Research On Working Capital Management In AZ China

The pharmaceutical industry is the important industry to the economy and people’s health in China. Three decades since the reform and opening up, with the economy development, the living standards and social health care system in China had been significantly improved. More and more customers and central government realized the great importance of pharmaceutical industry in China.AZ is a UK based innovation driving, global leading pharmaceutical multinational company. AZ’s product line covers eight major therapeutic areas. In2011, AZ’s global sales revenue reached33.6Billion USD. AZ’s sales revenue ranks No.2in China Pharmaceutical market, the first one is Pfizer Inc, a US based pharmaceutical company. With the sharp development and rapid expansion in China market, the effective working capital management of the company becomes more and more important and critical.In this thesis, the working capital management theory has been used for deep analysis of existing issues in working capital management of the company. To solve those issues, a series of solutions has been proposed, incl. strengthen the company’s management, optimize the supply chain; strengthen the cooperation between the company and the banks, strengthen the working capital budget management, use the working capital management ERP system, etc. With more effective working capital process, the company is able to improve the working capital management performance.Through study of working capital of AZ China, the working capital turnover rate is improved, the more sustained and stable cash flow has been reached, the financial risk is also reduced, All of these provides the great financial support for the long-term development and rapid expansion of AZ in China market.