The Research Of H Food Processing Chain Company's Financial Risk Prevention

With the rapid economic development,Chinese people are getting increasingly higher income with the living standard improved constantly.In this case,more and more people choose to take out some part of their income to enjoy life.They are having higher pursuit for material life.At the same time,with constant influence of Korean and Japanese culture in recent years,the young of the current era have increased their purchasing volume of cake slices,bringing new development opportunity for the chain of foods processing.Various chain companies of this industry are developing quite fast in this stage and those small and medium sized chain companies have become the main force in the foods processing industry.While chain companies of this type are performing well under the current economic situation,with weak vitality since establishment,they have to strive hard all the time.Every year witnesses the failure and closing down of plenty of small and medium sized chain companies of the foods processing industry.Through research and investigation,we find many chain companies of this type failed because of their insufficient attention to their financial risks.Therefore,it is of great significance for small and medium sized chain companies in the foods processing industry to increase their awareness of financial risks and make well preparation against those risks.After reading a mass of domestic and foreign literature and analyzing the operation of H Foods Processing Chain Company,I find the reasons for this company's bottleneck in further development lies in raw materials,fresh food inventory costs,investment activities,financial information system,financial management system,competition within the industry and other financial risks.After an analysis on the reasons item by item,this thesis puts forward some solutions accordingly,including attending the particularity of raw materials,knowing the regional difference and seasonal difference,improving the management system of fresh foods inventory,making more rigorous research and investigation for investment schemes before the implementation,establishing comprehensive financial information system to guarantee timely and efficient conveying,hiring professionals to improve the structure of financial management,specifying the rights and duty of financial staff,keeping a rational attitude towards the competition within the industry and taking measures to alleviate the influence of competition on the company.Hope the above solutions can help H Foods Processing Chain Company get through the difficulties towards prospective development and hope this company can take these solutions for reference.