Importance of Budgeting
This CNBC segment features Boeing’s CEO Dennis Muilenburg and an interesting discussion about Boeing’s increased production projections. This clip provides an example of the need to budget and plan for long-term operations. Further, Boeing’s CEO talks extensively about the company’s cash flows, which highlights the importance of cash budgets for a company.
This Bloomberg video highlights the budgeting issues at Tesla. The company is struggling to budget direct materials, labor, overhead, and capital expenditures while selling enough cars so as to not run out of cash. This video highlights the necessity to integrate operating, investing, and financing budgets to run a successful business.
This Fox Business video discusses the direct materials budgeting failures that led to delay of the iPhone X. In this video, the analyst discusses how the short supply of the pixel array and OLED screen (direct materials) led to a shortage of iPhones at launch. This highlights the importance of proper budgeting to ensure no lost sales due to lack of direct materials.