An Empirical Research On Strategic Budget Management Of Company A

Since1990s, the uncertainty of business environment has increased, the competition amongcompanies become more fierce, and the shortcomings of traditional budget has increasingly exposed,which can not meet the demand of long-term development of enterprises. The traditional budget simplyconsiders the financial indicators, which can not match with the strategic goals of enterprises. So budgetbecomes only a kind of form, its function can not be fully plays, which is difficult to meet the demand ofrapid development of internal and external environment. Strategic budget management is a powerfulapproach to support the realization of strategic goals, which can change the originally behindhand thinkingof budget management so that the enterprise can follow up with times, enhance competitiveness andimprove itself in steady and moderate way.With the rapid integration of global economy, most of enterprises in our company graduallystepped into international market, facing more severe tests and challenges. During the Twelfth five-yearstrategic plan, most of enterprises have formulated a five-year strategic plan. They need continuousexploration and adjustment during management process to make the strategic plan come true. Strategicbudget management begins with strategy and focus on the maximum of corporate value, and attachesimportance to financial and non-financial information to adapt the changes of business environment,achieve effective allocation of enterprise resource, and support strong power for sound development ofenterprise. Therefore, the strategic budget management is an irresistible trend of budget management ofenterprise in the future.This thesis makes a combination of literature review and case studies, on the foundation of literature study, the thesis makes further exploration. This thesis can be divided into six parts, firstly, theauthor introduces the study background and its significance, secondly, the author describes the relevanttheoretical conception of strategic budget management as the main topic, thirdly, it introduces the basicsituation of Company A, and analysis the current situation of budget management, and existing problems,the forth part aims to build strategic budget management system with unique advantages, to overcome theshortcoming of Company A to form a comprehensive budget management system, the fifth part mainlyintroduces the barrier of strategic budget management system and security mechanism, with a soundsystem, strategic budget management can be fully implemented and played its due role, which canestablish a good environment for budget management environment, and improve the strength andeffectiveness of the budget implementation. This thesis tries to combine strategy and budget managementthrough application of strategic budget management system in Company A to ensure the support onstrategy from budget, make strategic goal into practic, and achieve effective combination between strategyand budget.