ASSIGNMENT

Magic Homes

Magic Homes

Company overview

Magic Homes is a British construction company, building homes and offices in the UK. It employs over 100 full time employees and several hundred contract workers on its construction sites. The company is privately owned by a family of builders and has been operating for nearly 100 years. Magic Homes specializes in building houses (40% of sales) and office blocks (60% of sales), two different market segments but equally competitive.

Enterprise management system in magic homes

Since Magic Homes is a family owned company, enterprise management system can be easily incorporated and implemented in the company. in enterprise management system, At the each level management sets its goals and objectives, considers a planning horizon, uses the appropriate details. Harmonization of the management objectives through various levels of company is achieved by specifying the internal vertical links within the existing organizational structure (Arrow & Intriligator, 2006, pp 55-71).

Budgetary controls structure in magic homesManagement of magic homes must determine which financial indicators guided the company's performance, which indicators are taken as criteria for success of the company for the planning period. Traditionally, the goal of the company relates to its earnings and overall financial situation. Having stated in the budget system these targets, the leader has the opportunity to look at the results of enterprise activity through the eyes of owners, investors, suppliers, customers and other stakeholders at glance. The focus of attention of managers is another important goal - the liquidity of the company - cash flow management, coordination of payments and cash receipts.

The purpose of the budgeting system is to increase the efficiency of the business entity. A criterion of effectiveness is the ratio of the benefits to expenses, when exercising the functions entrusted to it. As a rule, greater efficiency in the implementation of budgeting is done through

Gathering information into a single set of balance of financial flows associated with the formation of revenues and expenses. At the same time it solves the problem of harmonization at the level of the economic entity and its individual departments, thereby reducing the costs arising from a lack of coordination.

Consolidation of the budgets for departments, in connection with which budgeting activity carries out much of the responsibility for the level of costs, including salaries of employees from the head of an economic entity to the managers of these units. Middle managers receive ability to manage revenues and expenses of the divisions within the overall budget of an economic entity.

The main objective is to develop procedures for making budgetary and investment decisions.

Motivation.Budgeting system first determines the basis for evaluating the performance of managers of budget units. Second, by involving a large number of employees in the planning and control, enhances their interest in the outcome of labor and financial and economic activities of the organization.

Communication.Budgets form the communication environment. Budgets are the ways to disseminate information on production and economic aspects of the organization. In formation of the budgets the information flows are moving in opposite directions - top down ...