Read the following articles: After reading the 4 articles, write a short theme on the two major problems with budgeting as we practice it today. You can add your own personal experience with budgeting practices.

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Strategic Plans Lose Favor Slump Showed Bosses Value of Flexibility, Quick Decisions 1/25/10 337 BY JOANN S. LUBLIN AND DANA MATTIOLI During the recession, as busi- ness forecasts based on seem- ingly plausible swings in sales smacked up against reality, exec- utives discovered that strategic budget meetings. For Spartan Motors Inc., a maker of specialty vehicles, the recession triggered a massive overhaul of strategic planning. Officials used to draft a one-year strategic plan and a three-year financial plan and then review things," he explains, while speeding up efforts to woo cus- tomers in fresh ways such as through social-networking sites. Mr. Ullman says the bridge plan succeeded, and he cites Penney's improved margins and lack of lavoffs. Next month, he'll THE NEW PORTFOLIO provided by Likes The Ultimate Investment Tracking Tool Available Exclusively for Subscribers THE WALL STREET JOURNAL. WSJ.com USE THE NEW PORTFOLIO NOW Dow Jones Reprints: This copy is for your personal, non-commercial use only. To order presentation-ready copies for distribution to your colleagues, clients or customers, use the Order Reprints tool at the bottom of any article or visit www.djreprints.com See a sample reprint in PDF format Order a reprint of this article now THE WALL STREET JOURNAL JOURNAL REPORTS | Updated July 21, 2013, 4:01 p.m. ET Companies Get Budgets All Wrong The annual budgeting process leads to bad decision-making. It needs a total overhaul. Journal Report Insights from The Experts By KENNETH A. MERCHANT Almost all companies prepare a budget, or annual operating plan. And almost all companies do it wrong. That shouldn't come as a surprise to managers, many of whom are highly critical about both the way budgets are prepared and the 19 19 HARVARD BUSINESS SCHOOL WORKING Knowledge CLICK THIS BANNER TO CLOSE EASY PRINT WINDOW Why Budgeting Kills Your Company HBSWK Pub. Date: Aug 11, 2003 Why doesn't the budget process work? Read what experts say about not only changing your budgeting process, but whether your company should dispense with budgets entirely. by Loren Gary Strategic Plans Lose Favor Slump Showed Bosses Value of Flexibility, Quick Decisions 1/25/10 337 BY JOANN S. LUBLIN AND DANA MATTIOLI During the recession, as busi- ness forecasts based on seem- ingly plausible swings in sales smacked up against reality, exec- utives discovered that strategic budget meetings. For Spartan Motors Inc., a maker of specialty vehicles, the recession triggered a massive overhaul of strategic planning. Officials used to draft a one-year strategic plan and a three-year financial plan and then review things," he explains, while speeding up efforts to woo cus- tomers in fresh ways such as through social-networking sites. Mr. Ullman says the bridge plan succeeded, and he cites Penney's improved margins and lack of lavoffs. Next month, he'll THE NEW PORTFOLIO provided by Likes The Ultimate Investment Tracking Tool Available Exclusively for Subscribers THE WALL STREET JOURNAL. WSJ.com USE THE NEW PORTFOLIO NOW Dow Jones Reprints: This copy is for your personal, non-commercial use only. To order presentation-ready copies for distribution to your colleagues, clients or customers, use the Order Reprints tool at the bottom of any article or visit www.djreprints.com See a sample reprint in PDF format Order a reprint of this article now THE WALL STREET JOURNAL JOURNAL REPORTS | Updated July 21, 2013, 4:01 p.m. ET Companies Get Budgets All Wrong The annual budgeting process leads to bad decision-making. It needs a total overhaul. Journal Report Insights from The Experts By KENNETH A. MERCHANT Almost all companies prepare a budget, or annual operating plan. And almost all companies do it wrong. That shouldn't come as a surprise to managers, many of whom are highly critical about both the way budgets are prepared and the 19 19 HARVARD BUSINESS SCHOOL WORKING Knowledge CLICK THIS BANNER TO CLOSE EASY PRINT WINDOW Why Budgeting Kills Your Company HBSWK Pub. Date: Aug 11, 2003 Why doesn't the budget process work? Read what experts say about not only changing your budgeting process, but whether your company should dispense with budgets entirely. by Loren Gary

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Introduction Budgeting is becoming a major challenge in the recent past due to the inconveniences it is creating to the key stakeholders in different companies There are some issues that connect with ... View the full answer