The Research On Fund Management Mode Optimization Of Yihai&Kerry Group

In the twofold economic context of globalization and vigorous growth in China,the oil-processing industry has been plagued in reality with headaches includingexcessive external dependency and overcapacity despite its rapid expansion. As a result,profit margin remains relatively low. It is essential that, for the development of thewhole industry, management be refined and cost-effective. As the leading grain-and-oilprocessor nationwide, Yihai&Kerry Group has taken the initiative to implementrefined management, a significant part of which is refined funds management.The paper’s research object is optimizing the funds management mode for Yihai&Kerry Group. First, the paper starts from sorting out theories and analyzing those relatedto funds management in business groups, including principal-agent theory, financialhierarchy theory, transaction cost theory, asymmetric information theory and internalcapital market theory, and the funds management modes of the group were summarized.Then faults are found out in the current funds management process of Yihai&KerryGroup by analyzing its macro setting and micro setting. Targeting the faults, the authorapplies the theories concerning funds management modes to practice and analyzesinfluencing factors for choosing a mode. As a result, an optimization scheme is putforward for the Group’s funds management mode. In business groups whose power isprimarily centralized and complementarily decentralized, emphasis should be placed oncentralized management mode for funds in cash pools. As for Yihai&Kerry Group, theoptimization of such a mode is expounded through answers to the following questions: i.How to build and maintain the infrastructure-centralized cash pools platform, FSSC andfunds information system? ii. How to carry out funds management process with themode? iii. How to further boost financing income by wielding the advantages of themode to the full? Finally, the control over the implementation of the scheme above wasdiscussed. Performance indicators in the process are specified through detailed practiceof the scheme. In return, the actual outcome of the indicators justifies the scheme.In conclusion, the funds management mode in a business group should be optimizedregularly and improved constantly. Only with ever-increasing applicability can it obtainfavorable earnings through management.