Questions: Budgeting and Business Planning

Question 1c

In order to create the criteria for the committee we have to look at what they want from the project. Most businesses and organisations are in business to make a profit, however the committee has different aims and objectives compared to a normal business or organisation. They need to weight up the options of each proposal and decide which best relates to their aims and objectives. When the committee is considering which proposal to go with they should consider the following categories • Short-term Financial Benefits
• Long-term Financial Benefits
• Environment
• Relation to aims
Short-term Financial Benefits
The committee needs to consider the short term benefits of each proposal. They don't want to take on a proposal that has high start-up costs and doesn't make a return on the capital within the first year. The committee does not want to be left in a high amount of debt if the proposal fails. If the committee is left with a debt they may not be able to fund other projects to further their three aims. Long-term Financial Benefits
Long-term the proposals will give different outcomes. The committee needs to decide on how long they want to keep moult hall? If they want it as a long term asset which can help with their aims? Or do they want a longer term money making scheme to boost revenue which can be used in areas they already control. Environment
Moult Hall comes with a huge area of woodland, they needs to consider the effects on the local plant life and wildlife that any proposal could have. They need to think, does it destroy plant life? Does it impact on wildlife habitats? Is their going to be any long lasting environmental damage? Relation to Aims
The committee is based on three main aims. They need to consider these aims in making their decision, they can't be making use of one proposal if it goes strictly against some of their basic aims. They have to consider their own image and brand, does a proposal give them a bad name/image