The Comprehensive Budget Management System And Its Implementation In M-Group

In current sluggish economic environment at home and abroad as well as increasingly competitive situation, enterprises and group companies face the challenge to maintain the enterprise market share and profitability, to obtain an invincible position and to develop the brands.Although various large group companies have different management models, they focus on strategic planning goals in the operation and management. Most companies have experienced business starting, growth, maturity and declining stages, but fewer companies can maintain the everlasting business. What is the reason on earth? Because only the minority of the companies can always maintain continuous advance and innovation, delicate management, crisis awareness, the implementation of total budget management and the collaboration among various departments around the business objectives. It is of great significance to discuss and explore the ways to realize the business power, to maintain increasing business, leading scale and profitability, to obtain excellent market reputation and brand, to fully utilize corporate resources for improving the business service and to promote all levels of management to focus on the joint operation.For the purpose of further study of the overall budget management, the paper structure is divided into four chapters. Chapter1deals with the theories, concepts, functions, and essential roles of overall budget management as well as the budget system. Chapter2mainly deals with the effective and scientific measures of organization and implementation of total budget management. Taking Company M as an example, Chapter3is mainly focused on the ways that Company M implements total budget management, including arrangement and planning of flexible budgeting system and KPI budget system of various departments, the establishment of simple agile organization for reducing risks and improving profitability, making good use of existing production capacity and idle assets, enhancing the scale and profitability, promoting cost reduction, implementation of the optimal allocation of resources, exploiting management collaboration under the matrix management, achieving delicate management and promoting the increase in profitability and scale proportion. Furthermore, we focus on the innovation in the study of budget system to promote budget assumption under the future scale changes, thus achieving stable operation independent from operation environment changes. In Chapter4, in order to guarantee reasonable budget system, applicable standards and appropriate management practices, we propose the measures to deal with potential problems in total budget management, such as seeking for short-term indexes other than long-term indexes from the perspective of profits, unplanned cost, unbalanced resource allocation and waste. In this way, enterprises can play the efficient guiding role of budget management while maintain the rigidity and flexibility of budget system for business.I believe that total budget management system shall be studied in the following aspects: price policy system configuration, reasonable planning of resources arrangement, cost reduction through the material-expense separation, the acquisition of operation data during management process with a highly integrated IT budget system, integrating information flow into total budget management system, achieving early warning function of budget system and the establishment of early warning models, automatic configuration of resources, business check sheet and other operating dynamic control initiatives.