Management & Budgetary Control and the Beyond Budgeting debate Essay

Management & Budgetary Control and the Beyond Budgeting debate - Essay Example During the recent years new ideas have emerged in the business world that challenge the traditional approach to budgeting and claim it not be fit for the current business environment as it is unable to fulfill the demands and requirements. It is both private and public sector that have adopted traditional approach to budgeting since very beginning and they find comfort in tradition even if it doesn’t suit the current business environment. The new ideas are revolutionary they compensate both future financial planning keeping in view non-financial factors that influence the performance and working of the organization (Moolchand, Narendra, & Koshina, 2012). Therefore this changing business world gives rise to the idea of â€Å"Beyond Budgeting† that provides a model beyond command and control towards a more adaptive, flexible and empowering model. Beyond Budgeting is being used to transform the performance potential of the organization it removes the shackles of annual bud get and at the same time allowing the employees to use their full power in the front line. Business environment especially in the past one decade has become much dynamic, complex, turbulent and uncertain. Adaptability is the greatest attribute that the organizations should possess in order to sustain in the market. Life cycles of the products have reduced with the continuous advancement in the technology innovation becomes a critical factor of success for the corporates. These details regarding the business and market environment signify that diversity along with flexibility is important for sustainable growth of the organization. It is not the organizations with huge capital and resources who can survive it is corporates that are adaptable would progress in future. Recent events in the business world raised the comments and the criticism over budgeting system that is in practice currently. It brings rigidity in the system, restricts movement and doesn’t limits

CGI Group, Inc Essay Example | Topics and Well Written Essays - 1250 words

CGI Group, Inc - Essay Example As the essa declares GIB is headed by its founder Serge Godin, who has been serving as both the Chief Executive Officer and Chairman of the Board since 1976. As per GIB’s latest annual report, Mr Godin’s annual salary and bonuses amounted to $810,000. This paper stresses that given that Yahoo! Finance or Reuters does not have a GIB beta estimate, estimate of MSN Money is used. GIB’s beta is currently set at 1.64. This shows the measure of the sensitivity of a stock, bond, or fund to swings of an index or the overall market. In this case, GIB’s stocks are compared with the S&P 500 index and its bonds and bond funds are compared with the Lehman Brothers Aggregate Bond index. Given the GIB’s estimated beta is higher than 1.0 indicates its relatively higher volatility compared to the overall market. As such, it is forecasted that if the S&P 500 moves 10% higher, the GIB stock with a beta of 1.64 should move by 16.4%. As compared to other notable players in the same sector, GIB is less volatile than E-Bay or Amazon.com, which has betas of 2.06 and 2.65, respectively. GIB’s beta of 1.64 is already its leverage beta. This is because the beta derived by MSN Money takes into consideration both the stocks or equi ty of the company as well as the bond and bond funds which are the company’s borrowings. GIB’s debt component is comprised of unsecured revolving term facility bearing an interest equal to the US LIBOR rate plus banker’s acceptance rate of 1.25% plus 1.25%, and senior US unsecured notes bearing an average interest rate of 4.97% and maturing on 2014.