案例分析reprt

The Case of Data-net’s Annual Budget
Introduction
Data-net is a new regional level subsidiary brand of Kurzon Group Ltd, a large UK based telecoms provider. Kurzon has been offering the best service and products at higher prices, catering mostly to large families with moderate to high incomes. Senior executives at K have decided to launch several new subsidiary brands, offering economy priced telecoms services and products to enter the market of smaller families, lower incomes households and light users of internet and telephone services.
My colleagues and I have opted to join the new brand, Data-net, to help with the development of this company.
Terms of Reference
My colleagues and I will allot the entire 6,000,000 for the best interest of the company, and ensure that the budget is fairly allotted to meet the essential cost of all five functions. Also, we will provide funding for each expense respectively.
How to Allocate the Funds
First, we think about the emphasis of the funding allocation among the five functions,and decide to meet the financial needs of operation department as much as possible. Because this department decides this company’s core competitiveness. We use method of weighting to analyze the allocation of funds in each department, and different number of stars represent the different weigh of departments.5stars means 100%, so each star presents 20%.
I use the following formula to calculate the funds of each department:
Y= (Max-Min)*f0+ Min Max ----upper limit of department capital requirement
Min-----lower limit of department capital requirement
f0---------(the number of stars)*20%
According to the formula, I reach the following results: Appendix1
We can see that the operation department get in total, which is very close to the upper limit of the funding needs. So we finally achieve the goal to give operation department plenty of money.
Next, I will show you how to calculate the specific expenses in each department. Also, we have aformula:
(Y-Min)*f+ min Y ----the fund of each department
Min-----lower limit of department capital requirement
min----lower limit of each expense
f the weight of each expense accordin
g to their importance
For example, here is the funding allocation for each expense in Human Resource Department. A ppendix2
You might have already notice that staff salary and fringe benefits are not shown on this graph. That’s because we consider both of them as basic expenses in all five departments and relatively high wages can encourage staffs to work hard.So we give staff salary 25%and benefit fringe 20%as their weightings for all functions.
The result will be showed in next part.
Allocationof funds
1 Human Resources Advisor
1.1Change management consultant fees
Whether the employees from Kurzon can quickly adjust to the change of employment decides whether the company can operate effectively.
1.2 CIPD training
Human Resources Advisors’ CIPD identification mainly contribute to the mid-term and long-term development. So considering that Data-net is a new company, we put it on this level.
1.3Travel expenses
Data-net is a regional company and has a short distance away from the head office, so the travel expense is of a little amount.
2 Finance Team
2.1 consultant
A great financial performance means the ability of making profit, operating and resisting the risk. A smooth running finance team can degrease cost and bring a handsome reward. So it’s important to seek for finance consult ant to help us.
2.2ACCA training
All accountants at Data-net are required to undergo ACCA training. So this expense is inevitable and the training improve the ability of accountants, which makes the team more specialized.
2.3Tax advisory fees
We don’t think we need to pay too much on tax advisory, as our accountants are acquainted with relative laws and regulations.
3 Marketing Department
3.1Television advertising
We know, adver tise is a main way to increase the public awareness, so we‘ll put more
money on the advertising. The television is widely-used as a means of entertainment, therefore it can reach vast audiences.
3.2Radio advertising
Although radio advertising can‘t last for a long time and messages are limited because radio relies only on the sense of hearing, but we consider that it has efficiency in touching our target market in the region area. So, we put radio advertising behind television advertising as a medium priority.
3.3Public relations firm fees
To help avoid a potential public relations faux pas, the function of public relations is what advertise not owned, so it can be a supplement of advertise and helpto increase the public awareness
4 Business Development Department
4.1Sales target rewards
Though we think staff salary is the most important expenses in the function. We should transfer some expenses from the salary to the sales target. It will stimulate individual or group to work hard to attach the aim. And if the sales target are completed rapidly, it will benefit the company to make a further sales plan. Also owned a large number of customers in a short time can increase the company’s reputation.
4.2Customer analytics software
Also, customer analysis software is a necessary cost as it will increase sales performance and help the investor to make a reasonable decision in a sales department. The data is clearly presented to the manager, and it can help the manager to analyze the market situation effectively.
4.3Team building exercises
Next, I must say a harmonious working environment and good team work are good for the cooperation between different departments and such training is meaningful. But in the early days of the company .we don’t need too many those trainings and should put more money on other expense to expand our company business.
5 Operations department
5.1 Product development
We all know that core competence is the cornerstone of the enterprises to achieve their sustainable development, is the source of enterprises to obtain and maintain competitive advantage.As a technological enterprise, Data-net needs to shape its core competence through technological innovation, to survive in an increasingly competitive market.
So, we choose Product Development as a high priority expense, with--to develop oursuperior product and service for low income families.
5.2 Patent attorney fees
Technology is actually a big advantage, however, once the technology is copied by competitors, this could mean all the money we spend on the product development is wasted, and we make wedding dresses for other companies. So, the patent attorney is necessary and they must provide the best patent product service for us.
5.3Health and safety awareness training
Finally, we regard health and safety awareness training as the low priority, it is just not that important like the other expense according to the company's situation now. But we admit it is doubtlessly needful.
Conclusion
A ppendix3。