Amended Budget Paper And Excel File

Riordan Manufacturing Inc is an international company specialized in the manufacturing of plastic products. Based in USA, Riordan Manufacturing has manufacturing plants in Georgia, Michigan, Albany and Pontiac. To achieve international status, and produce high quality products, Riordan Manufacturing has opened another plant in Hang Zhou in China. One of the aims of the Riordan manufacturing is to remain competitive in order to achieve market advantages. To achieve this aim, the management of Riordan manufacturing has initiated a policy to constantly change the business environment, and employ latest technology.

To achieve global expansion, Riordan manufacturing has decided to initiate global market expansion through the introduction of virtual organization. The Riordan’s virtual organization involves the introduction of electronic commerce in order to sell the company products worldwide through the application of internet. In the present global competitive environment, e-business has become one of the potent tools by which organization achieve competitive market advantages. Thus, Riordan manufacturing has decided to employ e-business to increase efficiency in sales and marketing through the implementation of virtual organization.

For the successful implementation of virtual business organization, Riordan manufacturing needs to employ Information Technology (IT) supports in order to install both hardware and software, and efficient implementation of operation costs is very essential. The objective of this paper is to amend the overall budget of FY2004. The amendment will reveal the increase on expenditures on items such as hardware, software and outside IT support by 4%. The paper also amends the budget by decreasing the overall budget by 2%.
Finally, the paper provides the rational behind the changes in the budget of Riordan manufacturing FY2004. To achieve the business growth, Riordan intends to implement virtual organization. To achieve efficient virtual organisation for Riordan manufacturing, it is essential to adjust the consolidating operating budget of FY2004. Essentially, paper amends consolidating Operating Budget Cost IT center for Riordan manufacturing FY2004 and in the amendment, the following requirements are reflected.
First, there is increase on expenditures on items related to hardware, software, and outside IT support services by 4 percent. Moreover, there is decrease in the overall budget by 2 percents. The paper provides the rational behind the changes on the budget amount in the next section. 1. 2: Rational behind the changes on the budget. First, integration of IT has become of the major objectives of many organisations. In the present contemporary competitive environment, organizations now realise that integration of IT tools has become potent tools by which organizations gain market advantages.
With the realization of potential benefits that IT has provided for the success of organization, Riordan manufacturing has also decided to integrate IT tools in its business operation. This has vividly revealed from the company memorandum written by Hugh McCauley, and sent to Michael Riordan, Maria Trinh, and Dale Edgel on September 10, 2003. From this memorandum, the Riordan manufacturing has dedicated to employ the latest technology to support the continuing business operations.
Proper integration of latest Information Technology in the business model necessitates the integration of latest hardware and software so that Riordan manufacturing could achieve high competitive advantages for its virtual business organisation. To achieve these aims, there is need to make changes in the budget by increasing the spending on the items related to hardware, software, and items outside IT service by 4% . The increase in the spending on these items is very critical for the successful implementation of virtual organisation that Riordan manufacturing intends to implement.
The increase in the spending on the outside IT service is also very critical because there is need to implement employee training for the continuous implementation of web based business of Riordan manufacturing. Employee training is very critical for the smooth running of virtual organization. Employee will be in charge of processing of orders sent by customers online. Moreover, employee will ensure that orders received online are dispatched to clients. Thus, employee training is very critical to ensure that Riordan’s employees are capable to handle these tasks.
Thus, increase in spending to achieve this aim is one of the reasons to amend the overall budget. Apart from employee training, maintenance and contract will also be critical for the smooth running of virtual organization, the increase in spending on this item will ensure the smooth continuity of virtual organization. The contact for the virtual organization will consist of Web hosting, off site data storage, and hardware maintenance. The items revealed in the contract are very critical for the virtual organisation. Web hosting is indispensable for web based business.
Hardware maintenance is very critical in order to avoid web failure. Offsite data storage is also very critical for web based business, off site data storage is very essential for data security because there may be data loss through theft, fire disaster, and other unforeseen circumstances. Thus, the increase in spending on these items will enhance viability of Riordan virtual organization. Moreover, the changes in overall budget are critical in order to reduce the overall budget by 2%. The reduction in the overall budget by 2% is essential to reduce overall operating costs of Riordan manufacturing.
According to Kuzic, Fisher, and Scollary (2002) the advantages of virtual organisation is to achieve the reduction in operating costs. One of the advantages of decrease in the operating costs is to increase the company’s revenue, and this will lead to the increase in the yearly net profit of Riordan manufacturing. 2: Conclusion The paper provides the amendment of budget for the Riordan manufacturing consolidated operating budget cost IT center for the FY2004. In the amendment, there are changes that reveal the increase in the spending on items related to hardware, software and outside IT items by 4%.
Moreover, there is decrease of overall budget by 2%. The paper presents the rational behind the overall changes in budget. The rational provided are to meet the aims of Riordan manufacturing in order to implement the latest technology to achieve competitive market advantages. The overall decrease in budget by 2% is also essential. This is to decrease the operating costs of Riordan manufacturing in order to increase the company’s net profits. Reference Kuzic, J. Fisher,J. & Scollary, A. (2002). Electronic Commerce Benefits, Challenges And Success Factors in the Australian Banking and Fina