Research On The Improvement Of Comprehensive Budget Management Of Kang Hong Pharmaceutical Group Corporation

Comprehensive budget management is able to link up a corporate 's R&D,production,procurement and sales.Under the guidance of company's managerial strategies,comprehensive budget management guides its daily operations,transforming plans into actions.Besides,budget management can be served as a powerful means of reducing operational risks to pursue maximum performance even when it is applied to pharmaceutical industry which features larger initial investment in research and development,higher investment risk,longer duration,and lower degree of concentration.At present,in the context of an ever-changing market environment,the pharmaceutical industry in China has been hugely impacted by the promulgation of related policies,such as replacing the business tax with a value-added tax and "two-invoice" system over the past two years.However,challenges usually go hand in hand with opportunities.Thus,it is of utmost importance to further study on improvement of comprehensive budget management system in order to improve corporate budgets and upgrade its refined managerial standard.This thesis adopts the method of case study and takes Kang Hong Pharmaceutical Group Corporation(hereinafter referred to as "the Company")as research object.It is divided into four parts.First,the thesis will focus on research background and significance;relevant theories and literature review will also be described;second,on the basis of status of China's pharmaceutical industry,the comprehensive budget management system and its implementation process in the Company will be studied;then,advice will be given on how to improve comprehensive budget organization structure of the Company as well as how to improve the efficiency in various aspects of the budget management application in order to promise a maximum efficiency of the comprehensive budget management;finally,the safeguard measures and expected results of the Company's comprehensive budget management will be discussed.With the overall analysis of the Company's comprehensive budget management,the thesis will draw some conclusions:the adaptation of multiple budget preparation methods can improve the accuracy of the budget,building a solid foundation for budget implementation and budget assessment;the completeness of budget implementation can be better observed when strengthening the analysis on deviation from budget indicators in budget implementation;material and spiritual,long-term and short-term incentives can better motivate employees.This thesis will not only give suggestions on how to improve comprehensive budget management of the Company,but be served as a reference for other pharmaceutical manufacturing enterprises of the same type to improve their comprehensive budget management level.