financial Analysis and Control:

What plans are in place to counter organize crime? Organized retail crime cost millions each year and its continuing to grow unchecked. It is a serious issue that needs to be addresses.

Buying:

Are you commented on buying products and that customers cannot get from other retailers? To drive customers trust and confidence retailers must make a commitment to carry products that competition refuses to carry.

Pricing:

Are you committed to being the low price leader? Volume cures all evil regarding operational control cost. It is a simple! Increasing volume lower expenses.