Running head: REAL WORLD APPLICATION ASSIGNMENT 2
REAL-WORLD APPLICATION PAPER
Faith Wanjiku Hansen
Real-World Application Assignment 2
School of Business
19th July 2019
The Role of a Budget
The role of a budget is to ensure that all the plans for resources and acquisitions are provided for and the expectation of the business are met within a said period. A budget is essential because it is essential to a company in analyzing the business goals and can be useful for the next year in determining the strategic allocation of financial resources, and the effects on the capital budgeting decisions. This document will discuss, Nairobi African Market, a small grocery business in Moline, Illinois, how the allocation of finances improved the customer flow, what areas needed more financing and areas that needed the financial budget reduced. As the business is small, the budget and allocation are done by the business owners all depending on what the consumer is requesting. The challenges of heavily depending on the consumers will also be discussed and how this affects the allocation of financial resources.
Keywords: Budget, Nairobi African Market, Costs, Responsibility, Value, Allocation, Finances, and Strategy.
Allocation of Finances for Advertising and Marketing
There are various areas of financial resources that must be considered while distributing the budget for Nairobi African Market. The first area that will keep the consumers coming back is the menu. Without a variety of products, the consumers will go somewhere else to find what they need. The aim is to ensure that in the long term, a strategic path is choosing the goals and mission are clear for what the business needs to accomplish, aiming at achieving the organization's strategic goals and objectives (Blocher, Stout, Juras, & Smith, 2019). Financial allocation begins as the owners of Nairobi African Market must carefully analyze the organization's strategic plan and the resources that are necessary to complete the project, starting with the consumer target and what they need. It is vital for the company to strategize to avoid inadequate funding, which will affect the consumer flow and achieving long term goals of the business (Blocher et al., 2019).
The First strategy for allocation of finances was done before the business started in the research of the groups of African community that were within the Quad City area and what it is that they would not do without as a staple meal. This strategy is vital to the business as all African countries have a different staple and working with the assumption that all are the same is a fast way to lose consumer loyalty (Maritan, & Lee, 2017). Advertising included posters, word of mouth, signboards and social media advertising. These were necessary to continually remind the consumer of the new grocery store that would make carter for their basic needs. Advertising as a strategy is vital for the beginning of the business and its contin...