Why Does a Company's Budget Need to Be Closely Linked

question 27

Essay

Why does a company's budget need to be closely linked to the needs of good strategy execution? Provide at least two examples of companies that have used strategic priorities to drive how capital allocations are made.

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Definitions:

Deliver

The process of transporting goods from a source location to a predetermined destination, fulfilling customer orders or supply needs.

Milk Runs

A logistics strategy where a single vehicle collects loads from several suppliers in a single journey, optimizing transport efficiency and reducing costs.

Supply Chain

The network of organizations involved in producing, handling, and distributing goods or services from production to the end consumer.

Cost

The value of money that has been used up to produce something or deliver a service, and hence is not available for use anymore.