A Case Study Of The Retail Business Working Capital Management Of The O2O Model

Working capital is the core of operational management,which determines the operational efficiency and profitability of enterprises.The research on working capital management began in the 1990 s,who has attracted much attention in recent years because of the effect of the financial crisis.The current working capital management is no longer limited to efficiency-oriented,simple limited subject management.It extends to the supply chain management,business model,channel management and stakeholder management to strengthen management instead,which means pursuing the improvement of efficiency and profitability of enterprises,based on a lower cost of capital guarantees the operation of enterprises however.With the rise of internet electronic commerce,traditional retailing industries are facing the slowdown of Chinese economic and the standing downturn of industry,which is also faced with the pressure in the transformation of business model.Suning commerce group as a pioneer of retail business model transformation,transformed from the original professional retail to chain retail,and now has become the internet retail.In the company's operating,science and technology and all channel elements lead to the self-evolution of this industry and have become the standard of Chinese modern business.It remains to be further explored whether this new-type working capital management has its own uniqueness even though they bear the common features of the retailing industry.Therefore,based on Suning commerce group's transformation into O2 O model,this paper is designed to conduct a comprehensive analysis of the influence of working capital management that resulted by operational transformation of new internet retail enterprises.Firstly,it establishes the core of working capital management target,and then creatively comes up with a three-dimensional analysis framework of profitability,liquidity and risk in working capital management.Finally,under the guidance of this framework,it takes scientific ideas such as element management and channel management as reference,and combines with the industrial characteristics of the retail enterprises.Based on this,a corresponding evaluation indicators of working capital management comes into being.In addition,by analyzing Suning's working capital status before and after its transformation into O2 O model in 2013,and finds that there exist some potential problems of working capital management in its course of transformation.Corresponding suggestions for reference also have been proposed in this paper.