Application Of Beyond Budgeting In Enterprise Group

Enterprise budgeting is to promote its building-up and improve inside control mechanism, to ascertain inside economic commitments, it is plays an important role in improving the level of financial management. Budgeting as a management tool having a lot of benefits to enterprise development, this is the main reason why many China-foreign enterprises concentrated efforts on the management system of budgeting during the past ten years in production and operating activities. However, the effect of budgeting in enterprises were not ideal as we thought, the model of traditional budgeting has being an obstacle to the development of enterprises.With information economy development, enterprise facing many uncertain factors of outside, and the enterprise's mission is to create value and realize a strategic target under new economy environment. The pattern of traditional budgeting is put particular emphasis on financial aims, run after the short-term prompting and fixed performance valuation. This does not meet the need of creating value and realizing strategic target. Beyond budgeting being one kind of new administration implement, emphasize target establishment, strategy, development and improvement, resource administration, adjustment, control of production cost, forecasts, measures and controls, reward and liability and so on. Based on this theory, budgeting management manage to rebuild BPR by using of BSC and value-based management, which is intention to remove negative effect of traditional budgeting's performance valuation. At the same time, attaching importance to environment of competition and the market demand, Enterprise is managed to make strategy effectively as guiding system; Enterprise also focus on structure management, completely evaluation, and empowered manager. BBRT designed several principles of beyond budget and guiding how to use in practice.The thesis is intention to analyses the inadaptability of traditional budgeting in new economic environment, and take advantage of beyond budgeting as a new management tool in company and groups improving its' process. The thesis start with the analysis of traditional budgeting model and point out it doesn't adapt to the development of modern enterprise, and then introduce the new management tool of beyond budgeting to Chinese enterprise. Combined with a particular case of A company, the thesis structured the frame of beyond budgeting: cost control based on Activity-based management, performance valuation based on benchmarking, implements of strategic target based on Balanced score card. Finally the thesis exhibits the achievement of transit of traditional budgeting to beyond budgeting, and testified beyond budgeting management is a useful tool in future economic environment.