Budgeting – A systematic approach to profit planning and control is a work centered on the use of budgeting as a tool for planning and control for profit maximization in a mobile telecommunication network Nigeria limited Enugu as a case study. The objective of this study is to show the importance of budgeting as a tool for systematic profit planning and control in the mobile telecommunication network Nigeria limited which has profit maximization as its objective. The research work is also aimed at identifying the steps adopted in the formation of annual budget of MTN Nigeria.
TABLE OF CONTENTS
CHAPTER ONE
1.0 INTRODUCTION 1
CHAPTER TWO
2.0 LITERATURE REVIEW 16
CHAPTER THREE
3.0 RESEARCH DESIGN AND METHODOLOGY 33
CHAPTER FOUR
4.0 DATA PRESENTATION, ANALYSIS
AND INTERPRETATION 39
4.1 Analysis of Questionnaire Returned 39
CHAPTER FIVE
5.0 SUMMARY OF FINDINGS, CONCLUSION
AND RECOMMENDATIONS 54
Bibliography 60
Appendix 63
The growing complexity of the business environment and the ever increasing competition among firms in the modern time, make planning and inavailable tool for business success.
Budgeting is one of the tools adopted by management for effective cost planning and control.
A budgeting commonly understood as the forecast of government, organization or society, of its expenditures and ventures for a specific period of time. The period covered by a budget is usually known as a financial year. Budgeting is concerned with the utilization of financial resources to serve human needs. Budgeting is mainly a mechanisms for making choices among alternative expenditure.
An enterprise which is effectively and efficiently managed produces good and rewarding results. Management is efficient if it is able to accomplish the objectives with minimum efforts and costs.
Profit planning and control or budgeting is an integral part of management. The decision making process of management sesits with planning. Planning is the design of a desired future and of effective ways of bringing it out. Planning involves the determination of the future course of action for accomplishing the objectives of the enterprise. The basic purpose of planning is the provide guidelines for making decisions. It is a forward process to reducing uncertainty about the future.
Planning is a continuous process which would generally involves four fundamentals steps:
Objectives are the statement of boar and longterm desired state of position of the enterprise in the future. They are directional and motivational in nature. They are generally the qualitative expressions of the desired future state.
Goals represent the operational specifications of the broad objective with time and quantity dimensions. Goals are the quantified targets to for attained within a specific period.
Strategies specify the ways of achieving the goals operationally. For instance, use of retained earnings for expansion, keeping dept at a reasonable level, expending sales through price reduction and aggressive advertisement.
Finally, the formalization of objectives, goals and strategies for operational purpose is called the profit planning or budgeting. It is called the profit plan or budget because it explicitly states the goals in terms of time expectations and expected financial results for each major segment of the entity.
1.1 HISTORICAL DEVELOPMENT OF THE FIRM
It is important at this point to review briefly the history of the company Mobile Telecommunication Network Nigeria Limited (MTN). it was incorporated in Nigeria communications commission. On May, 2001 MTN emerged as the first to make calls on its GSM Network in the new dispensation. Thereafter, the company launched full commercial operations beginning with Lagos, Abuja and Port-Harcourt in the company new provides coverage to 85 cities and well over 5,000 communities and villages, spanning every geo-political zone and 31 of Nigeria’s 36 states.
It is the first to erect a country wide micro-wave radio transmission backbone, offering unnvalled value for money evidenced by a loyal customers base attracted by MTN’s convenience, mobility, roaming on 30 international networks and economic tariff.
MTN’s product and services are available at its friend scrip centres and a nationwide network of dealership, banks and convenience channels including entries, petron stations and neighbourhood stores.
1.2
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