Study On Business Management Of Small And Medium Scale Forage-processing Enterprises In Heilongjiang Province

The forage industry of China has reformed and developed for more than 30 years and had remarkable achievements as the pillar industries in rural areas. Heilongjiang province is a province of animal husbandry and an important base of commercial food. It's rich in feed resources. In the case that China greatly develops SMEs, small and medium scale forage-processing enterprises become the principal force. However, due to the restriction against the factors such as their small scales, lack of capital and talents, weak competitive ability etc, they are facing serious living challenges in the process of development. The key to solving those problems is to improve business management of those enterprises. But the majority of small and medium scale forage-processing enterprises is unilaterally chasing after improving the short term economic efficiency, and ignores the functions that business manager can have great impact on improvement of long term efficiency. The administration sections and management functions do not really exert the role of enterprises management, and do not indicate the future in the critical period of growth of the firm.This paper is illustrated by the method of combining between empirical research and literature research. It sets about studying the problems in management of Heilongjiang SMEs forage industry, and elaborates the details of the popular problems at present, for example, management is in low-level; employees'quality is low; cost accounting is not inaccuracy; working capital management is out of control; there is lack of capital and scientific awareness of investment and financial management and low financing ability; ability of avoiding financial risk is weak; product structure is unreasonable; marketing concept lacks precision; asset management is in confusion etc. By analyzing the main reasons, the author found that reasons are from both external environmental factors and internal management factors. There are many internal management factors, including the poor implementation capacity in financial system, lack of attention on the management of cash flow, slow delivery of internal logistics information, lack of effective financial analysis, weak information-based, lack of construction of cohesive corporate culture, extensive management, no core competitive ability etc. The author countered these problems and put forward some solutions and strategies to creating a good external environment for the operation and management, setting up scientific management concepts, improving quality of workers, establishing and improving the internal control system, strictly controlling cost, adopting group procurement, enhancing the investment management and information construction, taking the road of differentiation, having the optimization of the product structure, Strengthening scientific and technological innovation, setting the Safety Alarm System, and raising the ability of dealing with a contingency or emergency in the market etc.The development of forage industry can promote not only the development of crop cultivation, husbandry and the agricultural industrialization, but also the development of chemistry, pharmaceutics, machinery manufacture, light industry, commerce and many other relevant industries. It can be effective in promoting sustained, rapid and healthy development in national economy. This paper is to inspire the managers and operators of SMEs forage industry in Heilongjiang province to make effort to improve economical management according to the actual condition.They must seize the opportunity that the old industrial bases are reviving in the northeast. control the pulse of enterprise management; thereby make the SMEs forage industry development healthy and continuous, and further driving the development of the relative industries in our province.