Research On Comprehensive Budget Management Optimization Of P Flavor & Fragrance Company

In recent years,with the great changes of economic situation and market environment at home and abroad,the competitive pressure faced by domestic manufacturing enterprises is increasing year by year.It is very important to have a comprehensive budget management system,which is a system that must be established quickly for most enterprises in China.This kind of management uses various resources of the enterprise effectively,such as human resources,cash resources,information resources.Through using the management,the enterprise resources can obtain the most fully apply.At the same time the enterprise can also improve internal management.it is benefit for the operation of the enterprise and efficiency.P Flavor and Fragrance Company is a leading manufacturer of flavor and food additives in China.Its products include food flavors,daily chemical flavors and fragrance and food additives.Although the P Flavor and Fragrance company has gradually grown into one of the leading enterprises in the domestic flavor and fragrance industry,nowadays,with the entry of foreign multinational companies into the domestic market,industry competition intensifies,products and industrial structure further optimized,companies need to detect risks and implement action plans in the overall complex business environment and implement cost control so as to enable the company to own competitiveness of the industry.P Flavor and Fragrance Company has gradually explored the implementation of comprehensive budget management and initially established a comprehensive budget management system,but there are still many problems in its implementation.This article chooses the representative P Flavor and Fragrance Company as the research object.Using the theories of strategic management and balanced scorecard,the current situation of budget management of P Flavor and Fragrance Company has been analyzed on the basis of studying and combing the theories and documents of international and domestic comprehensive budget management.I interview the senior managers of P Flavor and fragrance company,revealing some problems,such as the disconnection between the budget target and the company’s strategy,the inapplicability of the budgeting method,the formality of the budget implementation and control,and the imperfection of the budget evaluation and incentive.In view of the problems,this paper analyzes the causes of these problems.Then,I use SWOT analysis to determine the company’s strategic objectives,introduce the balanced scorecard to decompose the budgetary objectives,optimize the compilation methods,strengthen executive control,propose optimization measures for evaluation and incentives,and put forward the optimization suggestions of P Flavors and Fragrances Company’s comprehensive budget management system.In order to ensure the smooth implementation of the optimization plan,P Flavors and Fragrances Company also needs to improve the budget organization,promote the construction of informatization,and create an environment for full participation.This article hopes to lay a foundation for the company’s smooth implementation of comprehensive budget management by formulating its optimization,and also provide a reference for similar companies to implement comprehensive budget management.