Research On Budget Management Based On Strategy Orientation

Budget management is a major method of the enterprise internal management and control,and it is also a modern management mode which integrates systematic,strategic and humanistic ideas.From the initial function of planning and coordinating the development of production,budget management has gradually evolved into a management mechanism with the functions of control,incentive and evaluation to comprehensively implement the strategic principles of the enterprise.Hence,it has been at the core of the internal control system of the enterprise.At present,most enterprises in the developed countries with a certain scale have accepted and insisted on using this method.In China,there are also some large and medium-sized enterprises which have begun to implement budget management,but in general,the application of budget management in China’s enterprises is not universal.In recent years,China’s highway enterprises are in the period of rapid development in infrastructure construction.As a result of the rapid development of the enterprises and the large capital volume,high financing demand and fierce market competition,the enterprises are also looking for new profit growth points,and the necessity of budget management has become increasingly apparent.In order to improve the operating efficiency and enhance the competitiveness of the enterprises,many highway enterprises have changed the original rough financial management mode,and gradually introduced the concept and method of budget management.Although implementing the budget management,some enterprises have insufficient knowledge of budget management and its significance.At the same time,the budget management of most highway enterprises is not mature due to many factors,such as budget preparation,budget implementation and unscientific budget assessment,and there is a big gap between the application level of these enterprises and the enterprises of the developed countries.In particular,corporate budget management is separated from strategic management.Although many enterprises have made simple or detailed strategic development plans in combination with the internal and external environment,budget management is still a tool for profit management and has not been integrated into the thinking of strategic management.This kind of budget management is not well combined with strategic management.It fails to form the coordinated management of budget and strategy,and promote the long-term healthy development of the enterprises.Therefore,it is necessary to combine budget management with strategic management and build a budget management system based on strategic orientation.This thesis combines the budget strategy theory with the case study.Focusing on the strategy-oriented budget management,it has researched the budget management of Company A.This thesis consists of five parts.The first part is the introduction,which mainly introduces the research background and significance,research methods and contents,domestic and foreign research status,research ideas and methods.The second part introduces the theoretical basis of strategic orientation and budget management.The third part analyzes the current situation of Company A from the aspects of strategic management and budget management.The fourth part summarizes the performance of Company A’s budget management lack of strategic thinking,and puts forward the necessity of strengthening the budget management.The fifth part designs Company A’s budget management mode based on strategic orientation.Finally,it is the summary of this thesis and the prospect of future research.Generally speaking,this thesis takes strategic management and budget management as the research starting point.On the basis of synthetically summarizing and concretely analyzing the basic theory,this thesis puts forward the frame of budget management system with strategic orientation.With the help of the strategic map and other management tools,we could link up strategy implementation and budget management,to ensure the support of the budget to the strategy.After analyzing the budget management environment,the author knows that the external environment cannot be changed,but the author can fully understand the external environment and use the internal environment effectively.The role of budget management can be improved from five aspects,such as establishing an effective budget management organization,determining the budget objectives based on strategic orientation,effectively controlling the budget implementation process,doing a good job in the assessment of budget management based on strategic orientation,and strengthening the management’s understanding of budget management.In short,this thesis aims to build a workable and operable strategic budget management system in order to carry out the practice of the enterprise budget management more effectively.