The objective of this exercise is to focus on forward planning through budgeting and exercising control by
comparing budgeted with actual.
The assignment refers to the text, Chapter 13 on Budgets, Operating Plans, and Forecasts. There is an
associated Excel template on On-Demand Business Outlook (DBO).
Requirements:
Assume your CFO assigns you to engage in determining sensitivity to critical business drivers which
face your organization. Use the DBO template from Chapter 13 provided and modify suitably.
Understand the difference between budget and operating plan
Based on situational analysis, develop a game plan for the coming year. The current uncertainty due to Covid-19 provides a realistic backdrop to projections.
Develop preliminary financial projections.
Identify critical assumptions
Develop process for on-demand business outlook / rolling forecasts
Identify critical business drivers (such as 80/20 rule)
Submit your key findings in a report (Excel / Word), stating assumptions you made.
