A Study Of The Chinese Colleges’ Financial Core Competence

When the time of graduation, limited condition that students graduate from “985” or“211” colleges make many students out of the door. No matter the rank of Chinese collegesin internet or the rank of2011best Asian colleges published by the UK higher educationresearch firm, and even the rank of colleges around the world in Thames newspaper, allindicate that the world-wild competition among colleges is very fierce. But at present, ourcountry colleges generally lack of its own characteristics and the phenomenon ofhomogenization is serious. Many colleges are operating in debt, and don’t have the cleartarget of financial management. In addition, the resources are used unreasonable and theperformance evaluation is not perfect. These historical problems make the development ofcolleges face a bottleneck period. Therefore colleges in China should seize the opportunityand recognize the situation to develop its own financial core competence.Firstly, this paper introduces the related theoretical basis, including core competencetheory, non-profit theory, competitive strategy theory and resource allocation theory. Afterdetailed definition of the colleges’ connotation and distinguished the concepts betweencapability and competence, core capability and core competence, financial core capabilityand financial core competence. Secondly, from the start of core competence and take thefinancial management target as bridge to research the college financial core competence.The research contains connotation, characteristics and elements. Thirdly, on the basis of thetheory to design a set of feasible evaluation system, and chooses the FAHP as evaluationmethod. Fourthly, taking J college as sample, to evaluate the level of J college’s financialcore competence, analysis the problems and solve the problems.This paper puts forward financial core competence in colleges to improve owncapability. The optimal target of financial management is to have more of financial corecompetence. And in accordance with financial activity competence, financial managementcompetence and financial performance competence, I establish the evaluation system. It isdifferent, because it take elements of public relations about alumni, conservation-orientedcolleges, the quality of CFO and learning colleges into it. It emphasizes the sustainabledevelopment on finance and pays more attention to reveal the future developing potential inthe competition environment.