Enterprise Groups In China Integrated Model Of The Overall Budget Management

To improve the competition ability of the enterprise groups, management structure of the enterprise groups needs to be perfected, and an efficient internal controlling mechanism should be built in order that the resources of the groups can be well utilized. Experiences form the west countries show that Overall Budget Management (OBM) has been an important part of the inside controlling mechanism of the enterprise groups. OBM influences the whole operation efficiency of enterprise group directly, and it has been one of the symbols that the management of enterprise groups has been fined. The research on OBM of enterprise groups is significant either in theory or practice, which includes the following advantages: guaranteeing the implementation of strategic of enterprise objective, reducing the venture, and maximizing the utilization of the resource.The theories on integration mode of OBM have been detailed in this paper, and a integration mode has been provided to overcome the inefficiency of the traditional OBM by involving value chain theory into OBM. This mode is an organic cycling system composed of 10 interactive function models which are described respectively, and their relationship has been detailed. The feasibility, necessity and efficiency of this mode have been demonstrated in this paper, and it showed this mode provides a new idea and method for the application of OBM in China. At last, a case in ZunYi Titanium Co.Ltd. is studied, and it shows that the main advantages of the integration mode are as follows: Important parts of the budget management can identified; The unreasonable business processes can be optimized; Budget goals and strategic objectivities can be combined effectively; The management and the competition ability of enterprise groups has been improved. In addition to, the case provides some good experiences about the application of the integration mode for other enterprise groups.