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Cases

Ohjelma
Bike Lease Finland

Bike Lease Finland

Leasing and maintenance of employee bicycles, digital services.

Ohjelma
Excelence Solutions

Excelence Solutions

Consulting and data analytics, expert services and consulting.

Ohjelma
Finnish Timber Oy

Finnish Timber Oy

Ecological log buildings and construction site processes, project business.

Ohjelma
Green Scape

Green Scape

Customized green wall services for B2B clients, service business.

Ohjelma
Marine Craft

Marine Craft

Customized motorboats, project delivery, manufacturing industry.

Ohjelma
Scandinavian Design

Scandinavian Design

Leasing and maintenance of company bicycles, digital services.

Task

Budgeting Exercise



In this task, the student prepares a simple income budget for the case company for the next year. They assess the development of sales and costs, compile the figures into an income budget, and interpret its significance for the company's finances. Additionally, the student considers the uncertainties of the budget and how to monitor its implementation throughout the year. This task practices budgeting in a practical way and supports the development of financial thinking.

Learning objectives

After completing the task, the student:
1. Can prepare a simple income budget for the case company and present it clearly.
2. Can make justified sales and cost assumptions based on financial information and the case description.
3. Understands the uncertainties of budgeting and identifies which key figures are monitored to assess the implementation of the budget.
4. Can interpret budget figures and connect them to the company's practical management.

Step by step

  1. Budgeting exercise

    Objective:
    The objective of the assignment is that the student is able to prepare a simple profit budget for the case company for the next year and make the related sales and cost assumptions consistently.

    Materials:

    • The selected case company description from the learning material.

    • A simplified starting point provided in the course or created by yourself (e.g. last year’s sales and cost structure).

    • The assignment is based on the case description and well-grounded assumptions about the development of the coming year.

    Assignment steps (instructions for the student):

    1. Briefly describe the starting point
      Write 5–8 sentences summarising:

      • what kind of business the case company operates

      • what the indicative result of the previous year was (e.g. revenue, main cost categories)

      • which factors affect the outlook for the coming year (e.g. demand, competition, investments).

    2. Make assumptions about sales
      Provide a short background text in which you explain:

      • the services/product groups for which you budget sales

      • changes in sales volume and price compared to the previous year (e.g. +5 percent sales volume, 2 percent price increase)

      • the main justifications for the assumptions (market situation, campaigns, new customers).
        Write the figures clearly, e.g. “Sales in product group A: €200,000”.

    3. Estimate costs by main categories
      Make corresponding assumptions for the following cost categories (you may adapt to the case):

      • materials and supplies / subcontracting

      • personnel expenses

      • marketing and sales

      • other fixed costs (e.g. rent, IT, administration).
        Write an estimated euro amount for each category and a short justification (e.g. “personnel costs increase by 3 percent due to pay rises and hiring one new employee”).

    4. Prepare a simple profit budget
      Compile the figures for one year:

      • budgeted revenue

      • budgeted cost categories (total and broken down)

      • estimated operating profit (revenue – costs).
        Present the profit budget as a clear list or table-like text, but also include a 5–7 sentence verbal interpretation: what the figures indicate about the coming year for the case company.

    5. Consider the uncertainties and monitoring ideas of the budget
      Finally, write a short reflection (5–7 sentences) in which you explain:

      • what the biggest uncertainties in the budget are (e.g. demand fluctuations, cost increases)

      • which indicators or reports management should follow during the year so that the budget can be adjusted if necessary.

    Submission and evaluation:
    Submit an output of about 1–2 pages showing:

    • a brief description of the case company’s starting point

    • clearly presented sales and cost assumptions and their justifications

    • the compiled profit budget and its verbal interpretation

    • reflection on the uncertainties and monitoring of the budget.

    Evaluation focuses on how well you:

    • make realistic and well-grounded assumptions from the case company’s perspective

    • prepare a logical and easy-to-follow profit budget

    • are able to connect the numbers to practical management questions.

    Recommended working time: approximately 45–60 minutes, individually or in pairs.

Tasks by audience and theme

University of applied sciences

Polytechnics and higher education studies.

68 tasks