Amended Budget Paper And Excel File

Riordan Manufacturing Inc is an international ships familiarity specialized in the manufacturing of bendable products. Based in USA, Riordan Manufacturing has manufacturing plants in Georgia, Michigan, Albany and Pontiac. To achieve international status, and divulge high up quality products, Riordan Manufacturing has opened another plant in hang up Zhou in China. One of the aims of the Riordan manufacturing is to remain competitive in align to achieve marketplace advantages. To achieve this aim, the management of Riordan manufacturing has initiated a policy to endlessly change the blood line environment, and employ latest technology.To achieve global expansion, Riordan manufacturing has trenchant to initiate global market expansion by means of the introduction of practical(prenominal) organization. The Riordans virtual(prenominal) organization involves the introduction of electronic commerce in order to sell the company products worldwide through the application of inter net. In the present global competitive environment, e-business has receive unmatched of the potent tools by which organization achieve competitive market advantages. Thus, Riordan manufacturing has decided to employ e-business to affix efficiency in sales and marketing through the implementation of virtual organization.For the achievementful implementation of virtual business organization, Riordan manufacturing needs to employ study Technology (IT) supports in order to install both hardw ar and softw be, and expeditious implementation of operation costs is very essential. The objective of this composing is to emend the overall budget of FY2004. The amendment will reveal the increase on expenditures on items such as hardw ar, software and outdoors IT support by 4%. The paper withal amends the budget by decreasing the overall budget by 2%.Finally, the paper provides the keen can buoy the changes in the budget of Riordan manufacturing FY2004. To achieve the business growth , Riordan intends to implement virtual organization. To achieve effectual virtual fundamental law for Riordan manufacturing, it is essential to adjust the consolidating operating budget of FY2004. Essentially, paper amends consolidating Operating Budget Cost IT promenade for Riordan manufacturing FY2004 and in the amendment, the adjacent requirements are reflected.First, in that location is increase on expenditures on items related to to hardware, software, and outside IT support services by 4 percent. Moreover, there is decrease 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 acute behind the changes on the budget. First, integration of IT has become of the major objectives of many schemes. 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 benefits that IT has provided for the success of organization, Riordan manufacturing has excessively 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 family 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 manakin 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 put to work changes in the budget by increasing the outgo on the items related to hardware, software, and items outside IT service by 4% . The increase in the spend on these items is very censorious for the successful implementation of v irtual organisation that Riordan manufacturing intends to implement.The increase in the spending on the outside IT service is in any case very critical because there is need to implement employee training for the perpetual implementation of entanglement establish business of Riordan manufacturing. Employee training is very critical for the smooth running of virtual organization. Employee will be in invest 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 heart-to-heart 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 tenacity of virtual organization. The contact for the virtual organization will consist of meshwork hosting, off site entropy storage, and hardware maintenance. The items revealed in the contract are very critical for the virtual organisation. Web hosting is indispensable for web base 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 o f the advantages of decrease in the operating costs is to increase the companys revenue, and this will head up to the increase in the yearly net profit of Riordan manufacturing. 2 mop up 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, Cha llenges And Success Factors in the Australian Banking and Fina