The Case Study Of F Company's Working Capital Management

With the development of economy,the enterprise competition is becoming more and more intense.As the core of daily operation,how to improve the efficiency of working capital management has became a difficult problem to the management.As the the business contact between the various links in operation have not been considered in traditional working capital management evaluation system,it's drawbacks gradually becomes apparent in the evolving economic environment.And until 2007,Professor Wang Zhuquan put forward a new evaluation system which according to channel classification,so that the money management activities are divided into four is channels-procurement,production,marketing and financial management,and this make a combination between management and enterprise business.However,this new management evaluation system has not been widely used in China,and the combination of it and actual business is still need to be studied.Both of “The Belt and Road Initiatives” strategy and “The 13 th Five-Year Plan” provide an opportunity for the development of non-metallic mineral products industry.At the mean time,under the condition of China's New Normal,the requirements of the type and quality of non-metallic mineral products are rising.As a sub-sector of non-metallic mineral products industry,daily-use ceramics is necessary to peoples' daily life,and this industry face a adverse situation that company in it is large but not strong.With the opportunities and pressures in the national policy,many companies have the risk of collapse.And after summarizing the existing literatures,this paper found that the research on working capital management at home and abroad is limited to large group enterprises or the whole industry,while with little attention to small and medium-sized enterprises.Therefore,this paper put the ceramics industry as the breakthrough point,chooses F company as the research object,which started as ODM,and then gradually developed their own brand,became a typical representative of the art of porcelain,and ultimately occupied a place in the high-grade daily-use ceramics market around the world.After a brief introduction of the background,purpose and significance of this topic,this paper firstly introduces the F Company,and uses the financial index analysis method to analyze the present working capital management of F Company.Secondly,this paper mainly use the comparative analysis method to analyze the working capital strategy and the efficiency of working capital management activities based on channels of F Company from 2011 to 2015,and analyze the problems of F Company's working capital management activities: the source and the distribution structure of funds is unreasonable,the low utilization of bank credit and commercial credit,the production channel and financing channel has took up too much money,etc.At the same time,the enterprise management does not have a good awareness of the new working capital management,which causes the channel working capital distribution unstable.Based on the channel management theory,this paper designs a framework of working capital management,including procurement,production,marketing and financing channels,and puts forward specific solution.At the end of the paper,this paper put forward the enlightenment to the development of non-metallic mineral products industry based on the analysis of F Company's working capital management activities: establishing new management idea,establishing advanced information system,strengthening inventory management and rationally distributing the sources of funds.At the same time,I hope that it can provide lessons to Chinese SEMs' development.