Research On The Operational Risks And Prevention Of Enterprises In Huawe I’s Industrial Chain

The industrial chain refers to the enterprise group structure formed by the intrinsically linked industrial sectors based on technological and economic associations,which exert comparative advantages and exchange values through their chain characteristics,which is the result of the deepening of the industrial division of labor.The "14th Five-Year Plan" proposes to accelerate the development of a modern industrial system and consolidate and strengthen the foundation of the real economy.China’s industrial chain continues to grow under the blessing of favorable conditions such as agglomeration effect,comparative advantage and huge market size,and more and more enterprises choose to join the industrial chain to pursue future strategic development.However,the overall development of China’s industrial chain is not yet mature,there are problems such as the overall strong external dependence of the industrial chain,insufficient independent innovation ability,etc.,with the outbreak of Sino-US trade war and the new crown epidemic,the industrial chain breaks the chain leading to the failure of a large amount of enterprise operations,and the risk problem of the industrial chain has also begun to receive attention.Therefore,enterprises should not only make good use of the industrial chain to bring help for future value improvement,but also establish a sense of risk,prevent and control the risks transmitted by the chain,especially operational risks,so as to ensure their sustainable development after joining the industrial chain.In order to further study the case companies,this thesis combines the theory of industrial chain,smile curve,transaction cost theory and comprehensive risk management theory as the theoretical basis,defines the basic concept of business risk of industrial chain enterprises,analyzes the causes of risks,and introduces the measures and strategies for preventing business risks of industrial chain enterprises.This thesis takes XYZC as an example to study the operational risks transmitted by the industrial chain to enterprises.On the basis of analyzing and sorting out the connection and motivation of XYZC and Huawei’s industrial chain,the business risks formed after joining the industrial chain were identified,mainly including the following five points: high customer dependence,low anti-risk and bargaining power;Lack of key technologies and unstable yields;Improper settlement method,taking up too many funds;Long product line,imbalance between production and marketing;Product gross margin and corporate net profit margin are low.After that,the causes of risks are analyzed from the perspective of the industrial chain links in which the management and the enterprise are located,corresponding to the following: the lack of risk awareness of the management;Ignoring the risk of information asymmetry;Upstream enterprises have weak right to speak;Production and sales over-cater to the needs of the industrial chain;The industrial chain is running erratically.And the use of traditional financial indicators to analyze the consequences of corporate profitability,growth capacity,current assets and other aspects,it is concluded that the growth rate of the competitiveness of XYZC Enterprises has slowed down;Reduced market attention and access to financing;Derailment of operations and strategic deployment;Damage to inventory backlog profits is adversely affected by operational risks.Finally,based on the above analysis,this thesis responds to and prevents the operational risks of industrial chain enterprises from the following three levels: at the production and operation level,optimize product portfolio,expand R&D efforts and investment,and actively pay attention to market dynamics to ensure the fit of their products to the industrial chain and the market;At the financial level,reach agreements with upstream companies to reduce accounts receivable,make reasonable investments by using the advantage of attention,and improve control systems to improve profitability;Adjust and optimize sales strategies,focus on customer non-financial information,and attach importance to the establishment of risk early warning systems at the strategic management level.The effective prevention of business risks of industrial chain enterprises can reduce transaction costs and help enterprises to cluster closely,in order to gradually maximize long-term enterprise value.