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Organization Analysis Paper - Essay Example

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The ability to lead and to manage strategically is the single most critical ingredient for success. Scanning the environment, evaluating the organization's purpose, identifying critical success factors, and developing strategies are systematic ways of creating order out of chaos…
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Organization Analysis Paper
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Download file to see previous pages This item comprises the personnel expenses and other costs of administration, as well as the cost of external services that are not allocated internally to other functions" (Nivea Home Page 2008).
a. Policy making and allocation of financial resources are determined with much thought to the broader vision of the community and its needs. Nivea strategic planning is an effective link between a number of traditional planning processes and budgeting. Similar to other cosmetics companies, Nivea has a comprehensive plan focusing on a ten- to fifteen-year horizon and emphasizing the development of the company. Budget processes tend to allocate resources on a basis of one to three years (Kemp and Dunbar 2003). Capital improvement plans tend to focus on five-year time frames. A strategic plan, like any planning process, describes future action but is not time-dependent. Some strategic issues are critical today and must be dealt with immediately (Rachlin, 1998).
Strategic planning and budgeting reflect mission statement of the company and its strategic goals. The consumer business strategy is determined as "passion for success" (Nivea Home Page 2008). In order to fulfill its promises, Nivea relies on superior brand, superior supply chain, has clear Geographical Focus and superior talent in Lean Organization. Nivea's mission formulation determines the competitive arena in which an organization operates, how resources are to be allocated, and the appropriate size of the organization. Mission also focuses the direction of the organization and helps determine its driving forces (Rachlin, 1998). The mission statement defines the overall organizational purpose and driving force(s). It should be developed by top management and, if formulated correctly, it can have surprising consequences for later strategies. "We want to continuously increase our world market share. We will achieve this by consistent growth from within and by targeted acquisitions in line with our strategy" (Nivea Home Page 2009).
The role of the senior financial officer is to ensure effective allocation of resources and financial spending. For instance, in 2004 budget department changed its mission from "controlling financial expectations" to "achieving excellence in financial and budgetary management." Respect for the organization increased dramatically and employee morale skyrocketed. Missions like these provide a statement to insiders and outsiders about what the organization stands for--its image, values, and character. For Nivea, strategy is the framework which guides those choices that determine the nature and direction of an organization. Thus, without careful budgeting planning the company would not be able to expend and invest in other activities (Garrison et al 2004). Tactical goals are the heart of budgeting. It is the process that answers the "what" questions that an organization must answer in order to carry out its mission (Kemp and Dunbar 2003). Strategy development seems to be the most difficult part of the budgeting planning process to accomplish in the cosmetic sector. Much budgeting strategy development is aimed at combating efforts or anticipated movements of competitors. The role and task of the financial officer is to control and manage financial spending and investments in accordance with goals and strategies ...Download file to see next pagesRead More
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