Company Budget

THEME
Company Budget

SUPPORTERS:

Ramon L. Sanchez A00125805

Luis E. Taveras A00125444
Edwin Fernandez 2018-2720

COURSE
Business Budget I

FACILITATOR (A)
Lic. Antonio Núñez Alcon

Santo Domingo Dom. Rep. January 27, 2021

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INDEX

Introduction………………………….……………………………… Page 3
Justification……….…………………..………………….. Page 4
Topic I Knowing the Company………..…………………….…... Page 5
Vision, Mission, Values…….…….……………………… Page 6
Services……………….………….……………………… Page 7
Time of Operations………..…….……………………………. Page 8
Organizational Structure…..……….……….…………………… Page 9
Topic II General Characteristics of the Budget………...….. Page 10
Sales Budget…………………………….………………. Page 11
Topic III Marketing Plan……………………..………………… Page 12
Topic IV Plan of Operations…………………………..….…… Page 13
Various Manufacturing Processes……………………………..………. Page 14
People Required for your Operational Processes…..…… Page 15
Indirect Manufacturing Costs……………………….……… Page 16
Conclusion…………………………………….………………….. Page 17
Recommendations………………………………………….……… Page 18
Bibliography……………………………………………….………. Page 20
Annexes………………………………………….………………… Page 21

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INTRODUCTION

As you know the importance of budgets in a company, how much a correct

application can provide within it and its multiple benefits, so we present below a
project which aims to publicize everything related to the budget, the types of
budget and as the selected company applies it.

Our project aims to present the reader with a perspective and a general
approach of what the budget is and how is the role within the management and
its strategy plan and how important it is as a planning tool and highlight the
controls that can be established. through it, and as the basis for commercial,
manufacturing and financial forecasts.

With this research we want to make known how the budgets are applied, who
are in charge of their elaboration and objectives of great importance that the
student will be able to know and apply at a certain moment within the
professional field. It is important that we will be highlighting how transcendental
is the application of budgeting techniques in public and private companies, on
the other hand, we will be presenting some examples which allow a better
understanding, we will see how the budget is evaluated in the planning
processes and in a way brief but very punctual what would be the advantages
and its limitations of what is the budget work in a company.

At the same time we will address issues of great importance such as the
mechanics of the budget, since we will be talking about a company which has
more than thirty (30) years of experience in the manufacture of mass
consumption products, in this case Industria la Nutritious.

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JUSTIFICATION

Our research has as importance the good management and application of

budgeting techniques, knowing how the company La Nutriciosa is implementing
it and the benefits obtained through its application and management of budgets
within the aforementioned company, at the same time give knowing the student
how much we can learn from the good management of budgets, that is why we
have motivated ourselves to carry it out because we understand the importance
of this particular topic and how much it can contribute as a student to the reader
of this research.

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THEME I

Knowing the Company

La Nutriciosa, started in 2015, this company under a determination to meet the

consumer's need and to produce a wide range of products with quality
standards and high nutritional value, which gives each of the consumers to
taste and experience a unique sensation.

This company operates within the category of food for mass consumption,
although this company started in 2015, but was introduced in a formal way to
the consumer market in 2017, it should be noted that each of the products
offered by La Nutriciosa It is supported by the quality of its livestock raw
material from local and international suppliers who are highly committed to the
institution's work philosophy.

La Nutriciosa, has been characterized in the short time of its operations for
being an innovative and dynamic company which has allowed it to be able to
respond to the demand of Dominican consumers, this vision has allowed it to
evolve accordingly, it offers a wide catalog of various products, which allowed it
to offer the guarantee of: quality and high nutritional values. The company
currently has a wide distribution line, this allows it to be present in a large part of
the national territory.

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VISION
Ser la empresa de alimentos de mayor valoración para nuestros
clientes, empleados, proveedores y accionistas en relación a la
calidad, diferenciación, eficiencia operativa y administrativa en la
República Dominicana y el Caribe.

MISSION

Ofrecer productos inocuos y de alto valor nutritivo, aportando

una experiencia organoléptica diferenciadora a nuestros
consumidores.

VALUES

Excellence

Innovation

Responsibility

Teamwork

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SERVICE

NUTRICIOSA, is a company which is dedicated to service, which has a wide

range of products, these products have given it the opportunity to compete in
the market with traditional brands in the Dominican market and the taste of each
of its consumers. , within its products we can mention sausages and meats,
creating a quality commitment to be able to retain its consumers and strengthen
a link with each of its suppliers, taking into account the satisfaction of each one
of them.

