Research On Improving Fixed Assets Management Of Zhenghong Science And Technology Development

Feed industry is a pivotal agricultural industry which connects crop farming and breeding industry,the healthy,sustainable development of which is beneficial for the construction of agricultural modernization.Nowadays,with small and medium-sized feed enterprises entering into a low-speed growth phase,the competition among the industry has increased drastically.Considering that fixed assets is a means of creating value for the whole enterprise,and the management of it has a vital influence on the operation and development of the enterprise,researching on the management of fixed assets is of great significance.This paper takes Zhenghong Science and Technology Development Co.,Ltd.as a case,thoroughly studying the whole life cycle of fixed assets including investment,daily management and disposal.Under the guidance of Principal-agent Theory,investment decision theories,Asset Allocation Theory and Transaction Cost Theory,this paper analyzes the problems of fixed assets management in Zhenghong and their corresponding reasons,from the perspective of early stage investing,operating strategy,economic environment,geographical location and administrativization in state-owned companies.Unreasonable structure of fixed assets,high idling of fixed assets,low utilization rate and not timely disposals are the main problems.The corresponding reasons are blind investment,excessively diversified operating strategy,small sales network as well as overly complex procedures for examination and approval of fixed assets disposals.Thus,this paper suggests as follows:make scientific investment plans by strengthening the analysis of market investment environment and the feasibility analysis of investment;implement refocusing strategy by assets stripping after enhancing core competences and core business;increase the utilization of fixed assets through fully exploiting the supplementary function of Yuelin highway transportation network and promoting regularization of daily equipment management;expand the disposal scale of assets by vitalizing the stock of fixed assets,polishing the feasibility analysis and enhancing communication with district governments during the disposal.All these measures will not only contribute to the development of Zhenghong,but also enlighten other feed corporations.