381ACC - Performance Management

Coursework Question: Proponents of Beyond Budgeting criticise traditional budgeting as a methodology that inhibits a firm from continuously adapting to the increasing hostile and volatile business environment. Jeremy Hope and Robin Fraser, in their article “Who needs Budgets?” published in the Harvard Business Review (Feb 2003) declared that “Budgeting, as most corporations practice it, should be abolished. That may sound radical, but doing so would further companies' long-running efforts to transform themselves into devolved networks that can nimbly adjust to market conditions”. Required: Discuss whether you agree with the statement that “Traditional budgeting inhibits a firm from continuously adapting to the increasing hostile and volatile business environment” by referring to the article found in the link You must provide an informed (i.e. researched) opinion by reading and incorporating both authors’ above arguments and that of others. You CANNOT USE Wikipedia and essays online. • Abstract (concise summary of the main aim(s), arguments, and conclusion(s) reached in the essay) • Introduction (providing a clear and concise introduction of the topic and how the essay will address the topic in the remainder of the content) • Main evaluation (relevant and specific discussion of the issues identified, well developed arguments, use of examples and research throughout to support arguments) • Conclusion (strong, clear, and concise summary of findings).