Exploring "Beyond Budgeting"

Corporate budgeting promotes corporate to establish a healthy internal controlling system. The budgeting process is a kind of technique to affirm corporate internal economic responsibility and increase the standard of financial control management. Using financial budgeting as corporate management instrument give rise to many advantages to the growth of the corporate and this is the reason why in the last decade both domestic and foreign country companies adopted financial budgeting as their corporate management instrument in their daily operating process. However, the effect from operating the financial budgeting of many companies does not reach up to the satisfaction of the company's expectations. What is the reason for this? Does "traditional" financial budgeting already out dated?In recent years, some foreign country companies have already dispensed traditional budgeting as an instrument for corporate management. Instead, a new set of budgeting model (Beyond Budgeting) has been established, which has gained good results.This thesis is try to probe into this area, analyzing the suitability of traditional budgeting in nowadays business environment, as well as exploring the method of "Beyond Budgeting" — a newly budgeting management insight. The exploration is based on a case study of a company (named A Company) who has been using traditional financial budgeting to manage the company for many years, and is now transferred to adapt to the method of "Beyond Budgeting" as its corporate management instrument. Content of the case study will concentrate on the problems that might arise during the transitional period, and how these problems are resolved. Finally, base on the outcomes from the case study to analyze whether "Beyond Budgeting" is a suitable management instrument in the 21~st century.