New Strategic Thrusts

3. Explain two methods that can be used in order to identify realistic estimations when developing a budget. [2.2]

The initial allocation of resources was spent to build our automation in order to lower costs associated with employee wages and high turnover rates. We were able to achieve this with pin-point accuracy, and narrow in on the market.

To organize and prioritize the current and future projects in the pipeline in a way that fits into the PMB budget of $5B, and ensures projects that increase sales, growth, and stockholder value are of top priority, whereas projects that are not beneficial are either put on hold or discarded.

3. Explain two methods that can be used in order to identify realistic estimations when developing a budget. [2.2]

Budgets and Planning. To begin with, the program, like the organization, fosters an open and collaborative environment for the process to take place. In this regard, it is, therefore, impossible for any one space or environment to be able to accommodate every conceivable project or application that is “thought up”. Therefore, certain perimeters and guidelines need to be established to assess costs with the program and help determine a course of action in future planning. As we are discussing costs, we assume there is a

Investopedia defines Budget as an "estimation of the expenses and revenues over a specific future period of time. Budgets can be made for a group of people, family, person, country, business, government, organization or anything else that makes or spend money. The budget is a micro economic concept that shows the trade-offs made when one good is exchange for another." When looking at the year 9 budget for CB first thing that jumped out at me was the sales goal of 3510 is a 5247450. This is my first immediate concern considering that the storyline has clearly stated it is a down market due to the

* Complete all housing design and renovation projects no more than 8% over the established baseline cost or schedule

Mr. Masi responds because the past two years being positive, we have invested a total 30 million dollars in infrastructure. For Ex. In order to accommodate the number one trauma center and keep our trauma accreditation at Ben Taub. LBJ and Ben Taub were open in 1992 and very little upgrades and renovations were done to those hospitals. There are some items that need to be addressed and we are playing catch up. Also, technology has changed so dramatically, the power is not the same as it was several years ago. Back then we did not have computers all over the place using needing more power sources. We have invested eighteen million dollars alone in Ben Taub to provide the power source that will carry the hospital forward for another twenty-five years. We are making similar upgrades at LBJ, 100% upgrade at ten percent at a time. We spend an estimated sixty million dollar every year for upgrades to infrastructure. The phone system alone for example that is now very antiquated is a three million dollar investment, just to replace all the phone systems because the exchanges can no longer handle the volume. The same phone system we had twenty-five years ago and we are now just getting to replace. Member asks if sixty million is spent every year on capital improvements and IT. Mr. Masi responds: medical capital, every piece medical equipment, x-ray machines, laboratory equipment and etc., beds, IT equipment, and capital construction (building and grounds work) comes out of that

2. Evaluate Gordon Biersch's organizational alternatives to realize its growth ambitions. Recommend a course to follow?

1) What should you do next? What are some of the options at your disposal to ensure that you do not alienate your colleagues?

Strategic planning can dictate the success of any organization if properly planned as well as the failure of an organization if not implemented as planned. Strategic planning is all about making choices. It is a process designed to support leaders in being intentional about their goals and methods. Simply stated, strategic planning is a management tool, and like any management tool, it is used for one purpose only—to help an organization do a better job. This portion of the strategic plan will explain why an

Budgets serve five main purposes; planning, facilitating communication and coordination, allocating resources, controlling profits and operations and evaluating performance and providing incentives. The budgeting process requires both technical and interpersonal leadership skills to achieve each of these purposes effectively. The director’s memo demonstrates several short comings in the budgeting process. The director instituted the “responsibility accounting system” as a means of evaluating performance. However, the DPW director has not consulted Sam in the budget process. Sam understands that his total expenditures are impacted by relatively unpredictable events that contribute to an uncontrollable element of his cost. The

activity in its flexible budgets. During July, the company budgeted for 7,900 units, but its actual level of activity

A: Well, the projects at ModMeters would be to rework the entire IT budget without sacrificing manufacturing’s money (department that brings in most money), they also need to prepare to expand globally with new equipment and expanding architecture, along with getting new programs that talk better with each other and a new website. They need to be prioritized by which makes the most money in the quickest amount of time. Businesses cannot afford to waste time because it is directly connected to their finances. And again, they need to be budgeted by what benefits the company most. If it’s the manufacturing department that is their huge moneymaker, than they need to continue to feed manufacturing with cash. The budget has to be built around what ModMeters successful.

Answer 2. The first problem that is going to arise while implementing the strategy is the resistance form the divisions, so it is required to convince the departments