Consideration For The Application Of Strategic Budgeting In FAW Group

With the development of economic globalization, the competition amongenterprises are getting more and more acute. So is automobile industry. Nowadays,China has become the first vehicles production and sales country with the mostvolume. However, we are only at the stage of producing vehicles, moreover,producing vehicles for international car magnates. Our performance at the market ofour own brand is far from satisfaction, especially that in2011. It is the common targetof each self-owned brand car maker to create their own priorities and be at the leadingplace in the competitions.The year of2011is the starting year of the12thfive-year plan. Domesticautomobile groups have made their brilliant strategy, especially, each of them laysemphasize on their target of output and sales volume of their self-owned brandvehicles. To reach the target, continuous exploration is needed during operation.Strategic budget control is a good mean to support the realization of the target. It’sworthwhile to research and discuss how to exercise it well. The aim of this article is tofind a way which suits FAW Group through research.During the research, theories are linked to practices and further explores aremade at the current base. Firstly, concept and function are explained on strategicbudget and needs are explored; Secondly, budget development history home andabroad is researched; Thirdly, budget development history in FAW Group isintroduced and experiences are summarized; Fourthly, the inscape and implementaryconditions of budget control system is expatiated; Lastly, innovated explore is madeon the application of budget control in FAW Group.