Research On The Impact Of Mengniu Dairy’s Financial Sharing On Corporate Working Capital Management

In the late 20 th century,with the continuous improvement of China’s economic system,the development of various industries has just started,and its development potential is great.At the same time,major multinational enterprises have entered China in succession to seize the market.In order to more effectively integrate market resources,improve the management efficiency of working capital,and compete with international large groups in the market,our company has launched a series of mergers and acquisitions in the market,gradually forming a group and more national situation.After a larger scale expansion,the number of unit members increased very rapidly,and the internal organization became more complex,resulting in a series of problems,such as information asymmetry of parent and subsidiary companies,inadequate implementation of decisions,and even business separation.Therefore,in this context,Chinese enterprises began to look for internal resource integration and value creation,and to find a way to match such scale expansion,and this way was finally found,which is the financial sharing method analyzed below.In the 1990 s,Ford,with technical support from IBM,established the first financial sharing provider in the world.After that,many foreign companies explored the financial sharing mode to seek the effective integration and flow of internal resources of the enterprise,so as to improve the level of working capital management of the enterprise and thus improve the business value of the enterprise.As a large state-owned telecommunications enterprise,ZTE established a financial sharing service platform in 2005,which opened a page of the financial service platform in the domestic financial service field.Subsequently,a number of Chinese companies,such as Qingdao Haier Group,Mengniu Group,Huawei Group and CCB Group,began to implement financial sharing nationwide,which also has certain reference value for other companies.This financial sharing method has produced a good effect on the company’s working capital management and has a good reference for the company’s working capital management.To this end,the Ministry of Finance issued the "Accounting Informatization Work Specification for Enterprises" in December 2013,requiring qualified enterprises to carry out unified accounting within the group and realize the sharing of accounting services.Since then,more and more large companies have begun to adopt the way of financial sharing to optimize the company’s financial management model.In order to determine the correlation between financial sharing and working capital management in specific operations,this study intends to take Mengniu Dairy as a case to discuss the following issues: 1.What is the impact of financial sharing on working capital management;Second,how does financial sharing affect the working capital management performance of enterprises.