Construction And Application-Based Cigarette Manufacturer BSC Performance Evaluation System

As the Chinese economy has entered a "new normal", all walks of life companies are facing with an enormous pressure of market competition. If a company wants to succeed and break through in the new market situation and performance better than their all competitors, it is necessary and essential for a company to improve their own enterprise management level, and optimize the performance evaluation methods and results.The tobacco industry is a state monopoly industry, and the tobacco industry plays an important role in the national economic contribution and financial revenue. Under the new economic situation, all cross regional merger and reorganization of the tobacco manufacturing enterprises make the cigarette manufacturing enterprises gradually move towards to the road of modern enterprises. These mergers and reorganizations have put forward a lot of new challenges for the domestic tobacco manufacturing enterprises. China’s tobacco industry belongs to the national policy of monopoly industries, the tobacco products are in the implementation of monopoly system, and tobacco companies around the unified vertical are under the leadership of the China National Tobacco Corp. With China’s accession to the WTO, gradually relax restrictions on cigarette importion, domestic tobacco companies are faced with a huge challenge. At present, the domestic cigarette manufacturing enterprises under the unified leadership of the State Tobacco Monopoly Bureau, through mergers and acquisitions and other ways to achieve the advantages of the brand bigger and stronger, forming a cross province of large tobacco manufacturing enterprise groups. Such industry background environment put forward higher requirements to the performance evaluation system of cigarette manufacturing enterprises. Tobacco enterprises for local and national economic and financial contribution are very huge. So, through the scientific method to establish a set of use in cigarette manufacturing enterprise performance evaluation system is very necessary, also can conform to the development trend and reform of the tobacco industry, promote enterprise modernization of growth. The monopoly characteristics of tobacco enterprises makes these enterprises in the performance of the functions of normal enterprises, but also with a strong administrative color. Therefore, how to establish a set of enterprise performance evaluation system which is in line with the characteristics of the tobacco industry, the market rules and the objective development trend of enterprise performance evaluation system plays an important role in improving the overall management level of enterprises.The performance evaluation system of China’s cigarette manufacturing enterprises still has a significant difference compared with the foreign counterparts and the advanced industry in China. The vast majority of the existing performance evaluation system of cigarette manufacturing enterprises are based on the evaluation system in which financial indicators are the core indicators. Under the influence of today’s rapidly changing external market environment, this evaluation system has emerged the obvious defects:lack of the analysis of the external environment, combined with the inability to the strategic goal of the enterprise to the enterprise long-term development prospects to make an evaluation, too much emphasis on financial indicators while ignoring the aspect of non-financial indicators of enterprise evaluation. Therefore, the current system has been unable to fully evaluate the performance of the state of the business, and the system is even powerless for forecasting the future of the enterprise.According to the strategic target of cigarette manufacturing enterprises, the performance evaluation system designed by the balanced scorecard can help enterprises to avoid short-term behavior. Through the combination of financial indicators and non-financial indicators, the system could carry out an effective evaluation with more complete comprehensive competitiveness of enterprises and the future development of the ability. In the selection of indicators, combined with the actual situation of cigarette manufacturing enterprises, the set of indicators have the characteristics of the industry, and can effectively make the evaluation of the performance of cigarette manufacturing enterprises. Therefore, based on the above reasons, this article uses the balanced scorecard framework, and makes the appropriate supplementits for its internal framework and related point of view, in order to better adapt to the characteristics of cigarette manufacturing enterprises. Cigarette manufacturing enterprises is a large state-owned monopoly enterprises, almost wholly to the various tax and financial contributions to the top. So on the basis of Kaplan and Norton of four angle index, the article adds social responsibility and contribution perspective that can reflect the tobacco people’s "national interest first" core value concept, and from five angles of the financial perspective, customer perspective, internal process perspective, learning and growth perspective and social responsibility and contribution perspective. We can use these five angles to make the construction of the performance index of the enterprise performance in a multi directional and balanced way. Through abundant and perfect balance scorecard system, to join the social responsibility and contribution to the evaluation of angle through four related index were evaluated, so that it can be more in line with the actual situation of the tobacco manufacturing enterprise, the enterprise performance evaluation more reasonable. And, using Delphy Method and Analytic Hierarchy Process (AHP) to calculate the weight of each point of view to design a new set of performance evaluation index system for tobacco manufacturing enterprises. The complete evaluation index system can reflect the operating results and development status of the enterprises from various aspects, and has strong adaptability to the cigarette manufacturing enterprises.Finally, through the practical application of AB cigarette factory, and analysis of the shortcomings of the existing performance evaluation system, we can find out the specific evaluation of defects and the new design of the evaluation index based on the Balanced Scorecard applied to AB cigarette factory. Therefore, we can analyze and explain the result, and also put forward the improvement suggestions according to the evaluation of the indexes.