Study On Budget Management Bases On Balanced Scorecard Of Norsk HDL

Multinational company is one of highly internationalized modes of businessoperation, the headquarter of MNC always process its whole operation with theintegrated platform of global resources. The quite significant problem that MNC arefacing are how to accurately collocate its assets or resources among all its branch andhow to make its resources be well utilized by all its subsidiary. Implementingcomprehensive budget management in the whole enterprise is an effectively way tocarry out these goals mentioned above. The enterprise need to control all its branchand subsidiary refer to its budget procedure and base on its strategic goals. At thesame time the performance review and the operation results evaluation are alsoindispensable.It is truly a hard nut to crack for those large enterprise to cope with the internalcontrol problems within their organization themselves, include how to set up thecomprehensive budget management system, eventhough they have many years ofexperience on business operation. Due to engaged in business activities in variousnations,the MNC have to face to and cope with the diverse economic situation,political institutions, legal norm, and cultural background. The differences withinvarious national circumstance and conditions diversify the effects and risks which theMNC are facing when they process globalization management activities.In practice,this paper introduced the problems on budget management that HDLQingdao branch are facing now. Try to find a more comprehensive and morereasonable budget management system base on The Balanced Scorecard, hope thesystem can adapt to the foreign enterprise in China mainland, and brings measuresand solutions accordingly, fully exert the ability on enterprise management andoperation of MNC. Propose to set up a comprehensive budget management systemrefer to the actual situation of the enterprise itself,which are not only in consistencywith the parent company but alsowith his own characteristics. Hope all these can help to find a better solution to solve all the problems that HDL Qingdao company arefalling into when the budget management are processed. Even more important, thepaper intend to discuss how to construct the comprehensive budget managementsystem base on BSC, and utilize the functions and advantages of budget managementsystem to raise the enterprises’ abilities on internal control and business operations. Inorder to avoid some unecessary risks which the foreign enterprises maybe will face tohenceforth and push the company developed steadily and speedly.From the four perspective of BSC: Financial,Customer, Internal Business andLearning, this paper try to analyze how to make enterprises to find a balance pointbetween financial and non-financial, outside and inside, short-term goals andlong-term goals,results and process, management and operation. All above mentionedwill be refered to discuss how to construct the strategy oriented comprehensive budgetmanagement system. Emphasize to construct the budget organization whichintroduced the BSC and set up the index system of budget system. Further to analyzethe Business Process Reengineering, BPR that combined with comprehensive budgetmanagement. Furthermore, the paper also analyzed operation on budget managementof HDL enterprise and its procedure on budget adjustment and the incentive schemeon the budget implementation based on BSC. At last, the paper illustrated theresearch deficiency on this aspect and brought forward the problems which wereexpected to be solved in the future.