Research On Enterprise’s Working Capital Management Based On OPM Strategy

Having sufficient and stable capital is the necessary condition for enterprises to develop and grow.For enterprises,working capital exists as the necessary premise and guarantee to achieve their goals,whether it is to maintain their day-to-day operations or to carry out transformation and upgrading.Therefore,if enterprises want to improve their efficiency of capital turnover and achieve better business performance,they need to adopt a more scientific and effective management model of working capital.At present,some enterprises at home and abroad begin to manage the working capital with a new model,namely OPM strategy.This strategic management model of capital can bring enterprises more working capital,relieve their worries about capital supply,and reduce the financing cost.The OPM strategy prompts enterprises to utilize their discourse power and influence in the industry to take up the funds of upstream and downstream enterprises for free,so as to enlarge their own scales and form a virtuous circle.Therefore,the thesis takes the perspective of OPM strategy as the cut-in point and uses OPM strategy,relevant theories of working capital and channel management as the theoretical support,and then takes MD Group as the case study object to study the management of working capital of enterprises by adopting case analysis and comparative analysis.Firstly,the thesis gives a overview of the background and significance of the research,as well as the literature review,research contents and research methods.Secondly,the thesis introduces the situation of the industry and the enterprise.Thirdly,the thesis introduces the conditions for MD Group to implement OPM strategy,the judgment of the group adopting OPM strategy and the concrete implementation method of this strategy.Fourth,the thesis makes a in-depth analysis of the management of working capital of MD under the OPM strategy from the perspectives of structure and channel,and compares and analyzes the relevant indicators of MD and other enterprises.The study found that the enterprise has the following problems in each link: long turnover time of working capital in procurement,low efficiency of production and large inventory of sales,etc.In the end,the thesis analyzes the reasons of the problems and puts forward targeted suggestions,for instance,improving inventory management,optimizing account payable management,making full use of business credit,promoting product innovation,and strengthening product sales capability.