Standard Format for a Business Brief in the MBA Program Studentsin the MBA program are expected to adhere to the following when completing a business brief. 1. 12-point Serif font (TimesNew Roman or Courier). 2. Single-spaced within paragraphs; double-spaced between paragraphs. 3. Paragraphs are to be left justified. 4. 1-inch margins at the top, bottom, left, and right of every page. 5. No title page. 6. Place important points or detailsinto lists. The paragraphs provide context for the lists. 7. Phrases not to use in a business brief, unless you have been asked/hired to specifically provide a recommendation: I think… I believe… I feel… In my opinion,… 8. Phrases to use or something similar in a business brief that are appropriate in any analytical discussion: The data shows… Research studies point out… The analysis indicates… Studies demonstrate… Forecast indicates… 9. Complete sentences, correct grammar, correct spelling, and accurate punctuation is expected. 10. Absence of typographical errors 11. Citations within the body of the text follow APA format. Note: Citations are not always required. Read the instructionsin the assignment. 12. Reference list (if necessary)starts on a new page and follows proper APA format. 13. Images, graphs, charts, or othertypes of visuals are considered to be figuresin APA format and must adhere to proper APA formatting. 14. Follow the business brief layout below: Header: approximately 1/8 of the business brief Opening, Context and Task: approximately 1/4 of the business brief Summary, Discussion Segment: approximately 1/2 of the business brief Closing Segment, Necessary Attachments: approximately 1/8 of the business brief Last updated 2/4/2013

Ron Maurer, Assignment 4-1, MBA 733 E1FF, Prof. Davis, January 24, 2012 To: Margot Fraser Founder, CEO & Chairman of the Board Birkenstock Footprint Sandals, Inc. From: Ron Maurer Subject: Comprehensive Budgeting Date: 01/24/2012 Business Brief Comprehensive budgeting provides managers the ability to: promote coordination and communication among business units; provide a framework for judging performance and facilitating learning; and motivate managers and other employees (Horngren, Datar, & Rajan, 2012). Birkenstock manufactures two styles of sandals: regular and deluxe- each style requires differing amounts of materials, labor, and set up hours (Horngren et al., 2012). The comprehensive budget shown in Appendix A helps to determine the amount of direct materials and labor needed for each product throughout the budgeting period. This information is important for all activities in the company’s value chain from purchasing to manufacturing to distribution, selling, and marketing. Comprehensive budgeting also provides information regarding cash needs and profitability throughout the budgeting period. Coordination and Communication: Materials and Labor needs Birkenstock’s comprehensive budget for June indicates 10,750 DLH will be needed for the regular sandals and 20,650 DLH for the deluxe sandals. Based on this information, the company can determine if there will be any hiring needs or downsizing needs for the month. The company may have enough workers to produce the regular sandals but may not have enough workers for to produce the deluxe sandals- especially if the two products require workers with differing skill sets. The direct materials budget provides information for purchasing so the company does not run out of direct materials during the month. For example, 7,220 square yards of cloth and 5900 square yards of wood will need to be purchased during the month of June. Purchases will need to be received before beginning inventories are exhausted. Judging Performance, Learning, and Motivation The comprehensive budget provides a framework for which actual results can be compared to. For example, the budgeted income statement indicates the expected gross margin from expected sales is $140,437, or 26% of sales, and a net income of $83,687, or 15% of sales. Actual results can be compared to the budgeted amounts to judge performance and the variances in revenues and costs can be examined so that future performance can be improved. For example, if actual costs of goods sold are greater than the budgeted amount, then the company can investigate the reasons for the higher costs and determine how to improve cost control in the future. Communicating the comprehensive budget to all departments in the company’s value chain can motivate managers and employees to achieve the expected performance outlined in the budget as long the goals are perceived as achievable and not impossible. In this way, the goals and objectives of managers and employees are aligned with the company’s goals and objectives. Ron Maurer, Assignment 4-1, MBA 733 E1FF, Prof. Davis, January 24, 2012 Expected Profitability Perhaps one the best advantage of a comprehensive budget is it provides an outlook as to the expected profitability or financial health of the organization. For example, the budgeted income statement indicates the company is expected to make a net income of $83.687 in June. But will the company see sufficient cash flow from operations to cover its short and long term financial