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Setting the sales budget: An exploratory study
Author(s) -
Grønhaug Kjell,
Ims Knut O.
Publication year - 1988
Publication title -
journal of behavioral decision making
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.136
H-Index - 76
eISSN - 1099-0771
pISSN - 0894-3257
DOI - 10.1002/bdm.3960010306
Subject(s) - competitor analysis , business , normative , marketing , product (mathematics) , process (computing) , sales and operations planning , set (abstract data type) , perspective (graphical) , exploratory research , production (economics) , sales management , normative model of decision making , industrial organization , economics , microeconomics , computer science , philosophy , geometry , mathematics , epistemology , artificial intelligence , sociology , anthropology , programming language , operating system
Abstract This article explores how the sales budget is set in a business organization. Findings from a longitudinal participant observation study revealed that the sales budget is considered of great importance to the organization as sales estimates serve as premises for planning of production and supply and new product developments. It was observed that the sales budget was based on a narrow, inner‐directed perspective, almost looking away from important environmental driving forces such as competitors and customers. The findings also showed that individuals involved in the sales budgeting process behaved opportunistically, influencing the budgetary process and outcomes. Theoretical and normative implications are highlighted.