The Construction Of Comprehensive Budget Management System Based On Value Chain Of Corporation A

With the changes of global economic pattern, the Chinese manufacturing market has become an important part of the global manufacturing market after entering the information economy epoch. In the fierce competition in the domestic manufacturing enterprises, the competition from international manufacturing enterprises is increasingly fierce. Faced with such challenges, Chinese manufacturing industry must establish a scientific management system to reflect the core competitive superiority and get considerable development.Since lots of domestic and foreign enterprises applied overall budget management, the budget system has developed gradually.It also made a lot contribution to the development of enterprises. However, with the rapid development of science and technology,since the influence of such factors as theautomated popularity, the traditional comprehensive budget management system has not been able to reach the requirements of modern enterprise development.Nowadays the focus of enterprise management control is no longer just meeting the planned production targets, but the value added and maximizes enterprise value. Overall budget management has new meaning inconjunctionwith value chain. Based on the value chain of comprehensive budget management, which stands in the perspective of value flow, according to the basic method of traditional budget management, using value chain analysis of the logic framework of the budget management to optimize the formulation, supervision and implementation process of a new means of management. It shows unique scientific and coordination in the process of adapting the internal and external changing environment of enterprise. And it also can achieve effective control on value chain for information flow, capital flow, and logistics.Corporation A, a machine tool manufacturing enterprise which the author investigated, is still practiced traditional overall budget management. The deficiencies of its budget management have become increasingly prominent which are urgently needed to be improved. The author tried to use the comprehensive budget management system based on value chain to help Corporation A to clarify its own strategic positioning accuracy in this industry,and pursue maximize enterprise value.This paper stands on the perspective of value chain, and re-examines the overall budget management system. The structure of this paper is divided into seven chapters.The first chapter is the introduction. It summarizes the frame of this article, introduces the background and points out the expected contribution. It also outlines the research content and methods of this paper.The second chapter is the literature review.This part reviews the previous literatures about overall budget management, the comprehensive budget management based on value chain and value chain management, summarizing the results of previous studies and providing the direction of this paper.The third chapter is the theoretical analysis. It analyzes the related theory about overall budget management and the value chain. It also proposes the theme of this article which is related theories of overall budget management based on value chain.The fourth chapter is the study of comprehensive budget management in Corporation A. Withthe author’s on-the-scene investigation and interview, it selects Corporation Aas the research object, then observes and studies the present situation of the implementation of comprehensive budget management in Corporation A, thus points out the outstanding problems of budget management of this corporation.The fifth chapter is the building of comprehensive budget management system based on value chain for Corporation A.The system includes comprehensive and multi-layeredcontentsof budget goals, organization, budge establishment,budget control, and performance evaluation which are based on value chain analysis.The sixth chapter is the suggestions. It raises several targeted policy recommendations for the implementation of overall budget management based on value chain in Corporation A. The seventh chapter is about the research conclusions and future outlook. This chapter summarizes the conclusions and points out the shortage of this paper. It also prospects future research direction.The main innovation of this paper is mainly manifested in three aspects: Firstly, the innovation of research perspective. This paper re-examines the budget management based on the perspective of value chain, considered the external value chain as the focus which only few scholars study, and introduce it into overall budget management effectively. Secondly, the innovation of research method. This paper uses the method of theoretical analysis together with case study, to obtain strong evidence by the channels of questionnaires, semi-structured interviews and internal data collection, provides specific case support for the study of value chain budget management so that the relate theory studies can be supported by actual research conclusions. Thirdly, the innovation of research content. This paper truly makes up the deficiencies of the traditional budget management of Corporation Aeffectively through the practical application of value chain budge management.It makes good effect for improving the present budget situation and promotes stable development of Corporation A. Meanwhile,Corporation A is a good representative, it provides reference for the improving of budget management of other companies in manufacturing industry.The deficiency of this paper is that it didn’t involve a lot of budgeting for capital expenditure. In addition, due to the limitation of knowledge on manufacturing, the author cannot fully understand the process of comprehensive budgeting that implemented in Corporation A, and the budget management system that the author built is still not so perfect or clear. Future research in this field is expected to make conclusions more accurate and practical in view of these inadequacies.