Chapter 1 Budgeting and Financial Planning Part 1 context of use and Purposes of Budgeting 1.1Â External drivers of change Todays business environment is a beingness of never-ending change. In recent years, its pacing and magnitude sop up been accelerating, deliverance ever greater challenges for organizations. Social, economic, technological, and policy-making pressures be bringing greater rivalrous opportunities and threats to businesses. And the demands of their stakeholders (the sh beholders, customers, suppliers, employees, and society) are as well as increasing. These immaterial drivers of change are the forces that are shaping the strategies and capital punishment of modern businesses. External drivers of change are beyond the ascertain of any single market player. You need to identify the international drivers relevant to your companys market position. They are the forces and context which will course your companys strategy. Focusing on external driver s will ensure that your strategic responses will make the greatest impact and will withal define where information is needed. Each year new markets are blossom outing and existing markets are growing. Globalization is a major(ip) driver of change in markets.
It is the opportunity for businesses to expand their activities end-to-end the world and take advantage of wider customer bases, economies of scale, and other emulous advantages. But it also means that existing markets are reach to challenge from any global competitor. Today, it is no longer hum to be the best in your locality. In the long run, pick ou t depends on companies achieving and sustain! ing world-class performance. Globalization enables and drives the need for larger growth ranges and more(prenominal) frequent product introductions. It also enables the competitive advantages associated with different geographic areas to come into play. Competitive advantages may include more quickly available raw materials, particular expertise, or dirt affordable labor. These may outweigh the advantage which indigenous...If you want to get a full essay, order it on our website:
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