The Research On Budget Optimization For K Chain Catering Company

In recent years,due to the impact of the external economic environment,the cost of many chain catering enterprises has risen substantially,which quickly eroded their profitability and threatened their survival.With an aim to survive and further expand in such critical market environment,many enterprises came to be more and more aware of the importance of budget management.Budget management of the enterprises is a powerful management tool which decides optimal allocation of resources,reduces costs,improves profitability,and provides guidance to daily business activities.Meanwhile,it aligns the operation of the enterprises with the strategic goal of the enterprises,thus is fundamental in many senses.Budget preparation is the foundation of budget management,the quality of which directly influences the budget implementation.In this paper,we start with the status quo of K chain catering enterprise's budget;then we point out the underlying problems in its budget management;furtherly we provide in-depth analysis of the proposed solution to the problems;in the last,we verify the effectiveness of the solution in practice.This paper consists of three parts:In the first part,we firstly state the research background,the significance,and the framework of our research.Then we introduce the up-to-date related theories of budgeting and budget preparation,both domestic and abroad.This part lays the theoretical foundation for the follow-up study.In the second part,we introduce the organization profile and the budgeting process of the K chain catering enterprise.Through the analysis of the budget implementation,we point out the problems in the preparation process,and further analyze the causes.In the third part,we put forward solutions to the problems:ameliorating the budget management system,rationalizing the target setting,optimizing the preparation process,refining the target set-up,elaborating the budget control system and incentive mechanism,etc.And in the last we verify the effectiveness of our proposal in the budget preparation of FY2016.Finally,the conclusion is drawn as below:in face of fast-changing market environment,chain catering enterprises can effectively reduce the cost and enhance the profitability by taking a range of measures,including more refined and effective budget management,combined long-term and short-term budget objectives,more sensible allocation of internal resources,and enhanced monitoring as well as incentives.The optimization of the budget preparation process will help the chain catering enterprises to forge their own core competitiveness.