Overall Budget Management Of Applied Research

In order to reach the profit target, the enterprise must have the control system over business implementation results and the standards of evaluation. The overall budgetary management is the core of the control and evaluation. Budgetary management has been used in foreign enterprises for years, and has been accepted by most of the Chinese manufacturing, services and non-profit organizations since China's reform and opening-up. In the constructing sector, overall budgetary management has only been used by few big and medium sized enterprises not including mine. The reality of years of high loss makes the author realize the urgency of implementing the overall budgetary management. The author sets up detailed overall budgetary management methods from the situations of the enterprise, starting by the basic concept of overall budgetary management, and aiming at the main existing problems of the enterprise. Chapter One makes a simple analysis of the existing problems of the enterprise in term of its current financial situation, and finds out that the real reason for the loss is the extremely high management cost and extremely low profitability of the main business, due to lack of effective control methods. An enterprise needs a good strategy first, but even the best strategy can fail without effective means realizing the strategic targets. The overall budgetary management is the effective means realizing the strategic targets of an enterprise. Chapter Two briefly introduces the definition, content, purposes, methods and procedures of overall budgetary management, and then the concept of diagnose control. The diagnose control system provides an important managing idea of overall budgetary management: to select key performance coefficients according the organizational targets, to set up the measuring standards, to record the implementation process, to correct the warps, to analyze the control reports, to evaluate the performance and to implement examination and awards. The purpose of this chapter is to provide theory base for building the overall budget, controlling, examining and awarding. Chapter Three is the core of this thesis. It mainly introduces the content of overall budgetary management in constructing enterprises and the control methods of the key business (the key performance coefficients), and the examination of the result of implementing the business budget and the ways of awarding.