This company has focused on strengthening a distribution chain, a factor that

they have considered of great importance, knowing that it is an opportunity to
be able to position the desired markets, for which it is opening a market
throughout the national territory, processing food according to market demand,
a strategy that allows him to produce and have a good level of sales of all his
products.

Institution which is very identified with the taste of Dominicans, committed to the
values, quality of life of the country, making a series of contributions in different
areas such as the cultural development of its locality, allocating funds for the
professional technical education of young people. of the community, having a
great presence in development plans and improvements in the most vulnerable
sectors close to this company.

Assuming the commitment to carry out ethical, social work with responsibility.
Complying with the rules and human dignity, promoting health, safety,
transparency and honesty. This has allowed us to have a close link with interest
groups, establishing good corporate citizenship.

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TIME OF OPERATIONS

NUTRICIOSA, is a young company in the market, but with a great presence due
to the quality of its products, which makes it worthy of being a competitive
company compared to other brands, this company only started its operations in
2015, previously we mentioned that two Years later, it was placed on the market
with its products, which has been established for six (6) years, which have
served to show how focused it is on its vision within the institutional philosophy.

Throughout these years, this company has been dedicated to the quality and
innovation of all its production systems and the continuous improvement of all
its production processes, investing in quality control machinery and qualified
personnel, to establish standards of excellence and adhere to the commitments
acquired before its collaborators, partners and suppliers.

This company has begun to take giant steps with which it has stood out and has
been able to be recognized in the market for sausages, meats and other
products, taking into account the great challenges that lie ahead in view of its
large competitors and companies that are leader in the market for the products
they sell, these challenges are an opportunity for Nutriciosa, to frame a
commitment to its operations and until now, since its inception, it has worked to
improve each of its products, with the faithful purpose of being a company
competitive and adapted to the demands of the market.

ORGANIZATIONAL STRUCTURE

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General
Manager

Project
manager

Marketing and
Operations
Finance

Distribution Warehouse Accounting HR

Department

This company, regardless of its organizational structure and the short time it
has been established, has been able to structure itself with the aim of being
able to cover the key and strategic areas and the most important within the
company, at present this company is in a process of restructuring its different
departments, since with the emergence of new markets they have been
implementing new administrative and production and operations strategies.

That is why La Nutriciosa will be presenting a series of changes in the coming

months, including a packaging logo on its products, a graphic line on its
invoices and a fleet of vehicles and trucks, a strategy that seeks to impact the
market with a renewed and fresh proposal to its consumers and collaborators .

Chapter II

General Characteristics of the Budget

Companies calculate their income well in order to have good economic

foundations, taking into account that all areas are not the same in financial

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terms, which implies a great difference in their characteristics. That is why, in

order to establish a budget, it is necessary to have a vision based on a well-
structured and strategic plan in which the different departments of the company
are integrated, Nutriciosa in its budget plan takes into account each department.

Based on what was said, this company has traced a tactical path, with
reference to the resources it possesses and the tools, these two elements are
the fundamental axis that allows them to fulfill their strategic objectives.
Regardless of the expectations regarding any budget, among its classification
La Nutriciosa makes use of one of the budgets, the sales budget or the income
budget.

This type of company adjusts to the market demand, starting from this point
they proceed to the preparation of the production budget, which reflects the
established goals and can increase the company's assets, although it is true
that there are many companies that make use of of this type of procedure, by
virtue of the fact that it allows them to be updated, a key element for good
business and finances, and it is a starting point for the creation of budgets on
various occasions.

With the goals outlined in an already established period, Nutriciosa carries out
the studies that allow it to be able to evaluate the existing demand in the
market, and this aspect of great importance allows it to have a correct
guarantee of the factors that can affect economic aspects and the industry, On
the other hand, data of great importance such as sales from past periods, this
facilitates budget execution.

