Research On Retail Company's Working Capital Management Based On The Perspective Of Value Chain

Working capital management is an important part of enterprise financial management.The working capital management of an enterprise is closely related to its own value.Combining with the current market environment and the situation of retail industry's capital management in China,we find that the traditional enterprise working capital management is a static method,which does not match the requirements of management.The value chain managementis a strategic tool which can maintains the competitive advantage of enterprises.Value chain runs through the enterprise,each of the activities creating value for enterprises.Therefore,this paper presents a new concept of working capital management,in other word,combining the value chain management and working capital management and setting the working capital as the management object,achieving dynamic working capital management by reinforcing each aspect's management and finding a balance spot in the working capital liquidity,efficiency,security and profitability.In this paper,we research Chinese retail industry because of the changing market environment and the rapid expansion of retail enterprises.Maintaining a good cash flow is very important for retail enterprises because of its short life,Which needs China's retail enterprises working capital management methods make a great improvement.Since this paper presents a new idea of working capital management,the main content of the article is to design a complete working capital management model.The framework of the model includes: the relationship of value chain and working capital management,meanings and goals of working capital management under the view of the value chain,realization and evaluation index system of working capital management.Among them,the most important content is the methods of realizingworking capital management and the construction of evaluation index system,which is the innovation of this article.Then,considering the current market environment,the development trend,the degree of data acquisition and other factors,this article select Suningas an example to analyze Suning'svalue chain which is based on the practical application of working capital management and evaluate the management effect by calculatingindex,and then,according to the effect of Suning'spractice,it provides guidance and suggestion for the working capital management of Chinese retail enterprises.At last,summarize the whole paper,give the conclusion,analyze the shortcomings of the paper,and put forward the further research direction and prospect.