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Strengthen The Inner Mongolia Electric Power Company Financial Management Strategies

Posted on:2003-10-24Degree:MasterType:Thesis
Country:ChinaCandidate:X Y ZhangFull Text:PDF
GTID:2206360092480504Subject:Business Administration
Abstract/Summary:PDF Full Text Request
Financial management is a major function of management in an enterprise. Almost any activity in an enterprise will related to using money, also will involve using the function of financial management directly or indirectly. If an enterprise uses well the function of finance, it will get strong existing ability and self-developing ability. Otherwise the corporation will fall into a difficult position of using money, even will go bankrupt.Being an independent enterprise is a major premise to using function of financial management. Inner Mongolia Power Company (IMPC) had been a limited company since 1998.But being influenced by planning economy for many years, there are still many defects in financial management. For example, financial system is still the model of concentrating money into company' s headquarters, the headquarters is profit center, and the subordinated company is cost center. The function of financial management is not divided from function of accounting. Finance is still a part of accounting. The methods of financial management is not widely used, IMPC only tried budget, but not deeply use calculation to forecast or to control finance. The funds management is static.Financial management is the basic work and bottleneck in IMPC, so strengthening financial management is especially important.First, financial management must be involved into strategic management because the decision about long term investment and assets annexation are made by board of directors, the effects of these decisions will cover broad and exist in long time.Second, the system of financial management must make a distinction between the company & it's subsidiaries and the general company & it's branches. System of the company & it's subsidiaries stresses on owner's right, but system of the general company & it' s branches emphasizes operating performance control system.Third, IMPC should strengthen using functions of financial management, including emphasis on capital decision, channel of long-term funds raising, flexibility of short-term funds raising, building the investment appraising system and dynamic cash flow system.To methods of financial management, IMPC should use quantity prediction, should build system of overall budget, especially budget analysis and feedback system, should establish financial management control system.Then IMPC should change its financial organization structure. The financial management division and the accounting division are different . Financial management branch should be independent.
Keywords/Search Tags:Financial management, Financial strategic management, Financial management system, Function of financial management, Methods of financial management, Financial organization structure
PDF Full Text Request
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