The Case On The Budget Management Of "China Railway Group Limited" With The Business Model As The Budget Unit

Since China’s reform and opening up,the management philosophy,management strategy,management mechanism,management quality and management mode of Chinese enterprises have been significantly improved;However,the operating environment of enterprises is also undergoing great changes,and the production and management are faced with many challenges,which increases the operating risk.Budget management is particularly important at this time.At the same time,although most domestic enterprises have carried out budget management,however,the scientific nature of budget preparation,the urgency of budget implementation and the seriousness of evaluation have not been fully considered,all these make the implementation of budget management encountered resistance.、This paper takes the budget management of multi-business enterprises as the starting point,expounds the meaning,characteristics,objectives and contents of the budget management which takes the business form as the budget unit.Taking China Railway,a representative enterprise in the construction industry of China,as an example,this paper combs and analyzes the development,the specific work and the corresponding implementation effects of the budget management of different types of business in China Railway.By studying how China Railway Group deals with the budget management work with complex structure,huge size and different interest demands of its member units,this paper analyzes the major and difficult points faced by group enterprises in the implementation of budget management,further discusses the effective measures of large enterprise groups in the implementation of budget management,improves the research content of budget management,and learns the advantages of budget management.It tries to find and improve the problems and challenges encountered in the budget management of state-owned enterprises,and obtains the problems such as unclear positioning of responsibility at each level of the budget management of some multi-business enterprises and the lack of depth of the integration of industry and finance,and puts forward the improvement of the company’s operating environment,the construction of integrated enterprise budget management system and other relevant measures to solve the above problems.Under the background of the new era,budget management has become the key content of the internal control of state-owned enterprises,which puts forward higher requirements for the construction and application of the comprehensive budget management system.This paper aims to study how traditional large enterprises with their own industry characteristics cope with the new challenges brought by large scale,multiple levels and complex business,trying to analyze the advantages of taking business form as budget unit compared with the traditional budget management mode,further explore how state-owned enterprises carry out budget management based on business form unit,and actively explore the implementation of new paths and new measures of budget management.It tries to enrich the research perspective of budget management,make up for the defects existing in the operation of the traditional budget management system of enterprises,and help enterprises develop in high quality.