Planning a budget A Davis Service Group case study
Page 6: Conclusion
Davis operates across 15 countries and has sales turnover of over £1 billion. To meet its needs, the company has developed a robust and detailed budgeting and planning process involving its managers. Budgeting provides an essential forecasting, control and feedback system on which effective management depends. This process translates competitive strategy into reality.
Evidence of the power of managed budgeting was seen as recession gripped the European economies in 2008. Davis was able to assess effects and build new and realistic assumptions into its budgets for the remainder of 2008 and 2009. These have proved resilient in practice. As an exceptionally challenging year ended, the company was on track to fulfil budget expectations.
By identifying and managing risks, Davis Service Group has been able to return profits, dividends and cash flow for shareholders in a difficult economic climate. This also allows the business to invest for growth in 2010 and beyond.