Household Electrical Appliance Enterprises Working Capital Management Pattern Studies Based On Channel Management

At present, China is not only the world’s large consuming country, but also the world’s largest producer of household appliances. However, most household electrical appliance enterprises have the problem of funds shortage, which has seriously hampered their development. Working capital flows in the entire production and business activities of the corporation and is closely related to business process. Therefore, it’s time for theorists to pay attention to build a new working capital management pattern based on channel management, which is helpful for the enterprises to solve problems.Firstly, the research reviewed a large number of domestic and foreign literature about working capital management. Then it makes use of industry data to analyze the present working capital management status and points out that there are five common problems of the household electrical appliance enterprises. And then it build up a new working capital management pattern based on channel management from business activities and financial activities two parts,which is an indivisible whole. Finally, the research presents Qingdao Haier and Gree’s working capital management practices based on channel management with multi-case analysis method. It makes use of financial data to compare their management performance from Entire channel, procurement channels, production channels and marketing channels. All in all, the research is very helpful for household electrical appliance enterprises to select and implement appropriate working capital management pattern.The new working capital management pattern is a complete system to some extent, it includes the design principles and mechanism of action and it consists of business activities and financial activities two parts, which is an indivisible whole.The management pattern of business activities consists of procurement channels, production channels and marketing channels, and there are four measures in each channel. The management pattern of financial activities is mainly cooperate with the business activities. On the one hand, it will improve operational efficiency and accelerate operating capital through the implementation of business activities’ working capital management pattern. On the other hand, it will increase working capital of finance activities through the implementation of working capital management pattern and then provide financial support For the upstream and downstream businesses and consumers.