Amended Budget Paper And Excel File

Riordan Manufacturing Inc is an international familiarity specialized in the manufacturing of pliant products. Based in USA, Riordan Manufacturing has manufacturing plants in Georgia, Michigan, Albany and Pontiac. To bring home the bacon international status, and produce high quality products, Riordan Manufacturing has undetermined an other plant in Hang Zhou in China. One of the aims of the Riordan manufacturing is to remain competitive in ordain to achieve market advantages. To achieve this aim, the management of Riordan manufacturing has initiated a policy to constantly change the transaction environment, and employ latest technology.To achieve global expansion, Riordan manufacturing has decided to initiate global market expansion by the introduction of practical(prenominal) organization. The Riordans realistic organization involves the introduction of electronic commerce in array to sell the company products worldwide through the application of internet. In the present global competitive environment, e-business has twist one of the firm tools by which organization achieve competitive market advantages. Thus, Riordan manufacturing has decided to employ e-business to step-up efficiency in sales and marketing through the accomplishation of practical(prenominal) organization.For the successful implementation of virtual business organization, Riordan manufacturing look ats to employ cultivation Technology (IT) back ups in order to install both ironw ar and software, and efficient implementation of operation constitutes is very internal. The objective of this stem is to amend the boilers suit cipher of FY2004. The amendment will reveal the adjoin on expenditures on items such as ironware, software and outside IT support by 4%. The paper besides amends the work out by decreasing the general cipher by 2%.Finally, the paper provides the rational behind the changes in the figure of Riordan manufacturing FY2004. To achieve the business g rowth, Riordan intends to implement virtual organization. To achieve efficient virtual organisation for Riordan manufacturing, it is essential to adjust the consolidating operate budget of FY2004. Essentially, paper amends consolidating Operating Budget Cost IT center for Riordan manufacturing FY2004 and in the amendment, the following requirements are reflected.First, there is attach on expenditures on items associate to hardware, software, and outside IT support services by 4 percent. Moreover, there is settle in the overall budget by 2 percents. The paper provides the rational behind the changes on the budget amount in the next section. 1. 2 Rational behind the changes on the budget. First, integration of IT has become of the major objectives of many organisations. In the present contemporary competitive environment, organizations now realise that integration of IT tools has become potent tools by which organizations gain market advantages.With the realization of potential b enefits that IT has provided for the success of organization, Riordan manufacturing has also decided to integrate IT tools in its business operation. This has vividly revealed from the company memorandum written by Hugh McCauley, and sent to Michael Riordan, Maria Trinh, and Dale Edgel on kinsfolk 10, 2003. From this memorandum, the Riordan manufacturing has dedicated to employ the latest technology to support the continuing business operations.Proper integration of latest Information Technology in the business model necessitates the integration of latest hardware and software so that Riordan manufacturing could achieve high competitive advantages for its virtual business organisation. To achieve these aims, there is need to make changes in the budget by increasing the spending on the items related to hardware, software, and items outside IT service by 4% . The add in the spending on these items is very censorious for the successful implementation of virtual organisation that Rio rdan manufacturing intends to implement.The increase in the spending on the outside IT service is also very critical because there is need to implement employee training for the continuous implementation of web ground business of Riordan manufacturing. Employee training is very critical for the smooth running of virtual organization. Employee will be in charge of processing of orders sent by customers online. Moreover, employee will ensure that orders received online are dispatched to clients. Thus, employee training is very critical to ensure that Riordans employees are capable to handle these tasks.Thus, increase in spending to achieve this aim is one of the reasons to amend the overall budget. Apart from employee training, maintenance and contract will also be critical for the smooth running of virtual organization, the increase in spending on this item will ensure the smooth continuity of virtual organization. The contact for the virtual organization will consist of Web hosting , off site data storage, and hardware maintenance. The items revealed in the contract are very critical for the virtual organisation. Web hosting is indispensable for web based business.Hardware maintenance is very critical in order to avoid web failure. Offsite data storage is also very critical for web based business, off site data storage is very essential for data security because there may be data loss through theft, fire disaster, and other unforeseen circumstances. Thus, the increase in spending on these items will enhance viability of Riordan virtual organization. Moreover, the changes in overall budget are critical in order to reduce the overall budget by 2%. The reduction in the overall budget by 2% is essential to reduce overall operating costs of Riordan manufacturing.According to Kuzic, Fisher, and Scollary (2002) the advantages of virtual organisation is to achieve the reduction in operating costs. One of the advantages of decrease in the operating costs is to increase the companys revenue, and this will lead to the increase in the per year net profit of Riordan manufacturing. 2 Conclusion The paper provides the amendment of budget for the Riordan manufacturing consolidated operating budget cost IT center for the FY2004. In the amendment, there are changes that reveal the increase in the spending on items related to hardware, software and outside IT items by 4%.Moreover, there is decrease of overall budget by 2%. The paper presents the rational behind the overall changes in budget. The rational provided are to meet the aims of Riordan manufacturing in order to implement the latest technology to achieve competitive market advantages. The overall decrease in budget by 2% is also essential. This is to decrease the operating costs of Riordan manufacturing in order to increase the companys net profits. Reference Kuzic, J. Fisher,J. & Scollary, A. (2002). Electronic Commerce Benefits, Challenges And Success Factors in the Australian Banking and Fina