Alberto and Marko Have Just Purchased a Small Soap Manufacturing

question 2

Essay

Alberto and Marko have just purchased a small soap manufacturing company that was having financial difficulties.After a brief operating period,they decided that the company's main problem was the lack of any financial planning.The company made a good product and market potential was great.
Required:
Explain why a company needs a good budgeting plan.Specifically address the need for a master budget.

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Definitions:

Customer Segments

Groups of potential customers categorized based on similar needs, characteristics, or behaviors, targeted in marketing.

Functional Groupings

Functional groupings refer to the organization of business activities or employees within a company based on tasks, roles, or expertise to enhance efficiency.

Product Line

A range of related products offered by a business designed to appeal to a particular market segment.

Organizational Structure

The way in which a company is organized internally, defining the roles, responsibilities, and hierarchy within the organization to facilitate its operations and objectives.