Research On Financial Management Optimization Of CRRC Qingdao Sifang Co., Ltd

The market economic system has led to.a great revolution in the situation of the business world,and a lot of small businesses,which used to be equally competitive,have disappeared in different ways as a result of the "Law of the jungle".Enterprise groups,established through merger,investment or restructure,have obviously become the mainstream pattern of the present business world.They have improved their competitiveness by enlarging their scales,while series of new puzzles have come up for the management of the operation of these groups.For example,although they have got the capacity of surviving,how could they improve their self-development and rebirth capacity,achieve their strategic goals to cope with the escalation of market competition?This is a difficult problem every enterprise group is facing at present.It is the direction for the reform and development of China's groups,especially state owned groups to turn into enterprise groups with clear property rights and responsibilities,as well as sound management institutions in accordance with the requirements of modern enterprise systems.The organic combination of human resources,properties,management,mechanism and philosophy is essential for enterprise groups to grow larger,more powerful and flexible.Of these elements management is of utter importance,because it is strong support for enterprise groups to achieve sustainable development,boost competitiveness and reduce operation risks.Financial management is the organic composition in the management system of an enterprise group,and is the core element as well.After the enterprise management department has made up strategic decisions and directions,the effective application of which depends on the monitoring,managing and controlling of the financial management system.Therefore,the indicators and performance evaluations of the financial management system could reflect to a certain degree the effect and efficiency of the management of the group.To sum up,the nuclear function of the financial management in an enterprise group has been recognized by numerous enterprisers.However,China's market economic system was set up much later and is still being influenced by the highly centralized planned economy.As a result,enterprise groups,especially state owned groups which are piled up by addition following administrative orders and through reluctant combination,obviously could not fulfill the requirements of the modern market economic system,as it is difficult to establish effective management department with the impact from the past experience of each standing alone,making and following their own policies.Furthermore,the partial belief that production is more important than management makes it impossible to establish a sound and systematic financial management system,therefore,without proper financial management,sustainable development and resistance to risks are inevitably weakened.The author took an old state owned enterprise group---CRRC Qingdao Sifang Co.,Ltd as an example.He described and evaluated the group,s present financial management system,analyzed its problems and put forward optimizing suggestions on how to improve the system,and began project application.The intention of the author was to use CRRC Qingdao Sifang Co.,Ltd as case work to research on how China's enterprise groups should take into consideration of the requirements of modern corporations as well as their own situations to develop a set of financial management system that could adapt to the market economic system and satisfy the enterprise group's administration demands,on having achieved scale effect,how could their competitiveness be boosted and outside risks be resisted so that it could become larger,more powerful and flexible and eventually a successful"Century-old shop".