The Research On Application Of Comprehensive Budget Management In HY Group Co.,Ltd

With the accelerating pace of tobacco enterprises consolidation and reorganization, and the establishment of the patterns of large enterprises, big brands and big markets, the tobacco enterprises are facing an unprecedented managerial problem which is caused by the scale and scope expansion, and the serious problems of multi-level, slow decision-making, and tardy response. Facts have proved that, overall budget is one of the most effective ways to solve the problems above in enterprises at home and abroad. The tobacco enterprises adopt this method at the beginning of this century, but in practical using, there exist some troubles, such as rough outline, soft constraint, misclosure, and etc. In 2009, the world financial crisis has not bottomed out, real economic growth rate has fallen sharply, international and domestic economic situation is severe. Under these environment, the tobacco industry which usually be supported by the state policies also shows significant changes, such as the speed of growth momentum has slowed. The way of optimizing the allocation of resources and raising the internal control to safeguard the strategic targets and resist the impact of economic crisis has became the urgent requirement of every tobacco enterprise. This article has deeply analyzed the overall budget management’s present situation of HY Tobacco (Group) Co., Ltd, through revealing the problems and analyzing its corresponding causes, we give a series of suggestions for improvement, we expect overall budget management can play its connotation and function to upgrade the level of enterprise management and achieve the aims of planning future business activities, implementing strategic objectives, allocating resources efficiency, and providing management standards. At the same time, we hope that this research can provides some reference to the tobacco industry’s overall budget management.This article contains six chapters, the contents of each chapter are as follows: ChapterⅠ. Introduction. This part includes the introduction of the background, the mentalities, and the framework of the research, the problems that need to be resolved and the anticipatory goal.ChapterⅡ. Theoretical Analysis of comprehensive budget management. This chapter introduces the basic concepts, contents and characteristics, in addition to principles, methodology, organizational system of comprehensive budget management. It focuses on the contents of the budget and the establishment of budget responsibility network. It Stresses that all kinds of budgets are interdependent, nexus organic whole, and that the complete network of responsibility for the budget is the basic security for comprehensive budget management network to play its role.ChapterⅢ. The development and status quo of comprehensive budget management in domestic and foreign enterprises. This chapter describes the development evolution and current status of Budget management’s comprehensive in domestic and foreign enterprises, the common features and differences implementation during the process of implementation.ChapterⅣ. The implementation status of comprehensive budget management in HY Group. This chapter introduces the basic situation about HY Group and its comprehensive budget management which involves the organizational structure, content and features,in addition to the Programming, adjusting and controlling and the specific practices of reward and punishment evaluation.ChapterⅤ. The problems of comprehensive budget management in HY Group and its analysis. This chapter describes the problems in the aspects of the staff’ understanding and the quality, the programming, implementation control and evaluation during the implementation process of comprehensive budget management in HY Group. Then, it will Pointe out that because the company’s organizational system and the budget content is incomplete, and the Understanding of budget management is not in place, yet the overall accuracy of budget management is very low, the implementation of control measures are weak, restraint mechanism assessments miss. That is to say, the role of the company’s overall budget management only stays in the lower level of the plan to funds use, has not yet reached with the company strategy of combining effective allocation of resources. it hasn’t yet realize the goal of combining with the company strategy and effective allocation of resources.Chapter VI. Improvement suggestions for HY Group’comprehensive budget management, this chapter draws on the successful experience of the industry and put forward reasonable suggestions, which includes enhancing their understanding through full training, improving the organizational system and increasing budget accuracy by building a professional management team and budget responsibility network, sounding the processes of budgeting and auditing, establishing mutually interrelated and supported Budget index system, using ERP systems and budget management accounting ledger to strengthen process control, separating powers moderately and developing the budget assessment program to ensure the budget authority.The main contribution of this paper:It pointed out the main existing problems in the process of implementing the overall budget management of HY Group, the problems include simply equated overall budget with the funds using scheme, not set the awareness of strategies combination, these problems caused the design flaws of the budget index system and the relaxation of budget preparation, implementation and evaluation.It proposed specific improvement measures to combine overall budget and the corporate strategy, and establish budget- responsibility network, interrelated budget index system and business process -based dynamic information supervision and feedback mechanism. This paper has practical significance for HY Tobacco (Group) Co., Ltd. to improve its budget management and achieve budget comprehensiveness. For the similar tobacco companies to perfect their budget management, it is also a wide reference.The deficiency of this paper:There are some shortages, such as non-extensive applicability, not refining high enough, and unable to sublimate characteristics of individual level to overall level of commonality. Moreover, due to capacity limitations, this article failed to design a complete program of comprehensive budget management, it only enriched and perfected the existing budget program, so for non-tobacco companies it not have universal applicability.