Study On The Strategy-oriented Enterprises Comprehensive Budget Management System

As a major method for internal administration and control of an enterprise, Comprehensive Budget Management is also a modern administration pattern centralizing systematization and strategy theories and human-resource-based concepts. With the function of plan and production harmonization initially, Comprehensive Budget Management turns to have more function of control, encourage and evaluation later, which is developed to a comprehensive operating mechanism for execution of business policy and strategy and hence it is considered the core among internal enterprise control system. Therefore, enterprises with substantial business in developed countries adopt and persist in Comprehensive Budget Management. Some of large and medium enterprises in our country began to carry out Comprehensive Budget Management since 1990s' yet generally its application is not universal in China. Even some of our companies have adopt Comprehensive Budget Management, there are still differences in application effect of this method because we are still lack of understanding and practice of it and we still need further scientific approach to improve it.For the purpose of research, promotion, development and improvement of Comprehensive Budget Management in our country, this article begin with research of strategic administration theory and then put forwards a theoretical frame of the strategy-oriented Comprehensive Budget Management based on comprehensive summary and specific analysis of it. At the same time, through introduction of Balance scorecard, the article make integration of strategic management execution, strategic layout program and budget program, which would help to guarantee that budgeting is supportive to the strategy and then link budgeting purpose with strategy execution. Through analysis of structure and conditions of Comprehensive budget management, we could understand and make full use of the external conditions though we are not able to make any change of them. Meanwhile, we should reform and improve some internal conditions which would influence the function of budget management, such as establishing effective corporation administrative organization, financial management and authorization andrebuilding of internal business procedures, etc., which would contribute to construct a strategy-oriented Comprehensive budget management system. Based on the aforesaid expression, the article gives a discussion regarding construction of the sub-system in Comprehensive budget management such as Recycling System, Organization System, Content and Method System, Adjustment and Control System and Performance Evaluation System. Especially, in the construction of Recycling System, the article gives detailed discussion at the aspects of budgeting target and its finalization, index choice of budgeting target, disassembling of target profit and target cost. The article also gives a Multiagent Systems and Game Theory analysis for the negotiation scenes among different interests parties when they are making decisions of the budget targets. In the construction of Content and Method System, we give a discuss on budget preparation by optionally adopting the methods of Fixed Budget plus Regular Budget, Increment Budget, Flexible Budget, Zero-base Budget and Rolling Budget based on business features and demand of different companies. Apart form that, we give detailed discuss on Activity -Based budgeting based on Balance scorecard system. This would put strategy and task management for application of budgeting, which help to link budget with company strategy and help to enable employees to understand and manage their work and business procedures.To make a summary, through combination of Budget Administration theory with Economics, Management, Organization and Behavior Science, Systematic and Economics, etc., and based relative basic theories and application theories, this article makes a research of the strategy-oriented Comprehensive budget management at the aspects of construction of Recycling System, Organization System, Content and Method System, Adjustment and Control System and Performance Evaluation System. This aims to establish an operable Comprehensive budget management system so as to give effective guide to the practice of application of the Comprehensive budget management system.