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Business Research Methods and Analysis

   

Added on  2020-01-21

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BUSINESSFINANCE1
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Table of ContentsINTRODUCTION................................................................................................................................3PART 1..................................................................................................................................................31. A understanding of the purpose and objective of preparing a budget for business like Emilia's 32. Explaining the the application of traditional budgeting approaches to a business such as Emilia’s............................................................................................................................................43.Analysing whether a traditional budgetary system is appropriate to the business in its present form..................................................................................................................................................5PART 2..................................................................................................................................................64.An understanding of alternative budget systems..........................................................................65. The potential application of the alternative budget system methods to Emilia’s .......................76. Analysing whether one of the discussed methods (or a combination) would be more appropriate to Emilia’s ....................................................................................................................9CONCLUSION..................................................................................................................................10References...........................................................................................................................................112
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INTRODUCTIONBusiness finance is term that involve broad range of functions and disciplines turning aroundthe administration of money and other worthy assets. Without the availability of finance,nocompany can continue its operations. In addition to this aspect, to assure production and distributionof wide range of offerings, business needs monetary resource which is regarded as business finance.Thus, business finance is refereed as life blood of any company. The business finance is mainlyused to meet fixed and working capital requirements( Zikmund,Babin,Carr,and Griffin, 2013).Furthermore, it can be stated that business finance is important functions which is related with theacquisition and conservation of capital funds in attaining financial requirement and overall strategicaims and purpose of company. In this report, various aspect of business finance will be studied in the context of providedcase study of Emila healthcare management. It is private hospital established in 1954. It furtherrender range of non urgent outpatient treatment including diagnostic, psychiatric and clinicalservices . In this report, learning will be shown regarding the objective of developing a budget forhealthcare business. Thereafter, learning regarding traditional budgeting approaches to developbusiness will be shown. Further, understanding regarding alternative budget system will beprovided. PART 11. A understanding of the purpose and objective of preparing a budget for business like Emilia's Budget can be refereed as quantitative manifestation of a plan for particular period of time.It may involve planned sales volume and profit, quantity of resources etc. A budget isapproximation of the revenue and expenses over a particular future period of time and is compiledand re-evaluated on a periodic basis. The Emila health care management prepares budget withdifferent purpose. The main objective of preparing budget is that it help in allocating resources tovaried activities and functions ( Arrfelt,Wiseman,2015). Thereafter, budget is prepared to predictincome and expenses in future on the basis of which company can facilitate decision making. Further, Emila healthcare management use budget to monitor business performance. Itcompare the forecast business performance with actual performance and estimate whether abusiness is making profit or not. On the basis of this aspect, company can determine whether entityis meeting the expectations of top executives or not. Other than this, the main objective of preparingbudget by Emila healthcare management is related to management and control resources and theiruse. Such as, in case of cost budget the actual performance is more than planned one. In that case,3
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company can identify the areas where they are spending more than needed (Asongu, 2016).Therefore, by identifying wasteful expenses and making changes in spending level, company canimprove the efficiency of business thereby using funds in right direction (Cassar and Ittner, 2015 ).Furthermore, with the help of budget Emila healthcare management can control its spendinglevel. Since it enable company in keeping a follow up where monetary resources are used and stickto plan business can prevent itself from going into financial obligation. Therefore, entity willconsciously determine where to use funds. Overall, it assist the business of Emila to make effectivefinancial decision by assuring the expenses of business matches the priorities.(Activity basedcosting, 2012). Thereafter, entity can ascertain the bottleneck areas of business it can cut downexpenses. The financial resources are limited however, they can be optimally used and managedthrough budget. In this respect a specific budget renders information regarding how much businesscan incur every month. Thereafter, to facilitate the attainment of financial objectives, it is importantfor finance manager of Emila health care to prepare a budget (Chang and Fung, 2016 ). The anothermain objective of preparing budget is that it assist in wealth building. It permits the entity to saveand start investing funds. By following the budget, entity can assure there are no idle funds inbusiness which are not needed and if it is so than they can be invested in fruitful areas.( Zikmund,Babin,Carr,and Griffin, 2013). Thereafter, budget also act as base for developing futurepolicy. Thereafter,budget is communicated to different departments so that efforts are put in specificdirection only. Hence, budget act as a tool for communication and coordination and thus help inimproving the effectiveness of business. 2. Explaining the the application of traditional budgeting approaches to a business such as Emilia’sTraditional budget is the budget where company allot money when financial situation occurssuch as rent, overheads, entertainment, and more. This budget is used when you have to spendyour income with plan. Many company adopt this budgetary system one of the company(hospital)has been taken this is St. Emilia. But at present situation this hospital is facing a problems inexpenses related to past year budget and it effecting on present year budget also( Tirole,2010).Thecompany start this system because it manage the expenses and expense not exceed with the income.By using this budget and with proper planning St. Emilia can solve all the obligations.Company use budgetary system to flow of their work where in some cases traditional budgetarycreates problem also it takes very long period of time in starting of the month this budget is for nouse then it will use at the end of the month and when the budget is fixed it's like THE END it meansthen no chances can be happened( Phelps ,Webb and Koh,2011).Economy, industry, marketingfactors also effect the budget system. Apart from them, managers of St. Emilia should concentrate4
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