The Application Of Comprehensive Budget Management In Sichuan Tobacco Company

Whereas international tobacco competition becoming increasingly fierce, the Chinese tobacco companies must effectively reform the existing system to improve its management. Comprehensive Budget Management (short for CBM) is a modern business management mode. By the integration of the business, funds and information and by the definite decentralization, authorization and evaluating credits etc, it can achieve the goal of carrying out strategy effectively, allocating resources, improve the level of management continuously. CBM has been proven one of first-rate enterprise management tools. Due to different strategic goals, there are different models of CBM. But how to establish the Budget Management System adapting to Sichuan tobacco is a key and difficult work.This paper attempts to find out a Sichuan tobacco CBM system. On the basis of the relative theories and the actuality of Sichuan tobacco, the author analysis impersonally the main problems and cause in existing system. Finally, from the aspect of budget-making, controlling, harmonizing and examining, this paper puts forward practically that Sichuan tobacco should establish and perfect its own Budget management system.The main part of this paper is composed of six chapters.Chapter One:A review of the theory of CBM. This chapter is mainly about the conception、features、functions of CBM.Chapter Two:Background analysis of CBM in Sichuan Tobacco. This chapter briefly accounts of the characters of production and operation and the general situation of collectivize management system of Sichuan Tobacco under the tobacco monopolization mechanism. This chapter also analyses the necessity of actualizing CBM upon Sichuan Tobacco based on the requirements of modern enterprise management mechanism, and considering of participating in market competition & improving competitiveness. A feasibility study of executing CBM upon Sichuan Tobacco is made in this paper.Chapter Three:Establishment of CBM upon Sichuan Tobacco. This chapter brings forward a feasible mode of implement CBM upon Sichuan Tobacco, which is directed by enterprise strategic layout, guided by target profit, based on control of cost & charge and focus on cash flow optimization. System structure and operation procedure of CBM in the proposed mode is introduced. This chapter comprehensively illuminates how to execute the budget workout in different aspects including budget index system, content and work procedure of budget workout.Chapter Four:Establishment of a CBM Information System upon Sichuan Tobacco. This chapter introduces the way in which Sichuan Tobacco to build a CBM Information System which is fully according with his target and mode of CBM.Chapter Five:How to build Comprehensive budget management system.Chapter Six:Comments and prediction on the achievement of the Comprehensive budget management system.