Any Article About Any Company Budgeting (Apple Company)

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Budgeting
Apple is the largest tech company in the world and they have had a line of successful products that have revolutionized the tech industry. The company which started a few decades ago has consistently been innovative and introduced products that not only improve the quality of our lives but also reassert their position as a company wheeling for a greater future. In an article published by CITATION Bus17 \l 1033 (Business Insider, 2017), the CFO discusses the plans the company has taken in aligning their strategic vision by investing $10 billion in research and development. The money is not necessarily channeled into profit making ventures but in those products the company perceives to be the future drivers of the technology industry. Thus, the budget details how the money will be channeled to develop cutting edge technologies in the respective projects they are betting on. There are a couple of lessons a person can derive from the budget which is rooted in strategic objectives of one of the greatest companies in the 21st century.
An important lesson from the Apple’s budget is it is important to invest in research and development. The company is budgeting on how to diverse their operations and retain or improve their market share on existing product lines. It is imperative to improve the quality of your products and offer your clientele new innovative products designed to improve their lives. Research and development projects featured in the article are primarily meant to diversify the operations of the company and maintain its dominance in the market. Without innovation, the company would soon run out of new products and lose their market share grip which will lead the company to losses. The magnitude of the budget issued to the research and development team shows the significance of venture to one of the top performing technological company of our century.
The hierarchical distribution of resources shows an important lesson which a person can derive. Distributing resources to various departments and allocating what’s necessary to carry out their functions streamlines the decision making process and resource management for the managers. The head of each research and development unit is responsible for equitable distribution of resources as per their budget allocations. Thus, the decision making process becomes centralized to a specific department without requiring a lengthy structure involving the top management.
The report is funded in stages and the aforementioned figure is focused on the current year. The financial year is further divided into four quarters of which the payments are disbursed to the various departments that handle the actual research activity. The staged budget plan allows for flexibility in sustaining the programs going forward. There is always an element of unpredictability with the operations of a company due to external and internal elements and thus a proper budget must be structured to accommodate these unforeseen occurrences. Thus, in t...