Imagine if a relative or close friend asked you to plan the entirety of their wedding but then refused to share how much money they wanted to spend on it and what their priorities were. For the reception, would you book a high-end hotel or plan a backyard event? Would you book a photography studio for five figures or find a photography student who is working on their portfolio? The inevitable disaster this situation would create can similarly be experienced by managers who lack guidance and direction. Negative outcomes are more likely to be avoided when managers rely on predictive tools, such as strategic planning, budgeting, and forecasting. For example, a reasonable budget can enable an organization to allocate resources, provide a plan to achieve goals and objectives, and help measure and communicate organizational performance, thereby enabling managers to make effective decisions. In this Discussion, you will consider how strategic planning, budgeting, and forecasting impact an organization and its decision making.
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