Kraft’s Foods Inc. financial planning: 2
What is financial planning and budget? 2
Initial step of budget or financial planning: 3
Financial Panning of Kraft’s Food Inc: 4
General business activity of Kraft’s food: 4
Budgeting Plan of Kraft’s Food: 5
Budgeting Plan of Kraft’s Food: 6
Cash flow and previous forecast: 6
Previous forecast and future budgeting: 7
Variance Analysis: 8
Net Revenues of the past years: 9
Why Zero based budgeting system: 11
Reducing the Complications in sourcing: 12
Risk management strategy: 13
Employee benefits: 13
Insurance policy: 14
Success of the plan In Kraft’s Food Corporation the planning analyst and the other business departments work together in close communication. This aids in the development of a system that allows business activities to align with the corporate goals and targets. The company is also building its performance around successful people by assuring that the plan is tied with the system that involves the use of practically tested strategies. Shared decisions of all the departments including finance and production departments help adding value to the business by improving its competitive place in the market. 14
The role of Accountant at Kraft’s Foods Budget planning: 14
Effect on employees: 15
Benefits generated from the above budgeting plan: 16
APPENDICES A 19
Appendices B 20
Kraft’s Foods Inc. financial planning:
Kraft’s Food Inc. is the world’s second largest food manufacturing company that provides numerous food items to its customers. The company is headquartered in the US but its subsidiaries are present in the UK and Canada as well form where it generated subsequent portion of its revenues. Kraft’s Food Inc. has about 25,000employees all over the world (Goudreau, 2012). Companies cannot find out their goals until they do not set clear targets and plans to achieve them (Toten, 2006). Financial planning or budgeting is one of the important plans for Kraft’s Foods as well.
The present case study will illustrate how the Kraft Food’s management system understand the financial planning details and maintains the business activities in a way that help meet company’s innovative strategies. In this respect the accounts department of the company undergoes investment forecast analysis to keep pace with the fast changing market.
Before going ahead it is important to have a brief introduction to financial planning:
What is financial planning and budget?
Usually a company’s budget covers the time period of one year. Organizations set their annual budgets to meet their business targets. Greenwood (2002) writes that the budget is planned in advance to create an understanding as to which items require more and which require less finances. The plan also shows expected outflows and revenue. Revenue generates from the sales so it is also cater by the financial planning that how much the items will be sold that help to provide...