The Capital Risk Control Enhances The Competitive Advantages Of The Fast-food Chain Companies

Competition is the very theme of the business world today. No matter the aspect of biology, economics or sociology, competition is widespread. There will be no progress in any area if competition does not exist. However, the worldwide competition is brutal and mortal for those who lack capability to establish constant competitive advantages.Competitive advantages for an enterprise may bring more profit than other companies in some ways from aspects of technology, management, brands, and labor costs. This paper attempts to analyze and comprehend the points of capital risk management, because capital risk management is one of the most important things for the fast-food chain enterprises. At the same time, the author tries to put forward the fundamental methods which may improve the level of corporate capital risk management and assist the fast-food companies to establish their competitive advantages and keep growing.Capital risk management is a constant process that requires a long and gradual process and constant improvement. Due to environmental factors changes, industry characteristics differences and other reasons from the outside, the level of capital risk is constantly changing in different companies at different times, so capital risk management is not a static pattern in different fast-food chain companies. In fact, persistence, recurrence and importance are more evident than before for every fast-food chain companies when they put capital risk management into practice.Capital risk management process needs more than just an employee, a supervisor or a department’s active participation. It needs the whole company to take part in—from its corporate strategy to employees’personal goals, from production line workers to company’s decision-makers, from board of directors to executive departments—and it needs full devotion and effective composition of its various resources from the internal and external of the company, and it needs a keen and unique insight, a flexible and fast reaction, a positive and effective communication and a powerful and excellent execution.From the aspect of the four functions of management:planning, organization, leadership and control, comprehensive and effective capital risk management will enhance the fast-food chain companies’administrative standards and abilities. This will not be the only source of competitive advantages for a single enterprise itself; this will also put forward higher requirements for the management level of all the fast-food chain companies. Therefore, no matter from which point of view, we need to continue to enhance the awareness of capital risk management to assure the enterprises have the power to survive in the increasingly fierce competition in the future.In short, the author anticipates that this paper can play a certain role in promoting fast-food chain companies’competitive advantages by strengthening their capital risk control.However, this paper is completed without more exhaustive investigation, and there must be some limitations for lack of statistic data. May the senior veterans can point the deficiencies out.