The budgeting and reporting process of a multinational organisation across regions and trade centres
Robusti, Fiorenza (2012)
Robusti, Fiorenza
HAAGA-HELIA ammattikorkeakoulu
2012
All rights reserved
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2012100714226
https://urn.fi/URN:NBN:fi:amk-2012100714226
Tiivistelmä
In the contemporary international business environment, a multinational organisation faces great challenges when it comes to budgeting and reporting. The complexity of budgeting and reporting is even greater when it implies the coordination of budgets and reports of trade centres located in other countries than the country of origin.
A multinational organisation often adopts the participative budgeting method. The purpose of participative budgeting is to involve managers at lower managerial positions, to spur commitment and acquire deeper knowledge. Nevertheless, participative budgeting is complex, time consuming, and risky.
In 2011 in Finpro a new budgeting approach was implemented alongside with new reporting guidelines. The new approach shifted the perspective from the finance department to the regional divisions. However, it appeared that no matter how the system is strengthened, barriers at country-level are likely to arise. Consequently, it is necessary to constantly analyse and enhance budgeting and reporting.
The purpose of this work was to analyse the results and feedback of the newest budgeting process. The study, research-oriented, was performed between January and July 2012. The research was of a qualitative type; hence, the collection of primary data was engaged via in-depth, semi-structured interviews. The study focused on the Western Europe and North Africa region of Finpro. The interviewees involved in the investigation were six covering various managerial levels.
The outcome of the data analysis, based on content analysis, revealed that the enhanced budgeting and reporting process implemented in 2011 were more efficient and effective. It is deemed, as proven from the data collected through this study, that to a certain extent, the commitment and involvement of managers increase proportionally with the increase in responsibility.
A multinational organisation often adopts the participative budgeting method. The purpose of participative budgeting is to involve managers at lower managerial positions, to spur commitment and acquire deeper knowledge. Nevertheless, participative budgeting is complex, time consuming, and risky.
In 2011 in Finpro a new budgeting approach was implemented alongside with new reporting guidelines. The new approach shifted the perspective from the finance department to the regional divisions. However, it appeared that no matter how the system is strengthened, barriers at country-level are likely to arise. Consequently, it is necessary to constantly analyse and enhance budgeting and reporting.
The purpose of this work was to analyse the results and feedback of the newest budgeting process. The study, research-oriented, was performed between January and July 2012. The research was of a qualitative type; hence, the collection of primary data was engaged via in-depth, semi-structured interviews. The study focused on the Western Europe and North Africa region of Finpro. The interviewees involved in the investigation were six covering various managerial levels.
The outcome of the data analysis, based on content analysis, revealed that the enhanced budgeting and reporting process implemented in 2011 were more efficient and effective. It is deemed, as proven from the data collected through this study, that to a certain extent, the commitment and involvement of managers increase proportionally with the increase in responsibility.