To have more specific data on the sales budget established in Nutriciosa, we

present a table where we detail the budget for the year 2020

Nutrient Company
Sales Budget
For the year 2020

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25% 28% 23% 30%

Trimestre 1 Trimestre 2 Trimestre 3 Trimestre 4
Ventas en Base a Unidades 55,000 15,400.00 12,650.00 16,500.00
Precio Unidades 175.00 175.00 180.00 180.00
Ventas Brutas 9,625,000 ### ### ###
Descuento/devolucion 110,000.0 120,000.00 125,000.00 130,000.00
Total ventas netas 9,515,000.0 ### ### ###

It is important to note that this technique implemented by the Nutriciosa

company allows you to have a fairly clear projection of how your net sales,
discounts, gross sales will be, all of this based on sales in units, at the same
time it is a way of preparing your budget annual, a very important point that this
company has taken into account the advantages of budgeting through sales
and production.

Chapter III
Marketing plan

What do Nutriosa take into account for the marketing plan?

Since their products are focused on the consumption of the whole family, they
do an extraordinary job in terms of selecting the programs where their brand will
be placed, the hours in which they will be placed. Also their participation in the

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various campaigns and activities which go hand in hand with activities of a

social nature and the development of youth and sports in general.

Type of Investment in terms of Marketing issues

Radio, television and social networks.

Advertising campaigns with media personalities
Sponsorship activities, sports and social activities
Sponsorship in cooking programs broadcast on TV and Social Networks
Promoters in Supermarkets
Influencer mentions on social media pages

Environment Topics

Poor logistics of distribution of funds. Internal Factors

Insufficient production capacity

External factors

Adulteration of products or bad advertising of their quality by their

consumers
High prices in the purchase of raw material by suppliers

Chapter IV
Operations Plan

There is a close relationship with the administration and decision making in

everything related to a transformation within a company, that is why the need
arises for a good structure which establishes categories and operational
decisions can be defined. In this sense, there can be several, but it is
indisputable that the most advisable thing is a functional structure that allows it

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to unite the decisions. This structure makes a group by the different areas under
which their responsibilities are, such as those related to facilities or inventories.

La Nutriciosa is setting a standard as a company in terms of maintaining its

quality standard, updating its production methods with the aim of being at the
forefront and the demands of the new times, since everything is with a purpose
and determination of power. They achieve high quality products for the tasting
of their consumers. Currently, it is committed to product quality and customer
service, both of which are shown by the variety of its products.

Although it is clear and evident that they are currently in the process of
expanding their physical product processing plant, it is important to mention the
processes to which they have undergone to obtain ISO 900 certification, based
on quality management, for On the other hand, we must mention the prisoners
for the ISO 14001 certification, with which they seek to be recognized for their
commitment to the Environmental Management System, and their respect for
the environment.

This company has worked hard to be able to obtain certain cost leadership and
compete against its competitors, working with a department dedicated to
establishing the cost of its products made in the company, this allows it to have
and know the real costs and allows managers to be more related to the
investments made in the process of transforming products. This strategy allows
you to streamline costs without impacting products.

La Nutriciosa has implemented the system of costs by processes, through the

SAP system, this module has created a function of great importance, to be able
to ensure the supply of products and optimize the development and

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development of the same and the system, which allows speeding up the
introduction to the market. This module covers areas such as information
lifecycle management, program and project management, full-process
collaboration, quality management, full-cycle asset management, and
environment, health and safety, which is used to cost products more effectively
and with a much smaller margin of error. This company implements the PEPS
in the inventory valuation system, due to the type of product which is perishable
and as its acronym indicates First in First Out

Various Manufacturing Processes

Mixed : as we already know, through this process all ingredients are integrated
into a grinder where they are mixed.

Packed: the casing passes through a hopper, where the product is packed, by
means of an automatic packing machine where the packing material is placed
for such purposes.

Cooking: the product is already packed by means of a belt that transfers the
product to an oven for cooking.

Labeling and Pasteurization : Once the product has passed the cooking oven,
it is sent to the labeling process and to the pasteurization process where any
type of germs and bacteria are eliminated.

People Required for your Operational Processes

La Nutriciosa, taking into account as a basis for its determination of the

personnel required within the sales forecast, the work carried out by the sales
department is the preparation of reports which is supplied to the operations
department, in which the purpose of sale which together with the HR
department will determine what quantity is required for production.

This company for the performance of the operational processes is contracted

the female telephone, working together with leadership people and different
sources of recruitment internally and externally, within the area of selection and

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recruitment is the selection approach of female profiles which They will be

occupying various areas, among which we can mention which they are focused
on, areas of technical development, gender diversity, currently there are
approximately a total of twelve motivators, thus promoting the hiring of women
within the institution.