responsibilities? The cash budget for June indicates the company is in a healthy financial position. Expected cash receipts from customers are $535,200, which is sufficient to cover the expected cash disbursements needed for the month- $455,292. The expected cash balance at the end of the month is $85,698, which is over 13 times higher than the cash balance at the beginning of the month. As you can see, the comprehensive budgeting process at Birkenstock is a valuable tool for all activities in the company’s value chain from purchasing to manufacturing to distribution and sales. It also provides valuable information for judging performance, future learning and developing strategic planning. Ron Maurer, Assignment 4-1, MBA 733 E1FF, Prof. Davis, January 24, 2012 References Horngren, C., Datar, S., & Rajan, M. (2012). Cost accounting: A managerial emphasis. (14th ed.). Boston: Pearson Prentice Hall. Ron Maurer, Assignment 4-1, MBA 733 E1FF, Prof. Davis, January 24, 2012 Appendix A Worksheet Ron Maurer, Assignment 4-1, MBA 733 E1FF, Prof. Davis, January 24, 2012 Appendix B Grading Rubric Criteria Unacceptable Acceptable Proficient Student Score and Comments Accurately completes the CLP worksheet. Does not accurately complete the CLP worksheet. (0-11 points) For the most part, accurately completes the CLP worksheet and fulfills assignment requirements. (12-13 points) Accurately completes the CLP worksheet and demonstrates solid ability to accomplish the assignment. (14-15 points) Develops an opening paragraph to discuss the case. Vaguely addresses and develops the opening paragraph or completely off the topic. (0-7 points) Addresses and develops the opening paragraph and, for the most part, fulfills assignment requirements. (8 points) Addresses and develops the opening paragraph and demonstrates solid ability to accomplish the assignment. (9-10 points) Develops an analysis section of the case using percentages and relevant dollar totals/balances. Vaguely addresses and develops the pricing objective requirements or completely off the topic. (0-7 points) Addresses and develops the analysis section and, for the most part, fulfills assignment requirements. (8 points) Addresses and develops the analysis section and demonstrates solid ability to accomplish the assignment. (9-10 points) Develops a conclusion. Vaguely addresses and develops the conclusion section or completely off the topic. (0-7 points) Addresses and develops the conclusion section and, for the most part, fulfills assignment requirements. (8 points) Addresses and develops the conclusion section and demonstrates solid ability to accomplish the assignment. (9-10 points) Ron Maurer, Assignment 4-1, MBA 733 E1FF, Prof. Davis, January 24, 2012 Criteria Unacceptable Acceptable Proficient Student Score and Comments Integrates established accounting principles into the discussion. Rarely integrates established accounting principles into the discussion. (0-3 points) For the most part, does a good job of integrating established accounting principles into the discussion. (4 points) Consistently does a good job of integrating established accounting principles into the discussion. (5 points) Synthesizes relevant information and materials to provide evidence of critical thought. Synthesizes information at a minimal level. (0-3 points) For the most part, effectively synthesizes information, which supports main ideas. (4 points) Consistently and effectively synthesizes information, which provides strong support to main ideas. (5 points) Develops ideas with clarity and logic. Demonstrates little clarity and logic. Readers have difficulty following the line of reasoning. (0-3 points) Develops ideas with clarity and logic. Readers can generally follow the line of reasoning. (4 points) Develops ideas with clarity and logic. Ideas flow smoothly from one to another and are clearly linked to each other. (5 points) Uses concrete language. Inadequate or minimal use of proper terminology in the field(s). Provides no specific examples or uses inadequate examples. (0-3 points) For the most part, uses proper terminology and provides specific examples. (4 points) Consistently uses proper terminology and provides specific examples to support ideas. (5 points) Ron Maurer, Assignment 4-1, MBA 733 E1FF, Prof. Davis, January 24, 2012 Criteria Unacceptable Acceptable Proficient Student Score and Comments Uses supporting documentation that has been properly references and cited. Inadequate or minimal use of supporting documentation or not properly referenced or cited. (0-3 points) For the most part, uses supporting documentation that is properly referenced and cited. (4 points) Consistently uses supporting documentation that is properly referenced and cited. (5 points) Considered holistically, demonstrates the ability to write at the graduate level. Considered holistically, the student demonstrates an inadequate ability to write at the graduate level. (0-3 points) Considered holistically, the student demonstrates an acceptable ability to write at the graduate level. (4points) Considered holistically, the student demonstrates a proficient ability to write at the graduate level. (5 points) Total Points