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A budget as financial plan aimed to control future operations and results. The general purpose of a budget is to allocate funds in an effort to achieve very specific results, typically a profit. A budget is one of many tools in a toolbox used to aid a business’s decision making in both the long and short term.
My performance in this task is a poor reflection of my budgeting skills, but an accurate reflection of my desire to make decisions quickly. During the simulation, I made significant efforts to ensure I fully understood all of the data I was reading. However, there seemed to be several points I overlooked. For example, I misunderstood the cycle for opening additional plants or allowing current plants to have higher production levels. At the end of the third quarter, I thought it would be a good idea to increase my plants production capacity for the following quarter. Unfortunately, I failed to correctly read the performance instructions and found out after the end of the fourth quarter that I wouldn’t have increased production capacity until after the fourth quarter. This directly affected my results, because I wasn’t making enough products to meet consumer demand, and was actually turning away several consumers and potential for profit. In the first quarter, I chose my target markets, wrote my mission statement, started a marketing strategy, and built two products. I chose the Workhorse group as my target market, because of the quantity of people in the group and the less expensive features they demanded for their product. I chose to be a leader in the market and to provide the most reliable product at the cheapest price. I opened one store and kept my manufacturing capacity low, in an effort to “feel out the market” before really diving in. In the second quarter I began testing my products, chose advertising strategies, and chose a pricing

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