Evaluating the Impact of Traditional Budgeting on XYZ Ltd

This report investigates the impact of traditional budgetary control on the profitability of XYZ Ltd, employing a qualitative research methodology with an inductive approach. Data was collected through questionnaires distributed to key personnel, including the CFO, production and sales managers, and the CEO, using simple random sampling. The conceptual framework identifies factors like lack of planning, coordination, and monitoring as key influences on budgetary control and organizational effectiveness. Thematic analysis was used to analyze the data, revealing that while there is awareness of budgeting concepts, traditional budgeting methods are perceived to have limitations affecting profitability. The report also addresses ethical considerations, reliability, validity, and research limitations, ultimately providing insights into the challenges and benefits of traditional budgeting within the context of XYZ Ltd.

The Impact of Traditional Budgetary
Control On the Profitability of XYZ Ltd

TABLE OF CONTENTS
CHAPTER 3- RESEARCH METHODOLOGY.............................................................................3
Introduction.................................................................................................................................3
Research Strategy........................................................................................................................3
Research approach & philosophy................................................................................................3
Sampling Procedure....................................................................................................................4
Conceptual Framework...............................................................................................................4
Qualitative Research – Factor Definition....................................................................................5
Data and Data collection.............................................................................................................5
CHAPTER 4: DATA ANALYSIS..................................................................................................6
CHAPTER 5: CONCLUSION AND RECOMMENDATIONS...................................................23
REFERENCES..............................................................................................................................28
APPENDIX....................................................................................................................................29

CHAPTER 3- RESEARCH METHODOLOGY
Introduction
Research methodology is related with having the specific procedure that is taken into consideration for identifying, selecting.
Processing and evaluating information about a particular subject matter. The current study will involve research strategy, sampling
procedure, conceptual framework, data collection, evaluation technique, etc. so that significant understanding can be derived.
Research Strategy
There are basically two types of the research which can be taken into considerations by the organization in respect to gain the
proper understanding for accomplishing the objectives which involves qualitative and quantitative. The qualitative type of study is
widely taken into process for collecting the theoretical study. Quantitative type of research is used to get the numerical & fact based
data. For the current study regarding impact of traditional control on profitability is theoretical concept so that significant ability gain
relevant & reliable information can be derived. This has permitted the scholar to get the understanding about theories and framework
in turn depth knowledge to meet highlighted objectives can become possible. Qualitative research type is highly taken into procedure
by the businesses for gaining the proper understanding for ensuring that reliable report can be formulated. Ascertaining impact of
budgetary control over the revenue system and mitigation strategy to overcome the challenge of significant negative of variation
between actual performance & budgetary planning can be exerted in effective manner. Collection of non-numerical data for this
purpose can allow to get the accurate and fair understanding about the research in assessing accurate impact on profitability due to
traditional budgetary control can be derived.
Research approach & philosophy
Inductive and deductive are the two research approaches which can be taken into process for understanding the process taken
into consideration for carrying out the research. For recent study the focus has been provided on having utilization of inductive
approach so that appropriate conducting of research can be exerted. There are two form of philosophies such as Interpretivism and

positivism which aids in meeting objectives in accurate manner. Interpretivism is suitable in order to asses the impact of traditional
budgetary control on profitability of specified organization.
Sampling Procedure
Sampling is basically selection of group from the total population in order to collect the accurate and reliable data from
suitable people. There are different kinds of the technique which can be taken into procedure for collecting data from the sampling
size that involve probability and non probabilistic. In order to collect the data from the selected groups such as CFO, production, sales,
procedure manager and CEO. These have been selected by simple random sampling technique which is part of probability precise
views and opinion regarding the impact of traditional budgeting on profitability can be ascertained. This is helpful in gaining the non
bias information in respect to get the significant ability to evaluate impact of traditional budgetary control on profitability of
mentioned enterprise. In order to conduct the research in highly effective manner utilization of simple random sampling aids scholar to
ensure that bias based behavior can be avoided. The main reason behind such benefit is that there is involvement of selecting
participants on random basis via eliminating aspect of giving preference to anyone. This contributes in achieving relevant information
about the prevailing circumstance so that meeting objectives and assessing answer to research questions can be done.
Conceptual Framework
Has impact on
organizational
efficiency &
effectiveness
Traditional budgetary control
Have
influence on
profitability Change
Factors
 Lack of Planning
 Lack of co–
ordination and
management
 Monitoring the
Financial
condition

Budgetary control (dependent variable)
On the basis of the above prepared conceptual framework it can be identified that these are the main causes which is leading
to impact the budgetary control. This is affecting the profitability of XYZ in adverse manner. It is important in gaining significant
knowledge about the aspects regarding which are the root causes that is impacting traditional budgetary control and affecting the
profitability of enterprise . In order to get accurate ability to influence profitability in positive pattern it is important to give focus on
these aspects so that higher ability to get positive outcomes can become possible. The reason behind considering these as lacking
aspect as ineffective planning coordination & management and irrelevant level of monitoring hampers functioning of enterprise.
Qualitative Research – Factor Definition
Factors Phenomenon
 Lack of Planning This can be measured by ability of firm to
conduct operational practices
 Lack of co–ordination and management level of outcome derived on profitability
Impacts

