Mgyoi

1. Introduction

Borealis is the outcome of a merger of the petrochemical divisions of Statoil Norway and Neste Oy Finland in 1994. It is a in full integrated and the biggest European polyolefins producer with production plants in diametric European countries and its head office in Copenhagen / Denmark. at once after the merger Borealis had to create a common budget for the combined entity. The separate budgets of Statoil and Neste in the past had the traditional purposes of budgets: thread planning and admitling easier for the management. The head of budgeting of Neste Oy became head of corporate control of Borealis and he was volitioning to leave the traditional budgeting behind and supervene upon it by a new and innovative management command overture with different purposes. During a period of three historic period he broken-down the traditional budgeting process and replaced it by a conglomerate of different management tools.

This case describes the reason wherefore and how it came to the different budgeting approach and what kind of concept was implemented sooner of the traditional budgeting process. It also includes the hopes, which the Borealis management had with the different approach and the results of it.



In the following shall be discussed what the advantages and the disadvantages of the new financial and steering dust are compared with the abandoned budgeting system either from a hypothetic and practical point of view. For this discussion the traditional budgeting process is exposit in the first place. It includes the budgeting process within Borealis and in theory. thus the new approach of Borealis is described in part 3. In part 4. the advantages will be discussed and in part 5 the disadvantages will be figured out and discussed. In the lastly part a conclusion will be done, which will try to judge if the new financial and steering approach within Borealis does really achieve its expected purposes compared with the abandoned budgeting system.

2. The abandoned...If you want to get a full essay, order it on our website: Ordercustompaper.com



If you want to get a full essay, wisit our page: write my paper