Research On Budget Control In The Implementation Of Xiangjiang Paper's Relocation And Upgrade Strategy

With the gradually development of our nation's market economy,the change of external environment corporations facing is becoming more and more fierce,which shows the importance of internal management capability.In the process corporations execute its strategy,budget control is widely known as one of the main stream management tools,whether the corporation can build a scientific budget control system to embed the strategy goals into the whole process of operational activities and each level of it,as well as evaluate the outcome of operation,is the key to the success of the corporation's strategy execution.This paper based on strategy management and budget management theory and set Xiangjiang Paper as an example.By studying the budget control system which belongs to the Xianjiang Paper's strategic decision of relocation and update,reveal the following problems existing in its budget control process:budget making is not fully consistent with corporate strategy,due to no breakdown of strategic objectives to basic level;budget control can not manage all aspects of strategy implementation due to the absence of non-financial indicators;budget management is short of flexibility to get along with huge internal and external environment changes;budget evaluation system is restricted in finance so is not able to evaluate the strategy execution in the overall perspective and it hinders the execution.By studying on the budget control of Xiangjiang Paper's relocation and upgrade strategy as well as the problems existing in it,the article did research on the improvement of the way which budget control serves the strategy execution,and finally get the conclusion that strategic budget is the answer.The article then based on the principles of strategic budget,by using the problematic ways Xiangjiang Paper's budget control adopted as reference,explain the basic methods for budget control to serve the strategy execution,hoping to offer some inspiration and help for other companies which adopt budget control as the tool to execute strategy.