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Rodolfo Business Today, Most Business Enterprises Function Essay

Rodolfo Business Today, most business enterprises function in an integrated way. Decisions, for example, are based not only on what is best for the bottom line, but also how the bottom line interacts with other elements of the business. Other elements include issues such as accounting and ethics. Many and varied integrations need to be made to ensure that business decisions are as sound as possible not only for the profitability of a business such as Rodolfo, but also for how such a business interacts with is environment in terms of both human and non-human elements. In this way, Rodolfo needs to take into account the general ethics of its operations and its interaction with the environment to ensure optimal operations and as much longevity as possible. Hence, Rodolfo needs to consider its budget, performance reports, ethics, and accounting information when creating its decision-making processes for future excellence.

The first important component of the decision-making process is budgeting. Indeed, this is a major important component of both individual life and business. Without a sound budget, sound decisions are impossible. The company budget includes several components. For Rodolfo, staffing, sales and marketing, employee motivation, and expansion are among the most important decisions to be made on an annual basis. These need to be budgeted carefully to ensure that the company does not spend more money than is viable. At the same time, the balance between what is deemed necessary to maintain the company's competitive edge and the funding allocated for such actions need to be maintained (Anderson, 2013).

For Rodolfo, staffing needs are considered in terms of whether any key personnel need to be replaced on a temporary or permanent basis. Additional staff need to be appointed on an as-needed basis, when new departments or expansion is intended. At the start of each financial year, an analysis and planning effort will reveal staffing needs, with a budget allocated for recruiting and salaries.

Sales and marketing are a far more constant budgeting need than personnel appointments. Decisions regarding a budget for this...

For such decisions, Rodolfo's marketing and sales team need to be actively involved. Indeed, detailed reports of data from previous years can effectively guide marketing budget decisions for the year to come.
Motivation is an extremely important part of budgeting. To maintain a happy and motivated workforce, Rodolfo needs to allocate a proportion of its budget to ensure not only employee satisfaction and safety, but also motivation. Decisions regarding bonuses and incentives such as awards and employee holidays should be part of the budgeting process.

On the other hand, expansion is perhaps the least important part of budgeting decisions. A company should expand when it has sufficient surplus funding to do so and when the size of its operations warrant it. This part of the budgeting process should be managed very carefully to ensure that expansion does not occur prematurely. Rodolfo's business has been doing well on the local scale and could possibly expand, but only with caution and only when it can ensure favorable competition with local dealers.

Competition and accounting, however, cannot occur without a sound basis of ethics. Too many companies in both early and recent history have fallen prey to unethical accounting practices. While these could be profitable in the short-term, the revelation of such practices in the past have led to the downfall of many a giant, including Enron and others like it (Senaratne, 2011). Hence, contemporary businesses should take great care to let ethics be the guide of their accounting practices and decisions. For Rodolfo, the scenario is no different. A company like Rodolfo will be employing accountants for the management of its incoming funding and outgoing expenditures. It is vital to ensure the ethical nature of accounting practices, since this is what will determine the long-term reputation, and possibly the longevity, of Rodolfo. One way in which to ensure that accounting practices are sound is to outsource auditing to external entities. Furthermore,…

Sources used in this document:
References

Anderson, A. (2013). How does Budgeting help Managers in Business Decision Making? Retrieved from: http://www.ehow.com/info_7743066_budgeting-managers-business-decision-making.html

McMillan, D. (2012, Nov-Dec). How to Write Performance Analysis that Truly Enhances Decision Making. Retrieved from: http://www.bscol.se/_wcm/documents/How%20to%20write%20analysis.pdf

Senaratne, S. (2011, Jul-Aug). The role of ethics in accounting. Retrieved from: http://www.cimaglobal.com/Thought-leadership/Newsletters/Regional/The-CIMA-Edge-South-Asia-and-Middle-East/20111/July -- August-2011/The-role-of-ethics-in-accounting/
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