Budgeting and Strateg-Kraft Food Case

In: Business and Management

Submitted By irisfish
Words 1762
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Budgeting and strategy
A Kraft Foods UK case study
Case study pages

• 1: What is a budget? • 2: Kraft´s income and expenses budget • 3: The importance of feedback • 4: Constructing an expense budget • 5: Advantages and disadvantages of expense budgeting • 6: Alternative types of budgeting • 7: Conclusion

Read more: http://businesscasestudies.co.uk/kraft-foods-uk/budgeting-and-strategy/conclusion.html#ixzz1nUCFRFJb
What is a budget?

A budget is a financial plan that sets out, using figures, an organisation's expected future results. For planning purposes, organisations can use many different types of budgets. For example: • Income and expenditure budgets. These show how much an organisation expects to receive and to spend in future periods. • Production budgets. These set out how much an organisation must produce in coming periods of time in order to meet demand. • Profit budgets. These bring together planned sales, costs, and profit figures.
By creating budgets, managers can: • set out a clear plan, involving target figures for defined periods of time • communicate their targets clearly • motivate employees to achieve these targets • control performance by monitoring actual outcomes against planned targets • meet the organisation's objectives.
This case study illustrates how Kraft Foods uses budgets to enable it to meet business objectives related to financial performance with a view to achieving its vision: to become 'the undisputed global food leader.'
[pic]Kraft has several important objectives related to its vision. These include: • being the employer of choice • being a food industry high performer • becoming an indispensable partner to customers • being a responsible organisation and a positive force in the communities in which Kraft employees live, work…...

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