Research On The Optimization Of Operational Capital Management Of M Electric Group From The Perspective Of The Value Chain

As one of the crucial elements of corporate financial management,working capital management directly affects the overall business value.In recent years,the domestic and international outbreak of the COVID-19 pandemic,coupled with the slowdown of investment and sales growth in the real estate industry closely related to the home appliance sector,and the exit of the national inclusive policies,has led to intensified competition among major brands and an overall slowdown in the growth of the electrical manufacturing industry.Therefore,it is of significant practical significance to respond to changes in the market environment,optimize working capital management,and improve capital turnover efficiency.To achieve this goal,the introduction of value chain management thinking based on various value-creating stages in the value chain can help enterprises analyze the current status of capital management in each link and enrich the theory of working capital management,which is essential to assist companies in realizing value-added.Taking M Electrical Group as the case study,this paper employs a combination of literature research,case analysis,and comparative analysis to conduct research on the selected topic.Firstly,relevant literature and theoretical foundations are explicated to support subsequent analysis.Secondly,based on the financial data of M Electrical Group over the past five years,the paper analyzes the management of the company’s working capital from various aspects,including the scale and structure of operating capital,shortterm solvency,cash adequacy,and profitability.Then,the paper introduces the concept of value chain and conducts an in-depth analysis of M Electrical Group’s working capital management from the perspectives of internal value chain,supplier value chain,and customer value chain,revealing issues such as the lack of whole-chain working capital management concept,inventory backlog,insufficient research and development investment,inadequate supplier relationship maintenance,slow accounts receivable collection,and difficulty in dynamic monitoring of funds throughout the process.Based on the problems existing in M Electrical Group,the paper proposes targeted optimization strategies from five aspects,including the overall value chain,internal value chain,supplier value chain,customer value chain,and information support.By integrating value chain management with working capital management,this paper can help M Electrical Group optimize its internal working capital management processes and enhance its own working capital management capabilities,and also provide reference value for other peer enterprises in optimizing their own working capital management.