The Construction Of China Lucky Film's Total Budget Base On Value Chain

After mid-1980s, enterprises are facing changes in the environment which has shaken the foundation and prerequisite of the traditional budget management. Deficiencies of traditional comprehensive budget in integrating corporate resource and concerning the creation of value have been gradually emerging. How to distribute the limited resource to value-added activities and achieve the maximization of enterprise value have become mutual issues of the theory and practice circles. Through the Business Process Reengineering base on value chain of China Lucky Film Corporation, this paper tries to achieve the fusion of enterprise resources integration and value creation. The conclusion and contribution of this paper mainly include three following aspects.First, base on reviewing foreign and domestic classical literature and summarizing, evaluating research results, this paper puts forward a framework of total budget management, which distributes enterprise resource reasonably base on value chain analysis and optimization of business process integration, taking customer value-added as direction, enterprise value-added as target, having the product line as unit to determine the value chain and resources causes. The new model improves the traditional budgeting method which bases on scheme and transfers weightiness from cost reduction to value increasing. It provides a new idea for enterprises to implement total budget management and realize the unification of business flow, value flow and information flow.Second, according to China Lucky Film Group's actual conditions, this paper constructs a total budget management mode: (1) Confirm profit target combining with customer value and corporate strategic objectives; (2) Optimize business process base on analyzing value chain and added-value; (3) Taking process as unit, distribute enterprise resource in accordance with operating motivation and added-value; (4) Design total budget responsible indexes with balanced score card; (5) Perfect budget implementation, adjustment processes and provide an evaluation.Third, summarizing experience of the application, this paper concludes that full supporting of senior leaders, establishing computer early-alarm information system, constructing incentive and restrictive mechanism effectively are key factors that total budget management mode base on value chain take effect.