Malven Star Bike Company

PART A

Name of Organization

Malven Star is a bicycle company set in during 1903 by Tom Finnigan, inner east suburb of Melbourne, Australia (Malvern Star, 2020). It is Australia’s most established and experienced bike manufacturing brand that fulfills the riding needs of kids, hikers and bikers alike. The company deals with manufacturing of a range of bicycles including recreational bikes, mountain bikes, kid’s bikes, heritage bikes and electric bikes  (Malvern Star, 2020). 

Team Supervision

The supervision of financial department is currently being handled by me. The budgeting team of Malven Star is responsible for designing the short-term and long-term budget models for the entire company. Furthermore, different team members are responsible for gathering and analyzing financial information regarding revenues, expenditure and cash management in order to ensure that all operations are within the budget and all resources are allocated efficiently (Aspire, 2020). The manager of budgeting team is responsible for presenting annual budgets to senior managers. 

Team Budget Responsibility 

Currently, short term budgets/financial plans are being created, implemented and monitored. Under this, I am responsible for implementing and monitoring the income and expenditure budget. This budget shows the anticipated costs and funding of the costs for a specified period of time. This budget allows the company to get the idea of required revenue in future so that it can be used for growing the business of covering up the future expenditure (Arihant Experts, 2018). This budget must be evaluated regularly to ensure alignment with goals and identification of potential spending issues.

PART B

Purpose of Team Budget

The team budgets are the forecast of expenditures and revenues on monthly basis uptil a year (Anandarajah, Aseervatham, & Reid, 2015). This helps the business managers in making resource allocation decision and then identifies the plan for potential cash crunches. 

Explanation

The revenue and expenditure budget was chosen. The initial costing including in revenue and expenditure seems to be accurate as the documents including bills and receipts can be verified. The detailed analysis of expenditure budget is also possible due to availability of the document. However, the time allocated to the tasks seems to be unrealistic.  

Areas of Improvement

The initial revenue and costing is needed to be revised because it has been proven to be inadequate or inaccurate. In this light, the sales budget can be improved because of the boom in cycling market in Australia. The demand for mountain bikes has become popular much recently.