A Study Of F Company’s Budgeting Based On Strategic Orientation

Budgeting is a comprehensive and systematic forecasting and planning of future business results.Not only can it guide enterprises to control resources rationally,but also can help enterprises to improve their business activities and achieve their strategic goals.There are many problems in the budgeting of some companies in China.The financial characteristics of the budget are outstanding and it is difficult to connect with the company’s strategy.The budgeting underlines nothing but financial figures,while the strategy underlines business culture and future development concerning non-financial factors,indicating that traditional budgeting lacks strategic relevance.Budgeting is often limited to short-term financial data lack of combining the company’s long-term strategy.To solve the above problems,it is necessary for us to promote strategic-oriented budgeting,and achieve rational resource allocation and long-term strategy.F Company adopts the traditional financial budgeting method and focused on the impact of historical financial factors as the basis of the company’s annual budgeting at the present time.This paper combines the characteristics of ship supporting industry and analyzes the problems in its budgeting according to the status of F Company budgeting.Through the analysis of the process,mode,content and method of F Company’s budgeting,it is found that F Company has established a more standardized budgeting process and method but it is impossible to effectively plan the enterprise resources in the implementation process,because the budgeting process is not effectively linked to the company’s development strategy.Strategic orientation makes budgeting an effective tool for internal control and management to optimize budgeting.This paper analyzes the necessity and feasibility of F Company’s strategic orientation budgeting,and then solves the problems existing in its budgeting,finds the coping strategies to solve the problems and put forward corresponding safeguard measures according to the development requirements of the company’s strategy which can effectively integrate various resources within the company and serve the company’s strategy to meet the needs of development.Through the case study of F Company,this paper explores how to establish a strategy-oriented budgeting to ensure the support of budgeting and it is of great significance for F Company to promote the efficient operation.