A Case Study On Capital Management In F Co.,Ltd

Capital management is one of the cores in financial management as to enterprises. Capital to enterprises is as blood to life. Only on the condition of healthy and orderly circulation, can the enterprises function normally. In the midst of economic integration and globalization, any enterprise, which intends to live through the increasingly complicated competitions, will never allow capital management to impede its development. Prominent capital management is the surest guarantee to the successful enforcement of business strategy. In this sense, the discussion of capital management in enterprises is of great significance.Based on the objective analysis of the diversified challenges facing business management in current enterprises, this paper intends to explore the constructive capital management theories, with a focus on capital raising and operation. Our special attention is given to the working capital in consideration of the difficulty in regular capital management and its great capability to instant liquidation. The discussion on working capital management is developed from its characteristics, influencing factors, management principles to management strategies.A case study is proposed in this paper on the foundation of theoretical exploration. F company, a state-owned telecom equipment manufacturing company, is involved here as the case study in this research. Although F company is only a small-sized state-owned enterprise, the difficulties it experiences is representative for many other companies. F company successfully confronts these difficulties and succeeds in accounts receivable management and inventory control, which may be the most difficult obstruction in capital management. The success of F company is insightful for other companies facing similar problems. Further research on F company is recommended, for the belief that capital management is a continual process to optimization and advancement accompanying the improving development of enterprises themselves. F company is still in the progress of updating its capital management network and determines to enforce ERP project with the intention to optimize resources in and outside of the company and, hence, to improve the general management efficacy, in which the capital management is sure to be included.