Research On Working Capital Management Of Snowman Company Limited Based In The Value Chain

Working capital is an indispensable part of enterprise production and operation.The success of working capital management seriously affects the development of enterprises.With the development of economic globalization,enterprises are facing more and more competition pressure.In order to be able to stand out in the industry,many enterprises continue to change and innovate the way of working capital management,among which the theory of value chain is widely accepted.It is a strategic management way to combine the management of value chain and working capital.Value chain analysis includes internal value chain analysis and external value chain analysis.In the internal value chain analysis,it is necessary to analyze the purchasing links of enterprises by means of channel theory,related to whether there are no value-added operations in the production and marketing links and how to realize the value-added in production.External value chain analysis is mainly through the analysis of supply chain and customer relationship management.Through the combination of the internal value chain and the external value chain to analyze the management of the working capital of the enterprise,it will certainly perfect and improve the management of the working capital of the enterprise.Working capital management with value chain theory will be more accurate than traditional working capital management theory.The traditional theory of working capital management is that enterprises reduce their costs by purchasing large quantities of raw materials and bidding by suppliers,and then cut the occupation of working capital by reducing costs.However,this approach to the management of working capital is too general,there is no specific analysis of which link that there is a problem of excessive occupation of working capital.The theory of value chain requires that all the links of the enterprise be integrated,and then analyze whether there are value-added activities in each link,which is more scientific and effective to analyze the working capital management of the enterprise.Snowman Shares Company is belong to the mechanical manufacturing industry,mainly producing ice-making equipment.Among the manufacturing industry,Snowman is a very prominent productivity company which uses large working capital in its business.In this paper,using Snowman Shares Company as a case study is more representative.This paper analyzes the working capital management of Snowman by combining the working capital management with the value chain.The first part of this paper introduces the research background,purpose and significance of working capital management based on value chain,and introduces the research on working capital management and value chain at home and abroad,so that the necessity of combining value chain theory with working capital management theory is analyzed.The second part introduces the related concepts of value chain and working capital management,thus we have a clear understanding of the value chain and working capital.The third part is the company introduction of the Snowman and the analysis of the working capital management of it through the value chain theory.In this part,the article not only analyzes the specific occupation of the working capital in the purchasing channel,production channel and marketing channel,but also involves the cooperation between the snowman shares and suppliers and customers.The fourth part is mainly through the analysis of the third part of the article,finds that the Snowman in the working capital management of some problems.The fifth part is related to the corresponding countermeasures to the problems existing in the management of the Snowman's working capital.The sixth part of the article is a summary of the article and points out the deficiencies of the article.It is hoped that this article will be able to help China's enterprises in working capital management.