This company has a high presence of female personnel in positions of greater

responsibility, we can highlight the managerial levels of up to 32%, this is a
symbol of the recognition of the effort of women in the professional field. There
are experts who predict that women will have a strong role in everything that
has to do with the proper functioning and economic development of companies
in future decades . Statements of great weight such as that of the instigator
Jack Zenger , who is noted for his contributions in the field of development,
leadership, and the behavior of the organization within companies, says:

Women have a high rate of effective leadership skills!

Annual Manufacturing Indirect Cost

Before disclosing the CIF, of this company it is good to understand more about
what they are and how they are calculated, indirect manufacturing costs are
those that cannot be directly attributed to a specific item within the
manufacturing process.

La Nutriciosa, there is a list of the different indirect manufacturing costs, Fixed

Costs, Variable Costs, and Mixed Costs

La Nutriciosa Cost Type Matrix and Annual Operating Expenses

Warehouse rental payment CIF

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fixed property tax Telephone, MIF, MOI Property tax

Logistics, Light on building

Plant and equipment
depreciation heating, Energy and

Fuel, physical plant manufacturin

TV spot
maintenance g

Fixed costs General

expenses
Indirect costs
MOD, MP, Supervision,
Maintenance, services, investment costs Research
Direct Supplies, Containers, royalties Depreciation P
and Patents relationships
Variables Taxes .
Direct variable costs Insurance Audit

Sales and distribution costs Financing Administratio

n Costs _

CIF

Monitoring, maintenance and repair

inspection, Compensation Insurance

Mixed
Services, Employee Payroll, Office Vehicle Rental

CONCLUSION

The result of our research or rather a complete project where we have captured
everything related to a young company in its manufacturing operations but with
a strong and determined desire for development in our country, we can finish by
saying that La Nutriciosa, according to what Visto is a company with a great
future due to the quality of its service and its products, focused on strengthening
the areas that will allow it to continue to scale within local markets and why not
in the future in international markets.

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Currently the company has a good portfolio of clients which is expanding,

implementing strategies to reach markets and public from other regions, this
Nutriciosa strategy shows each of its consumers, collaborators, partners and
Suppliers the commitment it has with quality and excellence.

As we went into this investigation, which shows us and teaches us the great
importance of a good application of the budget, on the other hand, everything
related to aspects as important as the production budget and the sales budget
among others, Nutriciosa has been able to make correct use of this tool, which
has borne great fruit in the time they have been operating.

In accordance with the analyzes made in conjunction with our research, we

already have a clearer vision of what this company is, everything learned during
the course of this subject, and how resources are distributed through the budget
strategy they develop, what shows remarkable growth in the entire production
line and sales department.

RECOMMENDATIONS

As a goal achieved, based on this project and the research on the Nutriciosa
company, where we can see with clear evidence that it is a company that works
in an organized manner and has joined the rhythm of the new times in
technological terms, in its processes. and work machinery, at the same time

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making use of the constant training of its collaborators, we recommend that it

maintain this rhythm, the strategies that it has been implementing, at the same
time maintain the quality levels of each of its products with the objective of
reaching the quality standards required to the new times.

BIBLIOGRAPHIC REFERENCES

Burbarno Ruiz J. Budget, 4th Edition; Publisher Sponsor 2011; Retrieved from:
https://learn-us-east-1-prod-fleet02-xythos.content.blackboardcdn.com/
5cb4ab33842e1/1360636?X-Blackboard-Expiration=1611014400000&X-
Blackboard-Signature , Accessed January 22, 2021 at 8:45 p.m.

La Nutriciosa Retrieved from: http://nutriciosa.com/talento-humano/ , Visited on

January 23, 2021 at 7:33 pm

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Sánchez L. , Undertake Pyme.net; What is the budget? Retrieved from:

https://www.emprendepyme.net/que-es-un-presupuesto.html , visited on
January 22, 2021 at 4:50 pm

ANNEXES

General Data :

Processed meat ham This ham is

made from turkey meat, one of its
premium products, seasoned, cooked and smoked.
Guaranteeing with its elaboration a freshness that the
consumer can appreciate from its tasting , this
product is ready to consume.

The process of this product is with top quality meat. They have two
varieties of pork and beef, seasoned, cooked and smoked, with a high protein
content.

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Super special premium quality salamis, variety of chicken,

pork and beef with a selection of high quality
selected raw material .

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