(Drury) The Budgeting Process - The strategic planning, budgeting and control process - Strategic planning process

5 important questions on (Drury) The Budgeting Process - The strategic planning, budgeting and control process - Strategic planning process

What is a strategic plan/long-term plan?

A top level plan that sets out the objectives that an organization's future activities will be directed towards.

What is the hierarchy of objectives according to Johnson, Scholes and Whittington?

1. The mission of an organization
2. Corporate objective
3. Unit objectives

What is the mission of an organization? (4)

A general statement of an organization's
1. purpose
2. its reason for existence
3. the nature of the business it is in
4. the customers it seeks to serve/
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What are unit objectives?

Specific, measurable statements, often expressed in financial terms, of what individual units within an organization wish to achieve.

How are corporate objectives an unit objectives related?

Corporate objectives are normally set for the organization as a whole and are then translated into unit objectives, which become the targets for the individual units.

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