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Jack and Brian have been friends since early school days

Accounting

Jack and Brian have been friends since early school days. Jack heads the operations of Bowen Metals Inc. in the USA, and Brian is the Chief Operating Officer at Kruger Accessories, also headquartered in the USA. Bowen Metals is a multinational corporation, catering to over 40 business customers across the globe, while Kruger Accessories is a strictly domestic company, servicing only local customers. Meeting over dinner, Jack and Kruger started discussing work related issues at their respective organizations, and the common concerns that emerged were all related to budgeting. During this discussion, they realized that the different nature of their customer base and geography they serve makes it difficult to borrow the budgeting strategies from each other’s organizations. Why do you think Bowen Metals and Kruger Accessoies cannot possibly mimic each other’s budgeting plans?

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Given: Jack heads the operations of Bowen Metals Inc. in the USA, and Brian is the Chief Operating Officer at Kruger Accessories, also headquartered in the USA. Bowen Metals is a multinational corporation, catering to over 40 business customers across the globe.

Reasons why Bowen Metals and Kruger Accessories can't mimic each other's budgeting plans:

Various Objectives:

Planning is the most principal step while getting ready to prepare budgets. They set out a detailed analysis of what the executives want to accomplish as far as organisations targets. While if there should be in case of Jack, the proposed objectives can be of extending to more nations, in the event of Brian, their principal focus is to reinforce the domestic market.

Inspiration:

Budgets give a direction to accomplish the executives' goals. At the point when the budgets are set, every supervisor is provided with explicit targets. In the case of Brian, the particular objective could be either to begin a development cycle or increment domestic market. While for Jack, it could be to strengthen worldwide business sectors or increment worldwide presence. Since budget targets of both the organizations are extraordinary, they can't adjust budgetary objectives of both the organizations.

Operational budgets joined with money related financial plans:

We as a whole know concerning how operational budgets go hand in hand with money related standing of an organization. Since Jack's organization is a worldwide organization, it might be conceivable that its budgetary foundation, for example, funding, debt-equity ratio perhaps totally different from that of Brian's. Henceforth, it is a likely motivation behind why both can't adjust.

Competition :

While Jack's organization targets strategising worldwide competition, Brian's organization manages the domestic competition. Methodologies to adjust the competitive environment in both worldwide just as the domestic environment is different.