Research On Budget Management Of Telecommunication Company

Since reform and opening up,large state-owned enterprises face an opportunity, and have got a great development. Telecommunication companies which have restructured gradually from the former post office become an enterprise gradually. With the development of the communication industry in our country and telecom market monopoly having been broken, telecom market competition becomes increasingly fierce. Telecommunications companies not only have the situation of the new market competition and 3G operation mode, but also conform to the needs of globe competition. They need participate in the international market competition and international capital operation. Under the inside and outside pressure, Telecommunication companies will make comprehensive budget management a management tool of innovation for improving their ability of market competition and resisting the risk. Comprehensive budget management (CBM) plays an important role in business administration. At present, many business groups have carried out CBM and have got many benefits from it. The telecommunication enterprise is the representative of the business groups and has made much practice and exploration on CBM. On the other hand, they also met many problems in practice, such as comprehensive budget management can't combine with strategy and business plan, no efficient control and supervision. In this paper, we will study the practice of CBM in Henan branch of China Unicom with relevant basic theory. This paper has four chapters:The first chapter introduces the background of this research, purpose and meaning of topic-choosing, research ideas and methods, and theoretical research in comprehensive budget management at home and abroad the achievements and problems, and build the framework for this research.The second chapter recollects the basic theory on the comprehensive budget management(BSC), which makes the basis of the following chapters. It includes discussing the BSC and budget management, analyzing the four aspects of the BSC in financial, customer, internal business processes, learning and growth, understanding strategic management of BSC. It discusses the importance of building performance evaluation. Finally, this chapter introduces the principal-agent theory and the theory of budget management.The third chapter introduces the basic situation of Henan branch of China Unicom. This chapter recollects implementing comprehensive budget management in the history, status and existing problems. This chapter tries solving some problems in budget management using the principal-agent theory.The fourth chapter expounds the combination of BSC with budget management. This chapter builds this budget management framework,and proposes suggestions to management of executing and controlling this budget management.