Improve The Execution Of Our Corporate Budget

In the modern market economy, the American enterprises obviously become a benchmark copied by other companies in the global world. What leads American enterprises to be a benchmark? According to an authoritative statistics in the 1980s, almost every large-scale American enterprises took comprehensive budgeting management which had been used by GE and Dupont for more than half a century. The percent is 100% that large production enterprises implemented comprehensive budgeting management and 97% the wholesale and retail merchant and 94% the transportation enterprises. The seemly outdated statistics show that, being a high-value management tool, after 60 years of market storm, the comprehensive budgeting management has mixed with management culture of American large companies and become their new wealth gene to pursue market benefit.Over the past 10 years, after innumerable market practices confirmation, Chinese large and medium-sized enterprises have gradually realized the value of comprehensive budgeting management, and confirmed and developed it by the way of Chinese characteristics. In September 2000, the national highest administrative department (the former economic and trading commission) issued the basic norms for stated-owned large and medium-sized enterprises to establish modern enterprise system and strengthen management. In the norms, domestic large and medium-sized enterprises were required to implement comprehensive budgeting management. In the following 5 years, comprehensive budgeting management became decisive and managerial core for many super-sized and large enterprises. Li Rongrong, the director of national commission of asset management, repeatedly emphasize on different occasions the importance of strengthening comprehensive budgeting management for the national and state-owned large and medium-sized enterprises. According to an incomplete statistics, at present nearly 1/3 state-owned enterprises have implemented comprehensive budgeting management in China.Comprehensive budgeting management has rooted in China, why it cannot lead a good effect just like in the United States? After a comprehensive analysis, we found that a big difference existed on implementing budget between Chinese enterprises and American enterprises. Chinese enterprises have poor budgeting implementation, which make it difficult to carry out a good system. More and more Chinese enterprises begin to realize that implementing a budget is far more difficult than making a budget. You can consult and learn a budget from other enterprises, but no one can help you to implement a budget, unless yourself. The ability of implementing budget is a powerful safeguard for an enterprise to complete budget.The thesis will focus on analyzing the reason of weak budgeting implementation in China, and elaborate the ways of increasing the ability of implementing budget for Chinese enterprises in three part: the mechanism of budgeting management, the will and skill of performers and implementing culture. The main contents are as follows.The first part is introduction, mainly including motivation to study, the research present situation, the definition of related concepts, the paper content and the innovative viewpoints.The second part points out the problems in the budgeting implementation. Firstly introduce the present situation of implementing budget in China, and then generalize the problems in the process of implementing budget.The third part deeply analyzes the reasons what lead the problems appear in the process of implementing budget. First of all, sum up the reason in three aspects: lack of a budgeting management mechanism that is good at implementing, inability of performers and lack of implementation culture. Next give a detailed analyze to each of the above three aspects.The forth part focuses on the channels how to solve the problems of weak budgeting implementation. This part also analyze in three aspects that responds with the third part, namely, establishing a budgeting management mechanism that is good at implementation, enhancing implementing ability of performers and fostering an excellent implementation culture.The fifth part, by the enlightenment of an example, explains how a company's budget transformed from a weak situation to a strong one and how the changes benefit the company today and tomorrow.Finally is the concluding part, in which, deficiency is pointed out.