The Case Study On The Total Budget Management Of Weichai Power Co.Ltd.

Under the circumstance of increasingly serious market economy development,if enterprises want to flexibly respond to the internal and external changing environment to maintain a competitive advantage in the market,they must look ahead at what might happen,predicting the impact of the internal and external environment on the development of enterprises,then use effective budget management tools to co-ordinate the resources of people,money and things on the basis of the overall strategy,they also should promote the landing of strategic objectives and enhance the management level by designing a scientific and reasonable plan of action.Total budget management has achieved remarkable development in recent years.This effective management tool has gradually become an indispensable part of the internal management of enterprises and has played an important guidance role in the management whose scientific and effectiveness has been recognized by the public.In the process of implementation,although there are more or less some flaws or loopholes,Total budget management has many successful management experience worth learning,so enterprises should learn from the growth process to make up for defects and optimize the management system,which is of great significance to the long-term stable operation of the enterprise.This paper takes a large state-owned manufacturing enterprise Weichai Power Co.Ltd.for example,introducing the specific situation of its total budget management system.First of all,taking the theory of advanced budget management at home and abroad as the theoretical basis,the paper elaborates the meaning,characteristics,functions of the total budget management.Then,from the three stages of Weichai's total budget management compilation,execution and control,and evaluation,we carry out an in-depth analysis on the organizational system,the specific content,implementation process and technical means involved.We explore the unique successful total budget management experience in Weichai Power and look for the hidden defects in the total budget management practice.Afterwards,reveal the function of the total budget management of Weichai Power.Finally,we provide measures that can guarantee the effectiveness of the company's comprehensive budget management system.The total budget management in the process of implementation of Weichai Power,it is unique in implementation process,organizational system and technical means involved,can provide total budget management experiences for Shandong Heavy Industry Group,state-owned enterprises of Shandong Province and other large enterprise groups,in order to promote the smooth implementation of enterprise strategy and improve the management level.At the same time,we put forward some suggestions for the lack of total budget management system of Weichai Power in order to further optimize and perfect its system.