A Study On Funds Centralized Management Of China’s Home Appliance Retail Chain Enterprise Group

Enterprise group’s fund management which a core of financial management is always reeognized as a focus by enterprises. Centralized management of fund has been proved a effective fund management mode by a large number of domestic and abroad management practice. It is beneficial for group to centralize its members’funds and control their capital flows, to improve efficiency and management level of capital and to ensure financial security and give full play to the advantages of the group’s overall resources. The choice of fund centralized mode will change as organizational structure, business structure and stage of development has changed. It is a challenge for senior manager to select the appropriate mode of funds centralized management and improve the efficiency of capital.China’s home appliance retail chain enterprise group’s fund operating mode has its own peculiarities and problems in the management of funds is closely related to the fund operation mode which called similar finance and non-core business earnings. In this paper, the case study and comparative analysis has been used. First, based on the conclusion of the relevant literature and theory of fund management, introduced four kinds of centralized management of funds and the features of fund management on China’s home appliance retail chain enterprises. Secondly, take A Group as an example, on the angle of oriented function on funds centralized management compares settlement center to finance companies, it elaborates that in a transition stage of development for a national home retail chain group that A Group’s problems of fund management and the cause of choosing finance company. Finally discusses the application of new mode of finance company on the three aspects. There are account settings of revenue and expenditure and virtual capital pool, professional work process and some other supporting measures. This mode can improve efficiency and management level of internal and centralized funds. Simultaneously, a group which has similar backgrounds to A Group can through finance company to improve the capabilities of centralization and settlement of fund, to broaden investment and financing channels and thus improve the group’s debt structure and financial credit and deepen relationships with suppliers and realize the combination of industry and finance.