The Study On Management Of Cash Flow For Construction Enterprises Based On Value Chain

Since 1985 the American scholar Michael Porter proposed the theory of value chain, its management thoughts develops and deepening unceasingly along with the development of society, economy and technology. The theory of value chain brings an effective management method and analysis tool for the enterprise to construct its core competitive advantages.As we all know, if an enterprise has no profit, it can also run well. But if no cash, it will be plunged into bankruptcy. To an enterprise, the function of cash flow is equivalent to the blood of the human body, and the circulation of cash is basic precondition of corporation's survival and key chain. Under the circumstance of market economy, the enterprise would exist and develop continuously if it has necessary cash. So the inevitable choosing of the enterprise is that strengthening cash flow management, improving financial liquidity and raising economic returns.As our country market economy become perfect continuously, the construction business enterprise being the market economy corpus to participate in the competition, the cost management has become more important. However, many construction companies have neglected the importance of cash flow management. The examples that cash crisis caused by bad management leads an enterprise into collapse immediately are out of count. The thoughts of value chain give a development platform and opportunity for each direction of enterprise management. As the core theory of modern finance, management of cash flow is also influenced by the thoughts of value chain. The value chain builds a good management and technical foundation for the management of cash flow. So this article takes the strategic relations of the two as the foundation, and tries to extend the content and technology of the traditional management of cash flow.Firstly, this paper describes the relevant theory, reviewed the relevant domestic and international the value chain theory and the theory of state cash management. Secondly, proposed the management of cash flow based on value chain. Thirdly, analysis the characteristics of construction enterprises and the status of cash flow management, and then, to build the frame of management of cash flow for construction enterprises based on value chain. Lastly, use the AHP to evaluation the management of cash flow for construction enterprises based on value chain as an example, and introduced the methods and implementation steps of the management of cash flow for construction enterprises based on value chain. The study of this thesis aims to find a new way to improve the management of cash flow for construction enterprises.