Designing The Centralizing Cash Managemant Pattern For The Fangzhou Group

This paper mainly concerns about how to choose the proper cash management pattern in the grouping process of enterprises in our country, focuses on the designing of the centralizing cash management pattern of the Fangzhou group. The basic conclusion is: for the benefit of expanding the financial function of the group, executing the finance strategy management, Fangzhou must fulfill the centralizing management of its cash. It can begin with converging its accounts, settlements and financing decisions, and make use of the ERP platform to achieve the fusion of the cash management and the operation management gradually, and implement the integrating management of the cash flow, operation circulation, materials circulation and information flow. The paper also confirms that the group cash management should carry out at the highest level of the organization structure in order to accord with the group developing strategy. In the country, the enterprise group is generally organized surrounding one core corporation. So it is very important to establish the healthy organization structure for the sake of strategizing the cash management.The paper consists of two chapters, chapter 1 mainly discusses the theory and practice of the group cash management, chapter 2 analyzes in details the development history, present situation and strategy gist of the Fangzhou group, and at the base of it, chapter 2 moves forward to propose the scheme and organization structure of which Fangzhou can take advantage to establish its future cash management pattern.Chapter 1 is made up of four parts. The first part introduces the development history of our enterprises grouping, points out that there are sorts of problems in the function construction of the enterprise group and the relationship between the parent company and its subsidiaries. The second part argues about the core content and strategy function of the group cash management from different facets such as the construction patterns of our enterprise groups, finance characters and finance strategies, emphasizing the concept of the group 'general finance'. The third part analyzes the intrinsic requirements of the robust finance capability for the group's rapid development, concludes that we have to enhance the group finance function, specializes the management of the group's finance resources and operations. The third part also presents four traditional patterns of the group cash management. The last part involves in four cases treating from variant angles of how to combine the group cash management theory with thepractice. The four cases discuss respectively about centralizing the cash management, emphasizing the cash flow, enhancing the cash budget and building the inner finance service of the group.Chapter 2 comprises four parts. The first part introduces the background and development of the cash management of the Fangzhou group, discusses the targets and principles of the cash management based on the supply-and-demand-chain management, suggests the imminence of enhancing the group cash management. The second part mainly analyzes operation characters, finance strategy gist and the present situation of the cash management in the different developing phrases of the Fangzhou group members, and educes the general task of the centralizing cash management at present. The third part is the highlight of the chapter. In this part, as for the future cash management system of the Fangzhou group, we come up with the scheme with centralizing pattern, integrating pattern and organization construction. The last part concludes that the construction of the centralizing cash management pattern is a process that needs incessant innovation. We have to expand the financial function of the group strategically to gain our ends.