Study On Cash Flow Risk Management Of Gac Group In The View Of Value Chain

Due to the development of information and economy as well as the advancement of globalization,all enterprises are closely linked.On the basis of satisfying their own business development,enterprises also need to constantly contact and cooperate with the outside world to expand their own industrial chain and seek development.Enterprises are easy to face cash flow risk in the process of sustainable development,so cash flow risk management for enterprises has become an important choice for their operation and development.Traditional cash flow risk management mainly focus on the operation of the company internal lack of close ties with the value chain upstream and downstream and financial institutions,in order to the better development of enterprises in the future,the enterprise should not only develop the internal operation and management activities,as well as work closely with external,better use of cash flow to maximize the enterprise value.The automobile manufacturing industry is a capital-intensive industry with high requirements on cash flow,so scientific and effective cash flow management is of great importance to the industry.In this paper,GAC Group in China’s automobile manufacturing industry is selected as the case object.Based on the value chain perspective,firstly,the cash flow risks existing in GAC group’s internal and external value chain are identified,and the causes of the risks are summarized.The external factors include severe economic situation,financial policy tightening and macro-policy impact.Internal factors include slow turnover of overstocked inventory,large proportion of accounts receivable,large amount of bank loans and financing single mode of capital and low efficiency of research and development.Thirdly,starting from the safety and value creation of cash flow management,the Logistic method is used to build a model through the five aspects of cash flow to quantify the cash flow risk of GAC Group.Finally,according to the cash flow risk of GAC Group,the control measures are put forward from the internal and external value chains,including improving procurement process,optimizing production mode,improving cash collection capacity and paying attention to resesrch and development.The external value chain includes establishing value alliance between suppliers and banks,strengthening customer relationship management,and at the same time,it also puts forward the safeguard measures for the implementation of the strategy from four aspects of system,organization,personnel and technology,hoping to be helpful to the cash flow risk management of GAC Group.