| There are many problems in the process of implementing comprehensive budget management in our country. Comprehensive budget management is often confined to the financial field and is not effective in combination with company’s strategy. It leads to obvious short-sighted behaviors and cannot support company’s long-term strategy. In order to solve these problems, it is necessary to implement comprehensive budget management system oriented by strategy because it can help companies achieve strategic objectives, allocate resources rationally and achieve goals for management, etc.This article adopts the method of case study research selecting S Steel Company as the object of case study. In recent years, the development of steel companies in China is in the winter. They are facing serious excess capacity, poor results of reducing the cost and improving the efficiency, low added-value of products and the increasing pressure of environmental protection. S Steel Company starts to explore comprehensive budget management early. However, it has some problems in different aspects including budget organization structure, budget preparation, execution and adjustment of budget, monitoring and evaluation of budget which do not adapt to S Steel Company’s strategy. Constructing comprehensive budget management system oriented by strategy helps S Steel Company understand internal and external environment and promote the effective use of resources serving for strategic objectives of S Steel Company.First, this article combs domestic and foreign literatures, relevant theories of strategy and comprehensive budget management and the relationship between them. Second, this article analyzes problems existing in S Steel Company’s original comprehensive budget management system. Meanwhile, it also analyzes the significance of constructing comprehensive budget management system oriented by strategy. Third, through SWOT analysis, S Steel Company’s strategy is established. At the Same time, it constructs a new comprehensive budget management system oriented by strategy through optimizing organization system, target system, budget preparation system, execution and adjustment of budget system and monitoring and evaluation of budget system based on this strategy. Last, preparations for this new system and safeguard measures are put forward. In this new comprehensive budget management system oriented by strategy, S Steel Company can fully understand its strengths, weakness, opportunities and threats. In addition, problems in the original comprehensive budget management system will be overcome and the effective allocation of resources will be realized through this new system. I hope this research will provide some suggestions to other steel companies. |
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