I need conclusion for this document in your own words 185-words 1 peer reviewed reference apa format
strategic planning and budgeting
There is always a difference between strategic planning and budgeting; an organisation needs a strategic plan and a solid budget. In a few words, a strategic plan is setting the organisation’s direction and goals and the guidelines that must be followed to achieve those goals. On the other hand, a budget looks at the money needed to support achieving the plans for the organisation. Therefore, budgeting is considered part of the strategic planning process. Strategic planning will always allow the organisation to see what is vital and how we can achieve that, the difficulties that the organisation might face and should be avoided, and the noise to ignore.
Kaplan & Norton(2006) are behind linking strategy and planning to budget. They discovered that the time frame between design and planning differs from the budget. However, ensuring that short-term realities are aligned with long-term planning is vital. (Prasetio, Patria & Lestari, Dwi. (2020)).
As mentioned earlier, strategic planning is important as it sets the map toward success for organizations. The first part of the strategic plan is the business plan which identifies the purpose of the business, budgets, goals, and mission statement. Cost should be strategically managed to avoid excessive overruns. (Elena,E(2019))
The importance of budgeting along with strategic planning is not limited to the compel planning, the ability to coordinate function within the organisation, a great tool to facilitate communication between departments, basis for responsibility accounting, tool for resource allocation, cause for a control mechanism and motivate the employees by having a solid plan and employees become engaged and contributing to the organisation vision.
Purpose Of Research
According to the Cambridge English Dictionary, a company’s strategy is the way it organises its operations through time with the aim of advancing toward its objectives. There has been persistent and increasing study of strategic issues. Strategy-as-practice, strategy management, and strategic planning are only few of the many subfields that fall under the umbrella of strategy studies.
This literature study will focus on the relationship between strategic planning and capital budgeting as a means by which managers may accomplish the overarching aim of making wise use of the organisation’s financial resources. Possible solutions to the problems that cause capital projects to be late or over budget will also be investigated.
As Egels-Zanden and Rosen state in their article “strategy is perceived as something practitioners do rather than something that an organisation possesses,” top-level management is increasingly seen as responsible for formulating and implementing the company’s overall direction. Most organisations won’t succeed if their leaders don’t take the time to do strategic planning, which involves considering both the present and future of the company. When you have a strategy in place, you can see the big picture, the steps you need to take to get there, the potential dangers, and the information you can safely disregard. Why and how to carry out strategic planning are topics we’ll go into here. The study of strategy, sometimes known as strategizing, is the essence of strategic planning. It is the goal of academic study to show how the use of different principles of strategy or strategizing in strategy-as-practice, strategic management, and strategic planning has helped businesses improve their resource allocation and bottom lines.
Norton, D. P. (2006) ‘Linking Strategy and Planning to Budgets’, Balanced Scorecard Report, 8(3), p. 6
Prasetio, Patria & Lestari, Dwi. (2020). Strategic Based Budgeting, is it Necessary?. Research Journal of Business Management. 3. 53-56.
Elena,E(2019) ‘Capital Budgeting and Strategic Planning: A Literature Review’