The Research On Strategic Guidance Budget Management System Of Hunan Tobacco Industry Co., Ltd.

Since the end of the 19th century, the budgeting management applied in the corporation has been continuously developing, showing its strong vitality. It has a higher demand on budget management for the changes of the external economic environment and the internal organization environment, technology, organizational innovation factors. The existing budget management in companies has exposed some of the unsatisfactory.In 2002, National Tobacco Company issued the "Budget management pilot scheme of tobacco industry, enterprises and institutions ", requested the tobacco corporation in all provinces to establish comprehensive budget management system, and implement the comprehensive budget management. From the implementation of the company in recent years, the internal management system and the basic work has been a certain improvement, but has not been able to combine the budget management with strategy. In 2006, Hunan tobacco industry was reorganized into a legal entity, and set up a new Hunan Tobacco Industry Co., Ltd., Management range and the difficulty for management control increase markedly. In such cases, it is particularly important to construct effective budget management system during the transition, to ensure the company's strategic objectives.In this paper, we analyzed the status of budget management in Hunan Tobacco Industry Co., Ltd., and found the budget management and corporate strategy seriously out of line in Hunan Tobacco Industry Co., Ltd., and the budget management system was difficult to implement. We think the main reason were that the lack of linked bonds between budget management and corporate strategy, and the separation on Operational flow between budget management and corporate strategy. We have viewed the latest theoretical research about strategic management and budget management at home and abroad, and found the Balanced Scorecard can link the budget management to corporate strategy very well, and to put forward the idea to construct the strategic direction budget management system. In this paper, we use the idea of the Balanced Scorecard, design the system of strategic direction key performance indicators from four aspects, such as financial, customer, internal processes, learning and growth, and linked budget management to corporate strategy very well. In order to ensure the achieve of budget target, we have drew up corresponding action plans, and assigned the targets to the various functional departments, made the department goals and strategic objectives in a high degree of unity, thus ensuring the further implementation of corporate strategy.