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Budgeting decisions can be taken from a bottom-up (starting at the departmental level) or top-down approach (taken by top management). Budgeting activities are linked with organizational objectives and strategic plans because it helps in setting priorities for how resources should be used, ensures that funds are distributed based on needs, and reduces/eliminates waste of organizational resources (Chen et al, 2022).

1. Significance of Business Plan

Financial planning helps organizations to accurately assess risks, choose the best risk protection plan, allocate resources equitably, and continuously control/track performance to achieve maximum returns on investment (ROI). It is crucial for determining the capital requirements of business projects/activities. Also, a tactical business plan helps managers to establish a capital structure suitable for the activity and resource, as well as enact financial policies that enable optimal utilization of resources (Hayden et al, 2022).

1. Marketing and Advertising Plan

Studies show that product launch is a complex, multi-level process that requires in-depth analysis of the internal and external business environment. From product development to advertising and sales, business leaders need to identify their target audience, evaluate potential risks, and design a strategic cost management (SCM) model that aligns cost information with decision-making structure. The SCM technique will not only lower production costs but strengthen generic strategy (Kaufman et al, 2021).

Samsung is about to launch a virtual reality (VR) gear. Like every other product manufactured in response to consumer demands, Samsung Gear VR was first launched in the 1990s for gamers who spent several hours on their Sega VR. HTC Vive, Oculus Rift, and PlayStation are some of the biggest competitors at that time. Samsung’s drive for innovation, value creation, and positive customer experience is sustained by the brand’s huge R&D investments, strong capital base, and strategic partnerships. The launch of Samsung Gear VR is an attempt to strengthen their innovation strategy and appeal to gamers and high-tech lovers of different ages. The Consultant suggests on these: implementation process, potential outcomes, marketing channels, and communication strategy (Yang et al, 2022).

1.3.2 Communication Channels

At the idea generation and screening stage, Samsung explored the market feasibility of marketing Gears powered by artificial intelligence (AI) and found that this invention would improve engagement with customers in different market segments. Concept development based on Samsung’s differentiation strategy focused on unique characteristics that guarantee competitive advantage because this is the first VR Gear option available on Samsung mobile devices (selected models).

The Consultant therefore suggests use of beta-testing and marketing testing to first communicate with a selected audience to discover technical flaws that could negatively affect the launch.

Using an integrated marketing communication plan, Samsung should maximize customer feedback to modify and upgrade the product’s compatibility with a wider range of models.

Audio and visual marketing channels for the new product include print/digital media (newspaper, magazine, radio, TV, social media platforms), company website, and billboards (Yang et al, 2022).

1.3.3 Key elements of a financial plan section

Samsung’s financial plan was crucial in its successful delivery of low-cost innovation when compared to similar products from HTC and Oculus.

The key elements commonly recognized in financial management are:

• Profit and loss statement.
• Net income
• Operating income
• Cashflow statement
• Sales/revenue projections
• Balance sheet
• Break-even analysis and business ratios
• Budgeting and taxes
• Financing large purchases
• Risk management
• Managing liquidity, or ready access to cash
• Diversification
• Communication and record-keeping.

References

Chen, Y., Hao, S. and Li, A. (2022), “Do governmental, technological and organizational factors influence the performance of financial management systems?”, Kybernetes, Vol. 51 No. 3, pp. 1127-1150.

Hayden, M.T., Mattimoe, R. and Jack, L. (2022), “Sensemaking and financial management in the decision-making process of farmers”, Journal of Accounting & Organizational Change, Vol. 18 No. 4, pp. 529-552.

Kaufman, M., Matsumura, E.M. and Wemmerlöv, U. (2021), “Accounting Control, Operational Control, and the Value of Continuous Improvement: A Capacity Change Perspective”, Akroyd, C. and Burney, L.L. (Ed.) Advances in Management Accounting (Advances in Management Accounting, Vol. 33), Emerald Publishing Limited, Bingley, pp. 1-29.

Yang, W., Zhou, Y., Xu, W. and Tang, K. (2022), “Evaluate the sustainable reuse strategy of the corporate financial management based on the big data model”, Journal of Enterprise Information Management, Vol. 35 No. 4&5, pp. 1185-1201.