The Optimization Design For The Strategic Budget Management System Of CRRC M Co.,Ltd.

Nowadays,the fast-changing and highly competitive market economy environment has made the corporate strategy play a more important role than before.The strategy goal of an enterprise,is a developing goal taking the internal and external environment and other related factors all into consideration.It provides a guideline to help the enterprises allocate their resources rationally and determines their development directions,so it is crucial to the enterprises.Especially for Chinese enterprises,facing the "new normal" and mounting downward economic pressure,to achieve the long-term development in the fierce competition,they must formulate reasonable development strategies and carry them out effectively.However,the reality is that,although many enterprises have their own strategic plans,most of the plans are difficult to carry out effectively,and some business activities are not even implemented in accordance with strategic plans.The cohesion between strategic objectives and strategic implementation has become the focus of attention.There is an old saying,“Preparedness ensures success,unpreparedness spells failure.” Budget management,as one of the most important tools of enterprise management and an effective means of implementing business strategy quantitatively,it plays an important role in internal control and enterprise resource allocation.Therefore,the enterprise strategy and budget management must be integrated effectively,optimizing the allocation of resources,improving the operational efficiency,so that the budget management could be a bridge between business strategy and business activities,ensuring the implement of strategic objectives.Then,the idea of strategic budget comes into being.Strategic budget management focuses on maximizing the corporate value,beginning with the strategic goal,and attaches importance to both financial and non-financial information.In these ways,it achieves the effective allocation of enterprise resources,makes the budget management adapt to the changing market environment,and provides strong support for long-term development of enterprises.Therefore,the strategic budget management is the future direction of enterprise budget management.So,to improve the management capacity and core competitiveness,enterprises should follow the pace of the times,change the backward budget management model,update the original budget management ideas,and promote the healthy development of enterprises.The Company M selected in this paper is a company of 50 years’ history.It is the key enterprise in R&D and production of railway wagons,bogies and brake systems of CRRC,it is also the standard-setting enterprise in railway fastener industry,“National High-tech Enterprise” and “Informatization & Industrialization Integration” enterprise.In recent years,China’s economic development has entered the “new normal”,the profits of railway enterprises are further compressed,forcing the subsidiaries of CRRC to innovate in business administration,improve the management level,and promote the company’s overall benefits effectively.Under the circumstances,the shortcomings of Company M’s existing budget management system are increasingly prominent,which restricts the guaranteed effect on achieving the strategic goal of Company M.Therefore,to achieve the strategic development,optimizing the existing budget management system is Company M’s practical demand.The main method of this paper is case study,and this paper takes Company M as research object.Firstly,the research background,research significance,research ideas,research method and the existing researches are discussed and reviewed in this paper,which lays the theoretical foundation of the paper.Then,this paper introduces the present situation of budget management of Company M,based on the strategic budget management theory,this paper analyzes the deficiencies of existing budget management and the necessity of implementing strategic budget management in Company M,which lays the realistic foundation of the follow-up study.Based on the overall strategy of Company M,the paper puts forward the establishment ideas and principles of Company M’s strategic budget management system,and then clears the optimization direction of organization system,target system and informatization construction,and then puts forward the whole process optimization design plan from the aspects of budget planning.Finally,to ensure the effective implementation of the system,from the aspects of organization,corporate culture,internal control and risk management,informatization construction,human resource and others,it explores the protection mechanism of strategic budget management system.In the last part,the author concludes this paper,presenting the shortcomings and the prospect of future research.By studying the case on the strategic and budget management practice of Company M,the strategic budget management system is applied to the management practice of Company M,which will achieve the effective integration of budget management and strategy,so that,by the support of budget management,the strategic objectives can be fully implemented through the enterprise activities.This paper also proposes the solutions to the construction pattern and main processes of strategic budget management model,meanwhile,it establishes the support system of strategic budget management.In addition,it provides references for Company M and other subsidiaries of CRRC to further combine strategy with comprehensive budget management and form strategic budget management system,and references for other related enterprises in relevant researches.