Research On Internal Transfer Pricing Of M Group Company

Along with the development of global economy, the segmentation of enterprise marketing market and the promotion of specialization business module, under the condition of getting through upstream and downstream industry chain, resource sharing, complementary advantages, more and more enterprises will integrate themselves into the group company. In order to better improve the corporate governance and avoid operation risk, the internal transfer pricing by many group as a response to an effective strategic tool of enterprise organization form of change.In the development of transfer pricing strategy, it is necessary to analyze the external economic environment, but also consider the internal operating system, so that the internal transfer pricing system and development strategy matching. In order to adapt to the changing economic environment, the internal transfer pricing strategy changes with the change of macro environment; Its method should also along with the transition of the group company internal business model, and make corresponding adjustments. In the implementation of internal transfer pricing, the internal capital flow of group companies directly changes the profit level of member companies, although it does not affect the overall profit of group companies, but will affect the overall strategy and performance evaluation of group enterprises. Therefore, when determining of transfer pricing, it is also necessary to comply with the principle of target consistency, the principle of independence, autonomy and objectivity principle. In the practice of transfer pricing, internal transfer pricing not only adapts to the long-term strategic development needs of the enterprise, but also avoids the disadvantages caused by the irrational transfer pricing as far as possible in the face of the interests and constraints of all parties.Based on the study of domestic and foreign research theories, this paper expounds the related concepts and relevant theoretical basis of internal transfer pricing by combining theory research with case analysis. First of all, the article studies the internal transfer pricing system composed of product cost pricing, product price, internal transfer pricing and product wholesale and retail price, taking M group company of jewelry industry as research object.Then, through the PEST model, Porter’s five forces model, business strategy, organizational system, performance evaluation, financial management and other influence factors of the transfer pricing, the M group’s internal transfer pricing problems are revealed. Finally, around the enterprise under the new situation, the price strategy of how to match the enterprise organization structure mode, profit distribution, performance evaluation system, put forward internal transfer pricing improvement suggestions and relevant measures, and get the overall train of thought of M group company to establish transfer pricing strategy.The results of this paper are as follows:One is to promote M Group Company to perfect the price system, enhance the competitiveness of the external market and improve the operation efficiency, and get the purpose of effective allocation of internal resources, to provide the theoretical basis for the realization of enterprise development goals; Second is based on the jewelry industry development, Combined with the enterprise group’s business model, enriched the internal transfer pricing system research theory, provides reference basis for price strategies to China’s jewelry enterprises.