Analysis Of The Corporate Budget Management Theories And Their Operational Strategies

In order to fulfill its objectives of business development, the enterprise should establish its own management system seasoned with modern enterprise system, and make its operation keep to rules of economic activity, run and carry out its objectives orderly and efficiently, guided by its whole target. As part of modern enterprise management system, which universally adapted by the corporation of large and moderate scale in western developed countries, the science and importance of Budget Management have been gradually understood by the most of business of our country, so more and more enterprises implement their own Budget Management. However, these business have little experience and time in the practice of Budget Management, so they inevitably fall across many problems and deficiencies. Therefore, the paper goes deep into these issues and puts forward some reformatory ideas, which aimed at the enterprise's poor knowledge of Budget Management, singleness and blindness in process, method and start point of budget preparation, and specially the deficiencies in the queue principle of investment proposals.The paper firstly interprets the meaning and significance of enterprise Budget Management, probes into its essential characteristics, and puts forward that Budget Management is a compositive management activity, which integrated the corporation's strategy management, target management, system management, humanistic management, power control management, and value management, so, hold an very important role in enterprise management.Based on the budget setting process, the enterprise budget can be divided into imposed budget and participative budget, which both have its own virtue and deficiencies. The business can choose the appropriate method, complied with such factors as its own operation character, market environment, and target level of budget. According to budget preparative method, the enterprise budget can also be divided into fixed budget, flexible budget, probabilistic budget, rolling budget, and zero-based budget, etc. Different methods apply to budgeting of different demand and content, which make choices diversified. According to start point of different budget preparation, enterprise budget management can be divided into five patterns too, namely capital budget based start-point, production based start-point, sales based start-point, target costbased start-point (cost control), and target profit based start-point. Different patterns hold different character and adapt to different business, different business development phases, and different business objectives, which should make choices tactically. Aimed at the deficiencies of the queue principle of investment proposals in current capital budget, the paper puts forward some reformatory ideas base on enterprise development strategy. At the last part of the dissertation, the author combines the foregoing discussions and analyzes the experience and lessons from the implement of Budget Management in Zhuzhou Smelter. The author wishes that discussions and research could do some good to the implement of Enterprise Budget Management in our country.