A Case Study Of Jingmen Petrochemical Company Comprehensive Budget Management Application

In recent years, with the acceleration of global economic integration process, ourcountry is rapidly involved into the wave of world economic development. In this process,many corporations in our country get many beneficial chances, as a pillar industry inChina’s economic structure----petrochemical industry also has acquired abroad economicmarket.However, in the process of constant contact with other countries, the petrochemicalindustry is facing unprecedented competition. In the context of this industry, theSINOPEC, as one of the largest integrated energy and chemical company in China, beganto apply the comprehensive budget management to enhance management efficiency and tomaintain the leading position in this industry. However, during the application of thistheory in the various subsidiaries, there are some issues. For example, the comprehensivebudget management broke away from the corporate strategic goals, and theimplementation of the comprehensive budget lacked of informational support. Suchproblems led to preparation of the budget that placed too much emphasis on the form notthe content. As the result, corporations didn’t improve management efficiency, ultimately,not reaching the goal of the enterprise.This thesis focuses on the Jingmen petrochemical subsidiary of SINOPEC as thestudy case to amylase the application of the comprehensive budget management. Firstly,from four different aspects this paper defines the meaning of the comprehensive budgetmanagement and its main features. Then, the thesis focuses on the contents of thecomprehensive budget management and its application process. After that, the paperanalyzes the subsidiary Jingmen petrochemical subsidiary’s past comprehensive budgetmanagement application and existing problems. In order to solve these problems, theJingmen petrochemical subsidiary reconstructs the comprehensive budget managementframework, which combined with the comprehensive budget management theory, thebusiness strategy and the business characteristic. Finally, based on this new managementapplication, we make some recommendations in order to improve the business efficiency,and offer a few lessons that are beneficial for other companies, which have similarindustry background and operating characteristics.