Research On Enterprises' Value Chain Management Based On Circular Economy

In recent years, China is stepping into the groups of powerful nation with the economy growing rapidly. But economy development is at the cost of environment in the short term. Today, Chinese government has come to realize the severe pressure caused by pollution, and has passed the bill of Circular Economy Promotion Act, whose implementation is approaching in a legal way.Combined with the theory of value chain management, the pattern of circular economy becomes the fundamental approach to prompting the circular economy at the business level. The system of enterprise circular economic value chain management is constructed from internal and external circulation in this article, which provides not only theoretical but practical value. The basic framework and theoretical base are given in this paper, which not only enriches the value chain management, but carries the connotation for enterprise improving the external environment, enhancing the national and regional industry harmony.Firstly, the connotation of enterprise value chain is defined, the differences and connects among the value chain, supply chain, and industrial chain are made, the signification and objection of the value chain management are proposed, the double circulation model is established, the operating mechanism is analyzed, the double chain coupling model is established from the perspective of internal and external circulation, and the relations among double circulation and continuous competitive advantage are ayalyzed.Secondly, guided by internal circular model of enterprise value chain based on circular economy, the internal value chain system is constructed from the auxiliary operating system, basic operating system and additional operating system, including infrastructure invest management, cash flow management, operation chain management, TQM, JIT, and waste recycling and by-product treatment management. Thirdly, the scientific system of circular economic external value chain management designed from such aspects as layer structure, cycle structure, core body, value flow and loose layer. The management and control mechanism are further studied. Based on legal support system, policy support system, social support system, and technological support system, the support system of external value chain management is proposed.Fourthly, the general framework of the competitive advantage of the enterprise value chain management is analyzed. The expanding approaches of obtaining competitive advantages are studied. From the viewpoint of circular economy, the mechanism, origin, and pattern both competitive of cost leadership and differentiation are expounded, and the integral framework of getting competitive advantages is established.Fifthly, the index system of performance appraisal is designed from both internal and external circular performance. The performance appraisal model is established based on fuzzy, and the empirical analysis is done to evaluate the performance by taking HX Corporation as example.Finally, based on the mechanism of enterprises obtaining continuous competitive advantage by circular economy value chain management, from the viewpoint of government, region, industry and enterprise, the countermeasure system of circular economy value chain management is constructed.