Research On Optimization Of Comprehensive Budget Management Of Tobacco Company In S City

Over the past decades,under the global situation of tobacco control and banning,especially since China joined the World Framework Convention on Tobacco Control in2003,the profit margin of the Chinese tobacco industry has become less and less.Considering the fact that China is continuously opening to the international market,it is questionable whether these Chinese tobacco companies can withstand the competitive pressure from the international group.For a very long time,the monopoly business model and planned-economy management form have made these companies have great limitations in the management concepts and lack of competition awareness.The established management system is only formalism,and thus is not able to play its true performance.Therefore,in order to enhance the core competitiveness and profit margin of the Chinese tobacco companies,it is imperative to make innovations in their organization and management,make the budget management lead the companies’ development.Nowadays,with the continuous development of market economy,the pressures which the whole tobacco industry has faced keep increasing.This paper analyzes the characteristics and drawbacks of the monopoly Tobacco Company’s budget management model,proposes improved measures for the traditional budget management form,in order to promote the budget management to work effectively.This paper first gives an overview of the basic concepts of tobacco industry,and studies the existing budget management mode of Tobacco Company in S city.Taking the point of the function of the organization and the process of the management,analyzes the data,the paper concluded that the company has serious formalisms in budget management.It is lack of scientific management of budget targets,and has low accuracy of budget execution,insufficient feedback on budget analysis,imperfect budget evaluation mechanisms.Regarding the issue above,S-Tobacco Company should establish the budget target more scientifically by reforming the budget preparation form,the company also need to improve the quality of budget preparation,and strengthen the analysis and control of the budget.Besides,more effective and communicative budget information management system should be developed with the power of information technology.Meanwhile,we also need to actively play the synergy between budget management and performance management,in order to improve the overall budget management level,and promote corporate economic growth.The possible innovation of this paper lies in : Under the situation of the planned economy and monopoly franchise system,the Tobacco Company break through the traditional comprehensive budget management mode,to improve the management method.From the perspective of company’s strategic goal,the company could improve the budget system,and enhance the awareness of the budget.Through the establishment of themodern budget information management system with tobacco industry characteristics,and strengthening the synergy between budget management and performance appraisal,the company could establish a budget management system,which is suitable for the tobacco company,to promote the sustainable development of the company.This paper has not analyzed the feasibility of the proposed countermeasures,so it may not list all the problems encountered in the implementation process.