Study On China Southern Airlines’ Application Of The Strategic Map In The Strategic Budget Management

China has become the world’s second largest civil aviation market. In the national strategy, focus of domestic aviation industry changes from "bigger" to "stronger", as well as cultivating network airlines with international competitiveness. In this paper, case analysis method is mainly used to research. China Southern Airlines(CSA), the research object of this paper, is one of the three biggest airlines in China. It is now trying to improve competitive advantage through the "comprehensive budget management" (CBM). However, as the CBM being promoted deeply, CSA encountered lots of difficult problems in present mode. This paper attempts to work out how to allocate resources efficiently, achieve cost control, especially strategy cost control by improving CBM.As the subsidiaries and branches strategy should be instructed by the head quarter company, strategic budget model of total company level has important guidance and example effect on subsidiaries and branches, so this paper focuses on the corporate level strategy budget of top-level design and planning, but not limited to specific coding and the implementation of the system.This paper first briefly introduces the relevant research on the CBM, strategic budget and strategic map, which lays a theoretical foundation for CSA’s strategic budget. Secondly, it analyzes current status of implementation of CBM in CSA, finds out problems such as cost can’t be controlled through annual budget, blind investment leading to subsequent cost increase, bias on finance and short-term indicators, the root cause of these problems lies in the disconnect between the budget management, cost control and strategic planning.Then the paper gives improved ideas that using the strategic map and implement strategic budget. Thirdly, based on CSA’s strategic objectives and operation situation, this paper outlines the strategic map of the corporation, profit center and cost center, and puts forward a whole project for strategic budget, including metrics selection, the preparation, evaluation and adjustment of strategic budget, and supporting measures such as organization system, staff awareness, innovation, authorization, incentives and information technology. Moreover, the paper combines the strategic budget and the current annual budget management mode to re-plan functions. The combination of strategic budget and annual budget will make a new CBM system.This paper argues that CSA has the condition and the feasibility of the implementation of the strategic budget, suggests that CSA should design strategic map of corporate level firstly, then prepare strategic budget and schedule the resource allocation scheme with strategic map, and evaluate the performance by comparison of strategic tasks regularly, also establish the support system of strategic budget. Furthermore, by studying airline case of strategic budget and business practice, this paper proposes the solution ideas to build strategic budget model and main processes, provides references for CSA to further combine strategic budget with CBM and form strategic budget system, and references for other airlines in relevant research.