Research On Working Capital Management Of G Company From The Perspective Of Value Chain

With the development of the economy,trade and investment activities around the world have become increasingly active,and enterprises are facing more and more market challenges,among which the household appliance industry is also facing severe challenges.In order to gain a dominant position in the fierce competition in the home appliance industry,many home appliance companies have fought price wars,or have struggled in marketing methods,and more and more home appliance companies have noticed the importance of strengthening working capital management.As a leading enterprise in the domestic home appliance industry,Company G has also continuously improved its working capital management level.Working capital management is an important part of the healthy operation of enterprises,in order to better achieve the sustainable development of enterprises,enterprises need to continuously improve and improve the existing working capital management model.This requires us to integrate cutting-edge ideas into traditional working capital management methods and value chain theory,so as to make the business operation model more coordinated and sustainable.In this way,enterprises can better meet the needs of the market and get more development opportunities.This paper takes Company G,a leading enterprise in China’s home appliance industry,as a case,and uses literature research method,case analysis method,comparative analysis method,analytic hierarchy method and other methods to study its working capital management based on value chain.This article will be divided into seven parts: Part 1 will delve into the context,purpose and significance of working capital management from a value chain perspective.The second part is the value chain and working capital and the theory of combining the two.The third part introduces the basic situation of the working capital management of Company G,and mainly analyzes the scale,structure and main projects of Company G’s working capital.In the fourth part,the working capital management of Company G is analyzed by static indicators from the perspective of value chain,and then the analytical hierarchy method is used to objectively evaluate the working capital management of Company G.The fifth part,through in-depth analysis,explores the deficiencies in the working capital management of Company G and analyzes the causes.The sixth part,by delving into the financial situation of Company G,provides effective solutions from the perspective of the value chain.Part VII is conclusions and outlooks.After analysis and research,the research conclusions are as follows: First,the procurement process of G Company faces a huge financial burden,and its production and sales efficiency cannot meet the current market demand,resulting in the economic efficiency of the enterprise being affected.Second,Company G’s upstream suppliers have limited financial expenditures,which creates adverse situations for its downstream consumers,such as slower account turnover,which seriously hampers its normal production and operations.The innovation of this paper is mainly reflected in the fact that the article breaks the isolation between various elements of working capital based on the perspective of value chain,and deeply explores effective working capital management strategies based on the actual situation of enterprises,so as to achieve better resource allocation effects and effectively improve the economic benefits of enterprises.