Analysis Of Working Capital Management Issues, Medical And Retail Enterprises From Nus Pharmacy

Working capital management is involved in the whole process of company's operation. When capital becomes more important in current economic environment, the efficient working capital management plays very important role in determining whether the company is able to grow with health, effectiveness and stabilization. In China, the retail business of medicine entered in market was quite later and all the time protected by government policies. Following the development of those government policies' releasing and the severe market competition, the efficiency of the working capital management somehow determines if the company is able to improve profitability and expand the business.Therefore there is a need for research and practice on this issue. Shanghai Guoda Chain Drugstore CO.LTD has been chosen as case for study in this thesis. The thesis points out the existing issues related to the working capital management in this company by analyzing the current situation of working capital usage. In order to solve those issues, the thesis proposes solution by adding working capital into budget scope. Therefore, setting up effective working capital budget process is the key to solve the current existing issues in working capital management. KPI measurement system has been used to improve working capital budget process in this case. With the effective working capital budget process and efficient KPI measurement system, the company is able to improve the performance of working capital management.