| In China, we always say that " One can make it with an intention,or you will fail without it.", domestic and foreign enterprises managers have been use budget management for many years. Traditional budget management can not fullfill the changing market environment. The shortcoming of traditional budget management is that it neglect the great importance of change in business environment, which makes more drawbacks appear in the actual implementation process.It also lead to uncertainty of business development, and the lack of long-term strategic objective guidelines and other issues. Therefore, scholars have never stopped their footsteps to explore budget management.Modern economic development propose the new request for the companies, they should form strategic partnership with competitors or up-and-down companies to achieve the win-win situation, to get more profits, rather than focus on their own development. Therefore, the introduction of enterprise value chain analysis to budget management will be more scientific, comprehensive and reasonable.Based on Value Chain Analysis,need to analyse the value chain from the view of transverse, vertical and internal before budget begin,. Analyse the transverse value chain, the purpose is to identify the company’s strategic business objectives, to make it more reasonable; analyse the vertical value chain in order to clear the location in industry, and then choose the more suitable partner; internal value chain analysis, the purpose is to improve the efficiency and coordination and rational processes, eliminate non-value-added jobs.This paper systematically elaborate the theory of the value chain and the enterprise performance management, and how they combine.value chain analysis to reduce the deficiencies in the traditional budget management. Mainly from the transverse, vertical and internal. Finally, the reality of companies to optimize and improve the build out of the system, to solve the questions of the company in the budget management.And there is a summarize in the end of the paper. |
