Application And Improvement Of Comprehensive Budget Management In CSGC Group

Comprehensive budget management makes use of budget to allot, evaluate and control the financial and non-financial resources of each internal department and unit of an enterprise so as to effectively organize and coordinate the production and operation activities of the enterprise and complete the established business objectives. Since the comprehensive budget management came into being in the early 20th century in the United States, it has quickly become the standard operating procedure in enterprise management. As one of the few management methods, the comprehensive budget management integrates key problems of an organization, which plays a great role in promoting the development of modern industrial and commercial enterprises. With the western management ideas and the comprehensive budget management widely spread in our country, Chinese large-scale groups gradually realize that the comprehensive budget management, a tool of enterprise internal control, is an effective way of strengthening the enterprise's centralized management and control. Besides, they began to do further exploration and practice on the application of the comprehensive budget management in the groups of enterprise.Born out of administrative industry, CSGC Group Company was founded in 1999 and began to implement the comprehensive budget management within the group since 2000. For more than ten years of exploration and development, CSGC group has formed a set of moderately centralized financial control mode "SSRV" which is based on the comprehensive budget management. As a large state-owned corporation, CSGC group is one of the early large-scale groups in China to carry out financial centralized control and possesses the characteristics of industry diversification, group scale and rapid development. Selecting CSGC Group Company as the research object of the comprehensive budget management has certain practical significance. Based on the purpose of perfecting the comprehensive budget management mechanism in CSGC Group Company, this paper studies the comprehensive budget management from the aspects of theory and practice. On the basis of researching and analyzing the related theory of comprehensive budget management, the empirical research of the CSGC's comprehensive budget management cases has been considered from raising, analyzing and resolving problems. The paper researches the current situation of the comprehensive budget management in the group, summarizes its individual characteristics in implementing budget management, analyzes the representative problems in the process of implementing the comprehensive budget management, and puts forward the corresponding solutions of resolving these problems.The paper is divided into five chapters. The first chapter expounds the background of selecting the topic from both macro and micro aspects. It points out the purpose and significance of the research, and the basic ideas and research methods of the paper. The second chapter is mainly about the research of the basic theory of the comprehensive budget management, including its definition, content, process and functions. The third chapter is basically the analysis of the current situation of the comprehensive budget management in CSGS group. Firstly, it introduces the CSGS group from the aspects of group background, main products, competition situation and the group strategy. Secondly it introduces the exploration and development of the comprehensive budget management and the three stages of strategy-orientation budget, including the brief introduction of the financial control mode "SSRV",the scope and content of implementing the comprehensive budget. The procedures of implementing the management at present consist of the confirmation, implementation and control of the target. In addition to the analysis, adjustment and examination of budget are also introduced in this chapter. The fourth chapter summarizes the comprehensive budget and specifically analyzes the existing problems of the comprehensive budget management in CSGS group. These problems include the degree of matching between the comprehensive budget and the strategy, the ossification in the process of budget management, the trouble in the performance assessment, the contradictions between standardization and differentiation in the comprehensive budget, and the disconnection of financial budget and business budget, and so on. These problems are representatives in the process of putting the comprehensive budget management into practice. The fifth chapter puts forward the corresponding resolutions aiming at resolving the current problems, especially the two difficult problems in the course of practicing the comprehensive budget management, namely, how to effectively combine the strategy, budget and the examination, and how to resolve the trouble of the failure of the assessment and encouragement function in the comprehensive budget management. Finally, according to the characteristics of comprehensive budget management, the paper summarizes the comprehensive budget management mechanism in CSGC group from five aspects.