Science Technology Corporation - Essay Example

Secondly, they only based their budget purely on their vision towards sustaining market leadership by projecting higher sales increasing 30% year on year. Third, it failed to look into cost paving measure and instead research and development cost was driven directly by its high sales. And fourth, there had been lack of coordination among members of the leadership team of the company and let the process of budgeting and forecasting role entirely to its chief financial officer.

We Will Write A Custom Essay Sample On
ANY TOPIC SPECIFICALLY
FOR YOU

For Only $13.90/page


order now

The process of budgeting and forecasting embodies lots of coordination meetings among various key divisions in the company to align their goals on the company wide objectives. In SST, it is clearly mentioned in the first paragraph of the business case that the plan would greatly influence the financial policies and total development of he firm, if both the plan and the premises on which the budget was based were agreed upon and endorsed by the board or the management. With this, numbers were set so high driven by the objective to sustain market leadership.

Aside from drastic increase In sales projection, I also observed the following notable figures from its projected financial statements: (1) DOS – the company Is facing problem on collection process as It projects single-digit cash on hand as compared to three-digit sales figures, (2) High inventory level – despite the nature of the company, It Is unusual to have Increasing Inventory level projected at 58% of COGS, (3) Low fixed assets – It was projected that research and development cost Is proportional to sales.

In Pfizer, Inc. , budget process Is primarily driven by past performance and reasonable Increase In sales projection Is determined by comparing the Increase In prior company market share against the Increase In total market share. Though, Pfizer offers branded medicines, It never failed to consider the growing market on generalization where massive promotional campaign drives come left and right.

It entities In exploring different channels and penetrating government bald volleyballs by offering relatively high discounts for our products to be as competitive as those generics medicines In terms of pricing. It has so much Limitation on advertising Its products thus the company Is Investing more on effective personal promotional Annihilates without sacrificial the company-imposed guldens and polices on anta- corrupt practices act.

Science Technology Corporation By merrymaking drastic increase in sales projection, I also observed the following notable figures from TTS projected financial statements: (1) DOS – the company is facing problem on collection process as it projects single-digit cash on hand as compared to three-digit sales figures, (2) High inventory level – despite the nature of the company, it is unusual to have increasing inventory level projected at 58% of COGS, (3) Low fixed assets – it was projected that research and development cost is proportional to sales.

In Pfizer, Inc. , budget process is primarily driven by past performance and reasonable increase in sales projection is determined by comparing the increase in prior many market share against the increase in total market share. Though, Pfizer offers branded medicines, it never failed to consider the growing market on generalization where massive promotional campaign drives come left and right.

It continues in exploring different channels and penetrating government bid visibility generics medicines in terms of pricing.