The Research On Comprehensive Budget Management Based On Strategic Orientation

Comprehensive budget management is an effective means of management and control.It integrates the strategic planning,objective management,plan management,operation control,process control,financial management and performance management of an enterprise,carries on the strategy,starts the performance,links up the operation in the middle,and integrates all the production,supply and marketing personnel and property into a management system,aiming to promote the realization of the company’s decision-making objectives And employee performance.With the increasing number of companies implementing comprehensive budget management in our country,the recognition of the society for comprehensive budget management is also increasing rapidly.The comprehensive budget management in our country has gradually entered a mature period.The study of relevant practical cases is helpful to summarize practical experience and let more companies benefit and grow.Research object of this paper is A building materials company specializing in construction waterproof materials.In recent years,due to the gradual cooling of the real estate market in China,the construction industry has been in a downturn,leading to the shrinking of the building materials industry,the overall growth rate has slowed down significantly.In the face of increasingly fierce market competition,simple financial budget can no longer meet the competitive market environment,and some company operators only have the market concept without understanding the budget management,it often leads to failure,and the losses suffered by the company are often fatal and irreparable,while the company budget without strategic guidance is the budget without objectives,which cannot improve the core competitiveness and internal value of the enterprise,therefore,building a comprehensive budget management based on strategy is of great significance for modern enterprises.Based on the in-depth study of building materials company A,this paper puts forward the optimization scheme of comprehensive budget management system based on strategy,in order to provide reference for other companies in building waterproof industry.In terms of research methods,this paper first uses the historical analysis method,through consulting relevant literature,based on the theoretical basis,to sort out and summarize the development process and research achievements of comprehensive budget management in China and abroad,and then carry out the research and analysis of building materials company A.Then it uses case analysis method,combined with the characteristics of building materials waterproof industry to analyze the strategy of building materials company A,analyzes the budget management status and defects of building materials company A,and then designs a building materials company’s comprehensive budget management system based on the strategic orientation.This paper consists of six chapters.The first chapter introduces the research background,research significance,research ideas,research methods and innovations.The second chapter describes the theoretical basis of budget management,including principal-agent theory,control theory,incentive theory and corporate strategic management theory,and reviews the domestic and foreign literature related to comprehensive budget management,providing a theoretical basis for the follow-up study.The third chapter mainly introduces the organizational structure and operation management of building materials company A,and analyzes the current situation and disadvantages of the company’s comprehensive budget management.The fourth chapter is the core chapter of this paper.Firstly,the organization structure of comprehensive budget management of building materials company A is optimized.Then,the comprehensive budget management and strategic planning of building materials company A is connected by PEST,Michael Porter’s Five Forces Model analysis and balanced scorecard.After the strategic oriented budget objectives are determined,the budget preparation process and content are improved,and optimize the planning,control and assessment functions of comprehensive budget.The fifth chapter describes the final implementation effect of the optimization of the comprehensive budget management system and the necessary safeguard measures.The sixth chapter describes the conclusions and limitations of the study,summarizes the study results,and points out the shortcomings of the research and prospects for the future research direction.The main conclusions are as follows.First,the implementation of comprehensive budget management based on strategy can effectively solve the problem of disconnection between the previous budget objectives and strategic objectives,not only give full play to the role of comprehensive budget management in improving efficiency and integrating resources,but also effectively prevent short-sighted behavior,so that comprehensive budget management can serve the long-term business development of the company,in order to enhance the core competitiveness of the enterprise,so that the enterprise can grow healthily and continuously in the future.Second,in order to ensure the successful implementation of comprehensive budget management,company A must also establish a scientific organization and appropriate standard budget process,set up budget monitoring,adjustment,early warning and other control systems,and establish a perfect performance appraisal mechanism to promote the implementation of comprehensive budget management.Third,in order to improve the operation efficiency of comprehensive budget,personnel and technical support are also indispensable.Through regular training,employees can have a full understanding of comprehensive budget management and understand the company’s strategic planning;using ERP system,they can do specific data analysis,share data and accelerate the circulation of information,so that comprehensive budget management can respond to market changes in a timely manner.