Assessment Finance

INTRODUCTION

A business is defined by businessman or economist as an organisation to make profit or maximize profits.Therefore use budgets as a main tool to manage by planning and controlling their corporation objectives,future performances and financial commitments on fixed performance contract.

Due to that fact some business specialists as hope & fraser considerate that budgeting should be abolished by behaviour problems created between managers-staff-customers and business partners in it implementation.

Our work will be to describe and explain hope & fraser concept on budgets and evaluate the reasons that still motive companies or corporations to prepare budgets as a main management tools.And secontly identify budgets weaknesses and how these may be review for the growth of organisation.

1-analyse of hope and fraser statement on budgeting

Budget has been implemented in 1920 by managing cost and cash flows but from 1960 mutated into fixed performance contracts reporting to professors (THOMAS JOHNSON & ROBERT KAPLAN,1991).

Hope & fraser perceive budget as a movement of money inflows and outflows to evaluate whether a financial plan will meet corporation future goals (hope & fraser 2003) therefore need to be

abolished because it’s a major barriers for a best management in this 21st century economy for a long term goal based on relative performance contract including key performance indicators (profits-cash flows-customer utility and quality),benchmark,balanced scorecard and rolling forecasts(adapt to changing market conditions).

They confirm that thesis after researching and investigating companies not using budgets or different manner from 1997 and have argued `abolishing budgets will free up even more of your employees creativity,self motivation and willingness to share information...’(hope& fraser 2003,p1).It’s the case for swedish international bank SWENSKA who has been successful since 1970 taking the...