Case Study On Cost Budget Management Of HZ Company

In recent years,although the global economy has seen a rare improvement since the financial crisis,aggregate demand,trade and factor productivity are not enough to sustain future global economic growth.Growth is good in the short term,but it is relatively weak in the medium to long term due to lower growth potential.The world economy's potential growth rate before the international financial crisis was 3.4%,falling to 2.8%in 2008-2012.Global consumer demand fell to about 2 percent from 5-6 percent increase in the previous seven years,while investment demand from 7 percent increase fell to 3 percent.Potential growth is below the long-term average,as is the case in about 50 percent of emerging economies and about 90 percent of advanced economies.In such an international economic environment,China's economic development can not stand alone.The current overall situation of China's economy is gradually changing from high-speed growth to medium-speed growth.The factors of transformation include changes in demand side,changes in total population and structure,and environmental protection.China's economy has shown a trend of medium-speed growth in 2017.In the past,the three major demands of export,government infrastructure investment and real estate market investment,which supported the rapid growth of China's economy,have basically reached the bottom,but have not yet seen a rebound trend.The World Bank predicts that the global economic growth rate will be only 3.1%in 2018,0.1%higher than in 2017,but such growth rate will not allow the world economy to return to the high-speed growth stage in the short term.In such a domestic and foreign economic situation,the biggest impact is the market competition enterprises,large-scale state-owned manufacturing enterprises increased in severity.Under the current environment,due to the weak external economic growth,shrinking market demand,and the gradual external impact on the "Troika" driving China's economic development,especially the prevalence of unilateral trade doctrine in the United States and other Western countries in recent two years,the expansion of international and domestic markets is becoming increasingly difficult."Open source and throttling" are two magic weapons of enterprise development.Under the current economic environment,the pressure of open source is obvious.Throttling is the only way for enterprises to increase control.If an enterprise wants to survive and develop in the current economic predicament,it must greatly reduce expenditure and give full play to its cost advantage.And the cost budget management that we vigorously promote in enterprises is exactly the management mode that can meet the needs of enterprises,and it is an effective measure of saving money.However,since the implementation of comprehensive budget management throughout the country,it has not played its due role.Although there is a sound theoretical guidance framework,it has not been better applied to practice,especially the cost budget management as part of comprehensive budget management.In view of the gradual deterioration of the objective environment,in order to enable enterprises to effectively apply the fine management model of cost budget management to help themselves out of the predicament,this paper combs the concepts of comprehensive budget management and cost budget management,studies the content,characteristics and process of cost budget management,and sums up the cost budget management combined with the specific case of HZ Company.The general method is to combine practice with theory.HZ Company is a large-scale state-owned manufacturing enterprise,mainly engaged in"military photoelectric,automotive lamps,civilian photoelectric" production and management of three major industries,belonging to the world's top 500 BZ Group,it is representative on many issues.This article takes HZ company as the case analysis object,according to the thought train of "the concept summary,the present situation analysis,discover the problem,solve the problem".The successful experience of HZ in adopting the cost budget management model based on the "PDCA" cycle is analyzed and summarized.At the same time,it is pointed out that there is a lack of strategic management thought in HZ Company.Questions about the imperfection of incentive system and supervision institutions.The paper also puts forward the countermeasures from the two aspects of the fixed system of the group company and the operation of the subordinate enterprises.This paper is divided into six parts:The first part,the introduction,this paper from the selected topic background and thesignificance two aspects explains the research significance,introduces the research content and research methods,and points out the innovation and shortcomings of this paper.In the second part,the related theory of cost budget management is introduced.Firstly,the theory of total budget management is briefly summarized,and then the content,characteristics and process of cost budget management are expounded.In the third part,taking HZ Company as an example,after introducing the basic situation of HZ Company,this paper expounds the concrete implementation of HZ Company's cost budget management,and analyzes and summarizes its achievements.The fourth part,taking HZ Company as an example,points out the problems existing in the implementation of cost budget management in HZ Company from the system level of group company and the operating level of subordinate enterprises.The fifth part,aiming at the problems raised in the fourth part,puts forward the corresponding solutions from the group level and the subordinate enterprise level.The sixth part,carry on the summary and the prospect.The purpose of this paper is to provide reference for the further improvement of the cost budget management of enterprises in our country,and to contribute a little to the sustainable and healthy development of enterprises in the competition.