Role of Budgets and Resource Allocation in Implementing and Executing Essay

Role of Budgets and Resource Allocation in Implementing and Executing Strategy - Essay Example Apparently, budgeting ensure that implementation and execution process has been assessed in order to determine amount of resources need for the process. According to Ireland, Hoskisson and Hitt (2009), the budgeting stage of strategic planning is undertaken based on chronology of activities required for achievement of objectives. In fact, this can lead to enhanced processes in the organization such as effective utilization of resources and establishment of effective management practices (Ireland, Hoskisson & Hitt, 2009). Therefore, there is need for understanding budgeting in a systematic way, which is important in realization of processes that are composed such as establishment of objectives, setting targets, monitoring performance and allocation of resources (Spee & Jarzabkowski, 2011). On the other hand there is need for budgeting with aims of addressing particular areas of strategy, which are categorized under implementation plan, organizational change management strategies, stra tegic financial management, and risk management plan. Environmental Sustainability Relate to Implementing and Executing Strategy Implementation and execution of a strategy in an organization is highly influenced by various environmental factors; in fact, strategic planning which entails budgeting considers these effects. For instance, an organization operates in a competitive business environment due to importance of effective strategic environmental planning. In this case, an environmental scan can be undertaken through a SWOT analysis, whereby the analysis focuses on strengths and weaknesses, which forms the internal environment of the organization and threat and opportunities that involve external environment (Spee & Jarzabkowski, 2011). In fact,... Role of Budgets and Resource Allocation in Implementing and Executing Strategy The paper will focus exploring significance of and the role of budgeting and resource allocation, and environmental sustainability to implementing and executing strategy. In this case, an organization formulates objectives concerning their budget, whereby they are focus on ways to reach break-even point within a stipulated timeframe, which is identified to be before completion of their action items. Barr and McClellan (2010) argue that for the purpose of achieving this aim, an organization should acquire sufficient capital, which will enable them avoid scenarios in which expenses surpass income leading to a loss during the process of implementing and executing a strategy (Hill & Jones, 2008). Financials of this institution should be established on the basis of a contingency approach to ensure that unforeseen events do not affect school operations. Nevertheless, in case the financial situation persistently delivers losses, Barr and McClellan (2010) argues that a reconsideration of pri cing policies. This essay focuses on exploring the roles of budgets and allocation of resources to implementation and execution of a strategy. It also explores the interrelationship of environmental sustainability to execution and implementation of a strategy. Therefore, it is evident that allocation of resources has a signification impact on the process of implementing and executing a strategy since managers ensures that there are sufficient financial and human resources to support this process.