Management & Budgetary Control and the Beyond Budgeting debate Essay - 1

Management & Budgetary Control and the Beyond Budgeting debate - Essay Example Various advantages can come up from incorporating beyond budgeting technique in an organization. One of these is the fact that people get to improve in their creativity in the business market. Beyond budgeting requires the involved individuals or rather company members to provide plans that would lead to the production of a new commodity (Blyth 68). New commodities require a lot of attention because many people are keen on the details of the commodity in order to assess whether it can act as a substitute product. This thus offers companies opportunities to become market leaders in some fields (Martin and Hau 47). The fact that competition is a contemporary issue in the marketing sector is another factor to understand. Businesses have developed over time where they are required to attain certain market characteristics in order to retain or rather earn a certain position in an industry. These companies thus compete to attain these characteristics faster than their rivals in order to attract more companies. This strategy works effectively and is a result of beyond buying (Henry 64) There are various disadvantages however that come along with the beyond budgeting technique. The major disadvantage is that the companies risk losing their customers. The reason for this is indirect though (Fleisher 78). When companies engage in beyond budgeting, they take up activities that seek to prove that they are superior to the rival company. This normally has the effect of the companies not paying attention to the actual requirements of the customers but rather work while reviewing the performance of the other companies to identify its market position. The normal result of this is the depreciation of the commodities produced by the companies (Gregory 32). There is also the issue of unhealthy competition. Unhealthy competition happens when two industries within a