 Monitoring the budget Improvement actions conducted.
Data and Data collection
Data collection is gathering the information for attaining the research questions in effective manner in turn reliable
formulation of study can become possible. There are two ways in which data is collected such as primary and secondary that permit
receiving significant level of data in turn attaining objectives can become possible. The primary method is related with gathering
information particular for the specific topic which has not been utilized before. This can be done via using methods such as
questionnaire, interview, observation n and focus group. For the present research report, researcher has paid attention on spreading
questionnaire to the selected sampling size in respect to gain insights about their views, opinion and experience regarding impact of
traditional budgetary control on profitability of firm. Secondary research is associated with using articles, journals and books in turn
ability to support the collected data can become possible. These both specified method has been helpful in meeting the objectives of
achieving relevant and reliable information to conduct study.
Data analysing methods and techniques
For the purpose of analyzing the data, there are two ways of the techniques which is widely taken into procedure by the
scholar that comprises thematic sampling technique and SPSS. For the qualitative study the thematic perception test technique is
suitable which is related with referring to the response gathered through survey, graphical presentation so that findings can be
supported to LR. On the other side, SPSS is used for having descriptive statistics, regression, correlation, etc. in addition to this, it
can be interpreted that current study has taken thematic analysis into consideration for achieving appropriate information in tun better
reliable formulation of report has become possible.
Ethical consideration

There are various ethical requirements which are required to be taken into consideration by the researcher in respect to give
emphasis on developing fair research. For this purpose the consent form has been signed by the targeted audience. Data has not been
copied and maintained privacy details of targeted audience. This has lead to conduct fair & reliable study to meet objectives.
Reliability and validity
For maintaining the reliability & validity of the research scholar has given emphasis on using the latest sources, no alteration in
data gathered, and copy right sources utilization. This is helpful in making the significant report in turn achieving appropriate
knowledge to meet aim of study has become possible
Research limitation
The research limitations comprise time, access to resources and availability of limited monetary source. This has been highly
considered by scholar for meeting accurate knowledge via ensuring optimum utilization of resources o that better outcomes can be
offered.

CHAPTER 4: DATA ANALYSIS
Reliability test
Case Processing Summary
N %
Cases
Valid 100 100.0
Excludeda 0 .0
Total 100 100.0
a. Listwise deletion based on all variables in
the procedure.
Reliability Statistics
Cronbach's
Alpha
N of Items
.725 12
Statistics

Q1. Are
you
aware of
using the
concept
of
budgeting
within the
business?
Q2. Does
your
company
undertake
the use of
budgeting
for making
the future
projection?
Q3. What
does
traditional
budgeting
involve?
Q4. Why
is it
important
to have
budgetary
control
within the
company?
Q5. What
is the
impact of
using the
budgeting
system
over the
company
and its
efficiency?
Q6. What
are the
benefits
of using
traditional
budgeting
system?
Q7. Is
there any
drawback
of using
the
traditional
budgeting
methods?
Q8. From
the
following
what are
the
different
drawback
which
company
faces by
using
traditional
budgeting
system?
Q9.
Which
method of
budgeting
is better
from the
following?
Q10. In
case
company
undertakes
the use of
modern
budget,
then what
is the
impact over
the
profitability
of
company?
Q11. Do the
modern
budgeting
tools assist in
keeping
proper track
of
expenditure
and reduce
the variance
in actual and
budgeted
performance?
Q12. What
are the
benefits of
using the
modern
budgeting
tools and
techniques?
N Valid 100 100 100 100 100 100 100 100 100 100 100 100
Missing 0 0 0 0 0 0 0 0 0 0 0 0
Mean 1.4400 2.9700 1.5400 2.7000 1.4600 1.7800 1.4400 2.7200 2.3700 1.6400 1.4400 2.7000
Median 1.0000 2.5000 1.0000 3.0000 1.0000 2.0000 1.0000 3.0000 2.000 2.0000 1.0000 3.0000
Mode 1.00 2.00 1.00 4.00 1.00 1.00 1.00 4.00 2.00 1.00 1.00 4.00
Std.
Deviation .49889 1.39592 .67300 1.13262 .50091 .92747 .49889 1.15540 .97084 .67450 .49889 1.13262
With the help of the above descriptive statistics it is clear that there are 100 sample who have answered the questionnaire. With this
analysis it is clear that on an average majority of people are having awareness relating to the budgeting within the company. also, it is
evaluated that company is undertaking the use of budgeting to forecast and measure the performance of the company. further it was
analysed that for using the traditional budgeting the use of past data is undertaken for the preparation of the budget. Moreover, it was
evaluated that on an average most of the people states that traditional budgeting has less impact over the profitability as there are many

drawbacks of using the traditional budgeting. Moreover, descriptive statistics stated that the most frequently used budgeting tool is
the zero based budgeting.
Frequency Table
Q1. Are you aware of using the concept of budgeting within the business?
Frequency Percent
Valid
Yes 56 56.0
No 44 44.0
Total 100 100.0

Interpretation- with the analysis of the above primary data gathered it is clear that there is awareness present relating to the concept of
budgeting. This was agreed by majority of respondent that is 56 % that they are aware of the concept. However, the remaining
respondent that is 44% states that there is no awareness relating to the concept of budgeting.

Q2. Does your company undertake the use of budgeting for making the future projection?
Frequency Percent
Valid
Strongly agree 14 14.0
Agree 36 36.0
Neutral 9 9.0
Strongly degree 21 21.0
Disagree 20 20.0
Total 100 100.0