Research On HD Company’s Working Capital Management Based On Value Chain

Working capital is very important to the survival and development of an enterprise.Correct use and management of working capital can help enterprises avoid risks and improve their profitability.The traditional working capital management is a single management of each element,and it is difficult to analyze the working capital operation status and problems of the entire enterprise.The research on working capital management based on value chain is analyzed from two parts: the internal value chain working capital management and the external value chain working capital management.The internal value chain working capital management is studied from the procurement,production and sales links of the enterprise,and the external value chain working capital management is studied from the upstream suppliers and downstream customers of the enterprise.The research on working capital management based on the value chain takes each link in the value chain as the object of enterprise working capital management research.Profitability.This paper takes HD Company as the research object,studies the working capital management of the enterprise from the perspective of the value chain,and analyzes the problems and causes of the enterprise’s working capital management based on the value chain based on the specific situation of HD Company,and proposes appropriate improvement strategies.First,an overview of related concepts and theories;secondly,it introduces the relevant situation of HD company,including the company profile and company sales channels,and then,based on the working capital management theory of the value chain,and draws on the relevant research results of domestic and foreign scholars to describe the company’s internal The external value chain is formed,and the current situation of working capital management is analyzed according to the internal and external value chain.Thirdly,the entropy method is used to evaluate the working capital management level of HD company based on the value chain.Through research,it is found that HD Company has problems in the management of internal value chain working capital,such as unreasonable procurement mechanism in procurement,imperfect management system in production and low turnover efficiency of working capital in sales;in terms of working capital management in external value chain,HD The company has problems such as lack of maintenance and management of suppliers and insufficient attention to customer needs;finally,put forward targeted improvement suggestions for the above problems.In terms of internal value chain,HD company can strengthen the procurement mechanism in the procurement process and improve the management system in the production process.The sales link improves the working capital turnover efficiency of the enterprise,and the external value chain can strengthen the management of suppliers and pay attention to customer needs.HD Company has been established for nearly 30 years.It is an old-fashioned home appliance enterprise and is typical in the home appliance industry.The research on working capital management based on the value chain of HD Company has certain reference and practical significance for other home appliance enterprises to study working capital management.