The Application Of Beyond-budgeting In C Chemical Group

With the development of the economy, changing business environment and the fiercecompetition, C chemical Group’s spontaneously shows its drawbacks in the budget, Beyondbudgeting, a new thought for budgeting, has achieved great success in abroad application.Beyond budgeting effectively integrates the advantages of budget management, Balancedscored, Benchmarking, surpassing the management mechanism which uses indexes ofbudget to evaluate the management of operations and performance. It applies rollingbudgeting in formulating the business plans and goals. When facing the evaluation andassessment of business performance, it makes use of the evaluation system of relativeperformance indicator. In this way, the budget system will become more flexible andadaptive to the market change, which makes enterprise managers get away from the trap ofannual performance evaluation. As the improvement of Beyond Budget, this thought ofmanagement is a means that C group could learn from. However, the traditional way ofbudgeting cannot be abandoned thoroughly, because it still helps in resource allocation. Therelative wise way of improving current budget system is taking advantage of themanagement thoughts of Beyond Budgeting to solve relevant systematic problems.This paper is based on traditional budgeting theory and Beyond Budgeting theory.Firstly, the author conducts deep investigation on the management situation of C group.Through analyzing the company’s budgeting system and the result of questionnaire about itsbudgeting administration, the author concludes the problems existing in its budgetingmanagement and the reasons behind.Secondly, after analyzing the situation of C group，the author applies BeyondBudgeting in his analysis to optimally design C group’s budgeting system. Innovations ofthis thesis mainly focus on rolling budgeting， performance monitoring and performanceevaluation on the base of Balanced Scored and Benchmarking. This innovation not onlysatisfies the need of business and market, but also ensures the implement of company’sstated objective. At the end of the thesis, the author discusses the supporting measures ofBeyond Budgeting and its conclusion.