Question

What is top-down strategic planning? Who is responsible in the planning process of making the ultimate decision?

Answer 1

Business approaches can be divided into two parts which I can use in this specific organisation for properly managing the promotional budget for communication.

Top down approaches

Bottom up approaches

Top down approaches

In this approach budget creation comes from upper management and flows towards the lower level. The budget is followed from the higher management and later it is drop down to the lower management and budget is a lot it into the organisation. While creating the top down budget one should always keep in mind about the returns or investment.

Advantages of top down approaches

Management can take full control of the budget allocations any time required. It is a very streamline type of budget approaching which ensures a company to stay on a streamlined financial track. As everything it decided by the top management of the company in the budget management has skills in it and provides a better return as compared to other budget management strategies.

Disadvantages of top down approach

This type of approach creates the feeling of unfunded mandate in the lower employees. This specific strategy also creates a feeling of frustration in the employees. This also introduces a new ideology in employees mine that the management doesn't know how to spread out budget evenly into the organisation.