Study On Working Capital Management Of Real Estate Enterprises Based On The Theory Of Channels

Working capital management as the business day-to-day financial management of an important component directly impact on the success or failure of business. Scholars at home and abroad that study the management of working capital have no major breakthroughs but still isolated in researching the projects of working capital.In recent years, with wide application of supply chain management,channel relationship management and customer relationship management, enterprise performance management of working capital has been constantly improved.Compared with the innovation of working capital management practices,research of the theory of working capital management,especially in our country,at the depth and breadth is relatively lagging. As a result,combining capital management and business management, starting from the channel management to study the working capital management, insert the modern management concepts and methods of supply chain management, channel relationship management and customer relationship management into the management research of working capital.It will promote the innovation of working capital management theory and method system.This paper starts from the channel theory.It is based on the reclassification of operating funds and then analysis the characteristics of real estate development enterprise.It sets up a new performance evaluation system and management pattern for the real estate business which is based on the theory of capital management. Also,through case analysis,the new working capital management model is used in practice and then it will achieve the goal of improving the level of business operations of fund management and effectively guarding against financial risks.This paper applies the literature analysis,normative analysis,case studies and other research methods.At first,it collects comprehensively of the literature and commentary of working capital management, supply chain management, channel relationship management, customer relationship management and real estate economics.It analyses the conditions of real estate business and the process and status of working capital management. It quotes for working capital management which is based on the channel theory.Secondly,it analyses the channels of working capital of real estate development enterprise and the distribution character of general working capital and then set up the channels working capital management performance evaluation system which is based on channel theory. Finally, it selects a real estate development business to go on with case studies. It analyses the working capital management of procurement channels, production channels and marketing channels and then summary the advanced methods and means of channel relationship management,channel relationship management and customer relationship management and their results and effect in improving working capital management in order to improve working capital management level.The innovation of this paper is that it is from a new way to research the business working capital management.It combines working capital management,business process management and channel management.This approach discards the isolated and one-sided way of working capital in previous research of working capital management.Instead,it is thought the basis of value chain management,Comprehen- -sively study all aspects of working capital from purchase to sale of the entire process. Secondly,on the basis of dividing working capital into operating activities working capital and managing finances activities working capital and on the basis of the channel by the working capital management and the relationship between the business activities of the working capital to carry out the channel distribution character of the real estate development business's working capital. Finally, it builds a management mode for real estate development enterprise which is based on the management of working capital and this advanced working capital management theory's innovation.