Research On Cash Flow Management Of GREE Electric Appliance Based On Enterprise Value Chain

Cash flow is as important to the enterprise as blood is to the human body.It is integrated into every link of the enterprise's production and operation and is an indispensable factor for the enterprise to flourish.It is necessary to strengthen and optimize the cash flow management of enterprises,especially with the development of value chain theory and the expansion of its influence in recent years.Modern enterprises are more aware of the necessity of cash flow management based on the value chain,and hope to analyze the characteristics of each value creation link in the enterprise value chain.Combine the key links of cash flow management with the value creation links in the value chain In order to improve the efficiency of cash flow,reduce the cost of cash flow management in the whole value chain,and make up for its limitations and shortcomings,and then enhance the competitiveness of the enterprise in the industry,Realize the whole process of cash flow value creation.Through collecting the data of Gree in the past three years,this paper analyzes the cash flow of Gree's three major activities,I.e.,operating activities,investment activities and fund-raising activities,from the perspective of value chain.It is found that Gree Electric has been maintaining a stable and sufficient cash flow for a long time,and its strong cash flow mainly comes from the business activities of the enterprise,and its investment activities and fund-raising activities contribute less to the cash flow.Then,the application of Gree cash flow management in each link of internal and external value chain is studied.In the internal value chain,the flow rate,process,flow direction and flow rate of Gree cash flow are analyzed and adopted.In the aspect of external value chain,we set up value alliance,share information and cooperate with suppliers,customers,banks and so on to achieve the purpose of optimizingcontrol and using cash flow.In addition,the cash flow management of Gree is compared with that of the same type of enterprises in the industry,and several questions are summarized: the problem of the occupation of cash flow caused by Gree inventory backlog,the problem of low return on investment of free cash flow;The enterprise constructs the value chain transformation diversification development and so on question.The results show that: compared with the traditional cash flow management method,the enterprise cash flow management based on the value chain can be targeted at the internal and external value chain related to the management of cash flow.This can not only ensure the accuracy,timeliness and comprehensiveness of cash flow management information,but also analyze the validity and rationality of cash flow management from the perspective of value chain.Scientific cash flow management decision provides an important basis to help enterprises adjust,improve cash flow management system,reduce the cost of cash flow management in the whole value chain,and realize the enterprise sustainable,closely combined with the value chain correlation.Links,diversified transformation of the development needs.Based on this,On this basis,this paper draws the following conclusions:Gree has a strong cash flow at the same time,and has a "domineering" credit ability and "strong" ability to pay back,in addition,Gree should further establish the strategic synergetic management mechanism of supplier cash flow and carry out diversified and effective investment so as to spread the cash flow risk.