Week 6 Assignments Assignment 6.1 Creating an Organizational Budget Presentation *

| June 5, 2016

Week 6 Assignments Assignment 6.1 Creating an Organizational Budget Presentation

(Total 70pts) Part 1 (50pts) Due by Thursday (Midnight, CST) of Week 6 Part 2 (20pts)
Due by Sunday (Midnight, CST) of Week 6 Part 1 (50pts) Due by Thursday (Midnight,
CST) of Week 6 Prepare a short presentation that includes the following (minimum): (1)
assumptions you made to arrive at your numbers, 2) justification for any major changes
in expenditures – e.g., adding or deleting items, capital requests, (3) any problems or
concerns you have regarding your budget, including your reaction to budgeting using
two scenarios, (4) explain the changes in activities as a result of the increase or
decrease in the budget. CREATING A BUDGET Your first task is to develop a budget for
next years operation of your department. Some relevant information is provided below;
also provided is a spreadsheet showing last years budget. Develop two budgets for
next year. One should be based on an optimistic scenario (companys revenues grow at
or above goals); specifically, the company will grow by 15%, and you need to plan what
changes your department will need to make to support this growth. The second budget
should be based on a pessimistic scenario (companys revenues below goals);
specifically, company revenues will shrink by 15%, and you must plan the changes your
department must make given lower revenues. Use the spreadsheets listed under
Budget Exercise -Enter your budgets onto the spreadsheets; show relevant percentage
changes from last year. BACKGROUND & SCENERIO You are the manager of the
Management Consulting Department of General Interconglomerate Corporation. The
departments mission is to support functions throughout the corporation by providing
training, recommendations, and advice on management issues. The department
accomplishes this by offering standard training courses to meet special needs of
customer groups and by consulting as needed on special issues. Both the training
courses and the consulting services are offered on-site at the corporations five offices
(Seattle, Denver, Toronto, Rio de Janeiro, and Omaha). 2 Department staff includes six
consultants, one administrative assistant, and you – the manager. In a typical month,
each consultant spends about two weeks on the road, traveling to branch offices to
either consult or conduct training (split about 50% consulting – 50% training). When not
on the road, consultants spend about a third of their time conducting training or
consulting at headquarters (split about 75% consulting, 25% training); about half of
home-office time is spent writing reports to document consulting advice, and the rest of
the time goes toward new course or consulting concepts (including research as well as
development). The administrative assistant coordinates communications between
customers and consultants, polishing and printing reports for distribution, printing
training materials, distributing training schedules, etc. Department offices are located in
corporate headquarters in Omaha. Equipment currently used by the department
includes eight pcs networked with "works" type software (word processor, spreadsheet,
database, group calendar, e-mail); one of the pcs (assigned to the admiinistrative
assistant) has desktop publishing capability, used to create professional-appearing
workbooks for trainees in the departments training courses. The administrative
assistant requested a $500 software upgrade for increased publishing capability. There
is one heavy-duty photocopy machine and a fax. One of your staff members is taking a

business class at Bellevue University; she has informed you that she worked on a
project with another student who has a notebook-type computer, and she thinks that
notebooks could allow consultants to be more efficient on their many trips to branch
offices. Notebooks currently cost $1000 per notebook. CURRENT SITUATION
Department workload has been fairly constant. Lately there has been a steady demand
for the consulting and for the training classes offered by the department. Just about
every department in the company signed up for the five-course TQM sequence last
year. You currently have two consultants working on development of the departments
new course, tentatively titled "Competitiveness for the 90s", a 3 course follow-on to the
popular TQM training; the first classes in "Competitiveness" will be ready the second
month of the fiscal year. Consulting demand this past year has been largely for TQM
implementation support. You expect some slacking of this as more departments get into
a "maintenance mode" on TQM; you wonder if you should initiate something to assure
TQM doesnt fade away. You also wonder whether you should develop new consulting
specialties to supplement your standard repertoire: TQM, conflict management,
organization structure, dealing with downsizing, and creative problem-solving. You
currently measure department quality by surveying (1) all company managers, (2)
managers who have recently used the departments services, and (3) your consultants.
Responses have averaged (on a 5-point scale) 3.8, 4.0, and 3.5 respectively. Quality
numbers have been stable. The one area with an unfavorable trend is a recent users
assessment of departments responsiveness (timely response to service requests):
Response averages were 3.9 last year, 3.7 six months ago, and 3.5 last month.
GUIDELINES FROM CORPORATE The comptrollers department has provided some
guidelines for all managers to use in developing next years budget. The board of
directors told the comptroller they want to see overall revenues increase by 10%. Some
of the increased revenue would be directed toward future growth of the company, some
would be returned to stockholders, and some will be shared with employees.
Specifically, profit-center departments (travel) are to plan to achieve 10% 3 revenue
growth, or higher, while holding cost increases to 8%; cost-center departments (office
supplies) are to hold their cost increases to less than 5%. Any other capital budget
(equipment) items are to be proposed separately from the operating budget. The $500
software upgrades forthe administrative assistant and notebook purchase have been
approved. In a separate instruction, the human resources department announced that
corporate guidelines for next years salary adjustments call for a 4% cost of living
increase on the average. However, this depends upon a revenue increase or decrease.
Bonus plans havent been announced. Previous bonuses have averaged 4%. HR also
indicates that group insurance rates will increase by 7.5%. Your assignment is to create
a narrated PowerPoint Presentation. The PowerPoint narration instructions can be
found in the Assignments/Week 6 tab. Your presentation should be 3–5 slides (approx.
4-5 minutes in length). Ensure you have a good introduction, discussion, and
conclusion. Attach your narrated PowerPoint presentation as a reply to Discussion
Board 6.1 (max size >120mb). NOTE: You Need the Excel Spreadsheet to Complete
This Assignment Part 2 (20pts) Due by Sunday (Midnight, CST) of Week 6 Each student

will creatively critique/coach two presentations. Your critique/coach will have (as a
minimum) five items you thought were good and five areas for improvement. Explain
why they were good or need improvement. You will also comment on their Budget.
Please select a presentation that has not been critiqued/coached.

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