Study Of Internal Control Of Sales Circle In Mobile Device Of MT Co., Ltd

The new-economic form has been profoundly changing during 21 century, as a result, the company's operation environment, business process and management model are all experiencing the corresponding change, which has required new standards to the internal control for the enterprise.September 1992, the COSO committee published the famous report "COSO internal control-integrated framework" (IC),which extremely influenced the developed countries and regions in the world, especially the European and American countries. Most companies have established to some extend mature internal risk control system and constructed internal risk prevention control mechanism. To ensure and promote enterprise's long-term stability and development, internal control and risk management have became a main trend in current international enterprise management.With the globalization of China's economy, the key stakeholders, who witnessed and experienced many cases of enterprise collapse as a result of the internal control failure domestically and overseas, are increasingly aware of the importance of the enterprise's internal control, especially the importance of the risk management. In 2006, China's state-owned assets supervision and administration commission issued the "The guidelines of the risk management for central enterprise ",which put forward definite requirement about how to develop comprehensive risk management for the central enterprise.The ministry of finance, securities, the auditing, the CBRC and CIRC,Who formed into five departments, jointly issued "Enterprise internal control fundamental norms"(issuing date is June 2008), meaning the enterprise internal control standard system construction has achieved a significant breaking-through, which emphasize the internal control is designed by the enterprise board of directors,supervisors,managers and staff implementation, Aiming at the process control of target realization, to set up the concept of all-round,all staff and overall process。"Enterprise internal control fundamental norms" can be even considered as Chinese "Sarbanes Oxley Act", which profoundly and importantly influenced Chinese enterprises.Since 2003, MT cellphone's market share was overtaken by another cell phone maker, such as Nokia and Samsung. Operating profit has been declining from 2007 while turned better until 2010.It was one of the important reasons that the oversight of internal control and risk managemen, resulting in the business operation inefficiency. To be an important strategic region, China is playing a role as a bridge to connecting MT global headquarters closely, the present situation of sales process internal control in China, which will directly affect the business efficiency and effectiveness in China, Thus influence the global development strategy for MT Company.The paper based on my rich experience in Motorola and the theories of the internal control (I learned in Southwest University of Finance and Economics), combining COSO five factors and comprehensive Risk Management, Evaluation the overall situation of internal control for MT company,Based on PRC national sales cycle and take the internal control as the research object, focusing on credit control and accounts receivable, channel strategy and price system management, retail management and the three important sales risk fields to analyze the details to find the each side of main problems, and the main reasons for the internal control system,designing practice basis laid.It draws a very important conclusion as follows:(1) As to the credit control part, a flexible credit control system on the basis of the combination of the finance and the sales should replace the former credit control system in the direction of the finance (that the former financial led credit control system should be changed). (2) As to the channel part, the strengthened cooperation with operators, national home appliance company and on-line business company must be made. Meanwhile, the cross selling and price system management must be better dealt with. (3) In the retail aspect to changes the target seting and KPI index to evaluate the sales performance, looking for growth in sales and strengthen the management in staff stability. The improvement of three aspects can help the managers of MT to promote business growth in the sales cycle and achieve their strategic objectives.Based on the internal control theory, applying problem detecting, problem analyzing, reforming and suggesting, and this paper simply researches the current situation of the core sale process of MT Company, intending to achieve some possible contribution to the sale business of the similar companies.