Research On Problems And Countermeasures Of Working Capital Management Of Baofeng Group

In recent years,Internet video companies have sought to diversify their strategic business transformations,preferring to adopt diversified M&A to achieve cross-industry development of their business or to expand upstream and downstream of the industry chain.As an early leader in the Internet industry,Baofeng Group,after starting the eco-federal diversification strategy in 2015,is now facing serious financial problems and has received significant attention from the theoretical and practical circles.The management of working capital is the key concern of enterprise management throughout the entire economic activities.In the context of diversified M&A,it analyzes the problems and countermeasures of the working capital management of Internet video companies by the concept of supply chain management.It has enriched the theoretical research on working capital management and has certain theoretical significance.By combing the existing research literature,it is found that the case studies on the problems and countermeasures of working capital management are mostly directed at physical manufacturing enterprises,such as home appliance companies,beer companies,etc.,mainly using traditional factor management or channel management concepts to analyze.There are few researches on working capital management of Internet video companies.More research is on the performance or financial risks of Internet video companies,ignoring the importance of their working capital management.As a case study paper,under the premise of reading scholars’ relevant literature,clearing relevant concepts and theoretical foundations,it researchs Baofeng Group the working capital management strategy and turnover efficiency of business activities and financial management activities in the past five years through the 2013-2017 annual report data.And then the research understands the current situation of Baofeng Group’s working capital management.Through the analysis of the status quo,we find that the Baofeng Group has excessive reliance on upstream funds,the backlog of inventory items in the sales chain,the slow return of accounts receivable,and the high risk of long-term investment in wealth management activities.Then taking the diversified M&A event started in 2015 as one of the entry points,the paper analyzes the reasons for the problems in the management of working capital,and puts forward effective suggestions for improvement in the procurement,sales and financial activities.In addition,there are few researches on the management of working capital in Baofeng Group.From the background of diversified mergers and acquisitions,what result in the problems from the working capital management of Baofeng Group are analyzed.A lot of the researches on M&A and working capital management are empirical papers.There are few studies in the case,so there are innovations.The proposed improvement measures for the management of working capital of Baofeng Group can be used as a reference for other Internet companies,and it is of practical significance to avoid the blindness of diversified mergers and acquisitions by Internet companies.