Optimization Of Financial Management System Of Qingdao Hisense Group

Since the twenty-first century, domestic and international situations have undergone profound changes, we walked into the new era with the basic characteristics of information technology, networking and knowledge-driven economy. In this era, many companies have expanded to a global market, which bring opportunities as well as challenges to enterprises. With the increasingly fierce market competition, financial management has become the central link of the chain in enterprise management, which helps the enterprises to achieve their strategic goals. Whether the financial management system would adapt to the growing competition in the market well, prompt enterprises to achieve strategic goals and form their competitive advantages, optimize their regulatory environment and regulatory system, which would give a direct impact to the interests of investors and other stakeholders as well as the rational and efficient allocation of social resources. Perfect financial management system will help enterprises to realize the objective of business value and profit maximization. It will also help enterprises to optimize the capital structure and improve the capacity of disposing production factors, which can radically enhance their abilities to resist risks.As a form of valuation integrated management, financial management play an important role in value creation and strategy development, which provide strong support in decision making. However, due to the highly centralized system of planned economy, many enterprise groups have yet formed a modern financial management system despite repeated reforms and revolutions of mechanism. Although many enterprise groups formed their own characteristics in some aspects by means of the accumulation of financial management experience for decades, there is still significant gap between the current financial situation and modern enterprise system with the development of the socialist market economy. As a company with the largest market value in the world, General Electric Company has achieved the ultimate goal-- to maximize shareholder's value depend on scientific financial management and perfect governance. GE was chosen as the year's most respected U.S. company by "Fortune" magazine for four times, and the year's most admired company in the world by the British "Financial Times" for three times. I used the GE's case for reference in order to optimize the financial management system of enterprise groups in China through deeply analytical investigation.As a case of study, there are many defects in financial management system of Qingdao Hisense Group, which is typical one of enterprise groups in China. With the scientific technology and methods, I gave many optimizing suggestions in order to establish a rational and efficient financial management system, which suit to the overall development strategy of the company. The new system would expand competitive advantage and enhance capacity for sustainable development of Hisense.The ultimate goal of establishing a perfect financial management system is to realize the objective of enterprise's financial affairs, which changes constantly due to different stages of development. In the stage of enterprise's start-up, large scales of fund raising and sales earnings or low bad debt ratio are their financial management objectives. When enterprises continue to grow up and enter into a mature stage, a certain degree of capital accumulation and profits maximization become their objectives. Many renowned enterprise groups just as Hisense in China had developed into the mature stage, but their financial management objectives still remained in the profits maximization without corresponding and timely conversion, which caused their objectives were out of line with their current situations of development when they moved to the international renowned companies. Therefore, how to convert the financial management goals in time and establish the corresponding financial management system has become an urgent task, which has been placed in many enterprise groups. In a word, the establishment of financial management system in enterprise groups is a long-term and systematic work, which needs plan with a financial management pattern suitable for the enterprises according to the development strategies, business environment and their own characteristics. It also needs timely adjustment according to the actual conditions and constitution from each subsystem in order to establish a scientific management system and form their own financial competitive advantages at the same time.