Working Capital Management Pattern Studies Based On Multidivisional Structure Of Enterprise Group

Working capital management is an important content of enterprisefinancial management. Since the20th century the development ofinformation industry led to great changes of global economy environment.The importance of working capital management is increasing. How to solvefinancing problems such as capital decentralize, poor supervision and lowutilization level of capital are urgent demand for most of the enterprisegroup.At present there are three big mainstream enterprise grouporganization structures which are utility structure, holding structureand multidivisional structure. This paper studied the working capitalmanagement model of enterprise group with multidivisional structure.Through the analysis of working capital management characteristics andthe status in enterprise group with multidivisional structure, the paperbuilds the working capital management pattern which is suitable forenterprise group with multidivisional structure.First, the author puts forward working capital management concept ofenterprise group with multidivisional structure. The group’s overallinterest is always in the first place. The primary task of business processimprovement is to promote the logistics, cash flow, information flowintegration. The group headquarters and business divisions should dealwith centralization and decentralization. Keep the flexible capitalmanagement concept and make corresponding adjustment according to thechanges of the environment.Then depending on the view of working capital management, the patternis divided into two parts. One is to construct the overall level of workingcapital management model. The other is to construct the activity levelof working capital management model. In building the overall level ofworking capital management model, the author puts forward the key pointsto construct the pattern such as the comprehensive budget management,establishing a unified capital settlement platform, building workingcapital evaluation system based on channels and factors and so on. Theauthor also suggests making full use of the enterprise ERP system to helpmanagers monitor the capital and improve enterprise working capitalmanagement performance. In building the activity level of working capitalmanagement model, the author puts forward the activity management concept such as resource sharing, supply chain financing, investment managementcommittee system and so on. The improvement of business process will helpthe enterprise improve capital liquidity, reduce fracture risk and raisethe group’s overall working capital management efficiency.Finally, through case analysis of JINGWEI TEXTILE MACHINERY CO.,LTDthe paper proves the effectiveness of working capital management modelin enterprise group with multidivisional structure.Through putting the working capital management, supply chainmanagement and business process management together, this paper expandsthe category of working capital management theory. At the same time,building the working capital management pattern will be the good referencefor enterprise group with multidivisional structure. It develops andimproves the theory of working capital management. The innovative modesof working capital management have certain practical significance.