Page 197 - DMGT553_RETAIL_STORE_MANAGEMENT

Retail Store Management

Notes
says, “The flexibility of Microsoft Dynamics RMS is impressive and we are extremely
happy with the “anytime support” we receive from System Solutions.”
Questions:
1. Analyze the case and interpret it.
2. Write down the case fact.
3. What do you conclude from it?

Source: http://www.microsoft.com/casestudies/Case_Study_Detail.aspx?casestudyid=710000000665

10.5 Summary

Planning Long reliant on a maze of disconnected spreadsheets and manual processes,
capital expense planning has historically been a thorn in the sides of organizations large
and small—the problems of incorporating multiple areas of expertise and a large degree
of inherent risk leading the best-intentioned projects to go wildly off plan.
With today’s emerging software solutions, however, this doesn’t have to be the case.

Building on the capabilities of Web-based budgeting and forecasting applications, these
solutions combine the specialized functionality required for capital expenditure planning
with guided workflow and process support to transform the planning of capital expenditures
into an accurate and reliable process.
Capital budgeting (or investment appraisal) is the planning process used to determine
whether a firm’s long term investments such as new machinery, replacement machinery,
new plants, new products, and research and development projects are worth pursuing.
The Private Finance Initiative (PFI) describes a partnership between the private and public
sectors in which the risks and rewards of financing long-term developments are transferred
to the private sector.

Managing the financial consequences of capital expenditure planning is especially
challenging—not surprising since estimating the state of a balance sheet, a dozen years
out or predicting project cash flows over a decade are exercises with an inherent amount
of uncertainty.
Planned and unplanned changes go with the territory.
Retailers can’t choose the right point of sale system for their business if they don’t first
understand the parts of the POS cash register.

10.6 Keywords

Balancing a cash register: The process of counting the money, reconciling the receipts and
balancing the cash drawer creates an internal control or accountability of the day’s transactions.
This process is called balancing a cash register.
Budget: A budget is a plan for your future income and expenditures that you can use as a
guideline for spending and saving.
Budgeting: It is the sum total of all activities involved in preparing budget.
Capital budgeting (or investment appraisal): It is the planning process used to determine whether
a firm’s long term investments such as new machinery, replacement machinery, new plants,
new products, and research and development projects are worth pursuing.

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