Research On The Management Of Working Capital Of The Midea Group

At present,with the continuous development of economic globalization,companies are facing increasingly fierce market competition."Cash is the king" shows that cash,as theblood of the company to maintain normal economic activities,directly affects thesurvival and development of the company.The important position of the management of working capital has been widely recognized.Continuously strengthening the management of working capital and integrating advanced management concepts into the management of working capital is an effective way to help companies occupy a dominant position in the competition.Traditional working capital management focuses on the management of individual elements and lacks an overall concept.Without the overall management of the working capital in the procurement,production,and sales aspects of the business process,it will greatly restrict the efficiency of the company's working capital,affect the value creation of the company,and cannot adapt the company to the current market competition.In order to improve the management performance of working capital,Chinese experts and scholars began to classify working capital,conduct collaborative management of the whole process,andconstantlyadapttochangesinthemarket.The home appliance industry is in a stage of vigorous development.The competition among major companies has entered a white-hot state.The quality of products,technological innovation,and the improvement of service are all reflecting the level of performance of operating funds management to a certain extent.Various companies have strengthened the management of working capital,keeping the amount of working capital in the most reasonable condition,improving the efficiency of use,and improving the performance of working capital management,in order to respond to fierce competition and prevent enterprises from operating due to changes in the external environment.In trouble.Midea Group has been playing a more and more important role in the home appliance industry in recent years.Its operating revenue in 2016 is much higher than that of other companies in the same industry.This is closely related to the continuous improvement and innovation of Midea Group working capital management.This article takes Midea Group as an example,and uses theory related to working capital management as a theoretical support to understand the current working capital management status of Midea Group.At the same time,it analyzes what management strategies the Midea Group adopts in the three stages of procurement,production,and sales,and Through the analysis of financial indicators and non-financial indicators,management performance is evaluated.Midea Group is representative in the home appliance industry and hopes to provide reference values for other companies through analysis of its working capital management,find suitable management methods for them,and continue to develop in fierce competition.