Research On The Mode Of Combination Of Industry And Finance Of Midea Group

The combination of industry and finance is an inevitable product in the development of the market economy system,an effective tool for the efficient allocation of social resources,and a prosperous road for enterprise groups.In order to meet the needs of the development of the times,more and more enterprises in my country have launched a combination of industry and finance to open up the lifeline of industrial competitiveness,activate the development path of enterprises,optimize the allocation of resources,and make the industry and finance blend and complement each other in a sound operation.In recent years,Internet technology has developed vigorously and the situation has been excellent.The terms "Internet +" and so on appear in the government work report.Reflected in the enterprise group's strategy of combining industry and finance,a new model of "Internet + Finance" struck wildly.Relying on Internet technology,it helps to improve the Group's investment efficiency,diversify financing methods and reduce transaction costs.The combination of industry and finance in computer information technology has become a hot enterprise development path.However,every coin has two sides.The combination of industry and finance can help companies expand their business territory to obtain huge profits while also bringing certain risks to companies,such as the risk of capital market bubbles.With the help of the industry-finance integration strategy,enterprise groups can quickly strengthen their core competitiveness and achieve diversified operations,thereby stabilizing the first echelon in the industry.However,the development history of industry-finance integration in China is relatively short.The understanding of the core elements is also far from each other,resulting in uneven development levels of the combination of industry and finance in China's enterprise groups.Midea Group was listed on Shenzhen Stock Exchange in 2013.It has more than 200 subsidiaries,about 60 overseas branches and 12 strategic business units around the world,and holds about 95% of the equity of KUKA group in Germany.Midea Group has about 130000 employees,and its subordinates include more than ten brands,such as little swan,Midea,Hualing and welling.It is a large-scale comprehensive modern enterprise group mainly engaged in home appliance industry and involved in real estate,logistics,finance and other fields.Since 2010,it has been laying out the financial field.It has been stable all the way,and the financial layout has become better and better.In 2014,it has brought the development concept of industrial chain finance and the whole new market performance.Companies in the core position of the industrial chain can consider the development of industrial chain finance,and provide financial services to all stakeholders in the industrial chain with their own advantages in terms of capital,reputation and credit,so as to realize the development of the whole industrial chain.For other non-financial listed companies that are actively exploring the way of industrial and financial integration,Midea Group's successful industrial and financial integration mode will be a good reference.Therefore,this paper studies the mode of group industry finance integration of Midea,which is of great significance to promote the healthy development of enterprise group industry finance integration in China.This paper first summarizes the mode,motivation and effect of the combination of industry and finance,and then analyzes the motivation of the combination of industry and finance in enterprise groups based on the relevant literature research.The main reasons are as follows: first,the combination of industry and finance can alleviate the financing constraints of enterprises;second,the combination of industry and finance can reduce external transaction cost;third,the combination of industry and finance can create new profit growth point;third,enterprises can obtain the value of industry and finance coordination.On this basis,this paper studies the case of Midea Group's combination of industry and finance.By analyzing the various information and financial data of Midea Group from 2009 to 2018,it is found that the combination of industry and finance of an enterprise group has an obvious promoting effect on the capital turnover ability,financing ability and innovation ability of an enterprise.This paper also summarizes the key factors of Midea Group's successful implementation of the combination of industry and Finance: first,the obvious core competitive advantage;second,an efficient operation management system;third,the leading level of capital and profitability in the industry;fourth,the advanced concept of corporate governance.Based on the Midea Group's financial data,company announcements and financial news,this paper analyzes the main motivations and operational effects of Midea Group's implementation of the combination of industry and finance,and draws the following four conclusions: First,the combination of industry and finance has consolidated Midea Group market influence and brand value;second,the combination of industry and finance has helped Midea Group's transformation and upgrading;third,the combination of industry and finance has promoted the improvement of Midea Group's capital operation level;fourth,the combination of industry and finance has improved Midea Group's operations performance.Combining the full text,this paper draws several enlightenments from this case to other enterprises that plan to implement the combination of industry and finance: first,enterprise groups should maintain coordinated development of industrial finance and enhance their core competitiveness;second,enterprise groups should clarify the development strategy of the combination of industry and finance to adapt to the overall goals of the enterprise;again,the enterprise group should strengthen the risk prevention and control system,and further improve the corporate governance mechanism;finally,the enterprise group should actively train and recruit professional talents to improve the company's management level.