Question

Think about your own experience within organizational bureaucracies. Give an example from this experience of one successful approach using financial and budget control strategies, and one disaster (bad experience) with financial and budget control strategies. Conclude with a brief summary of why one was successful and the other not. Be sure to use the ideas and language of the text and readings to support your description.

Answer 1

FInancial & Budget Control Strategies are very crucial to any organization, as it forms the base for many fincial-decision making activities. Organiztions tries to control thier costs, and managers tries very hard to achieve the budgetted figures, as these are important for the growth of an organization. one such area of budget control is inventory management.

Inventory management is very crucial to any organization, as it forms a major chunk of working capital requirement in an organization. too much investment in invetory is harmful, so the organization needs to find the optimal number of material (raw material) to order, and for these uses a method called EOQ, which is highly useful.

But inventory management is more of a science than an art, and less inventory disrupts the firms sales. EOQ is ot applicable in all type of organization, and is mainly used for mature organization. if others uses it, the inventory management system will not work properly.