Working Capital Management Of Vanke Group Under Diversified Development Strategy

As an important guarantee for the long-term development of enterprises,working capital has an irreplaceable role in maintaining business operations and resisting risks.Working capital management is in an important position in the financial management of enterprises.The proper working capital management system can help enterprises balance the relationship between liquidity and profitability,and finally achieve the stable and healthy development of enterprises.The financial risks associated with poor working capital management will also be difficult to estimate.As one of the leading enterprises in China's real estate industry,Vanke Group put forward the management method of working capital very early and achieved success in the development process at that time.However,when the trend of "derealising" spread in the real estate industry,Vanke Group gradually emerged a shortage of funds,a large debt gap,and lower profits.The root cause is that the old working capital management method can not meet the capital needs of Vanke Group during the expansion phase and hinders the development of the company.Working capital is the most important financial resource.Once the expansion speed is too fast and there is no supporting capital support,the company will fall into a financial crisis.This paper reclassifies the working capital according to the different channels of the enterprise's business process.On this basis,it introduces the relevant theories such as supply chain management and channel relationship management,and focuses on the cooperation between working capital management and enterprise business.Taking the diversified development of Vanke Group in recent years as a breakthrough point,the working capital management level under the diversified development strategy is studied.Under the situation of gradually strengthening the state's control over real estate,Vanke Group has expanded its business in many areas such as commercial real estate and logistics.However,the development process ofcommercial real estate and other projects is too fast,the capital chain is tight,and there are many problems in the development process.Based on the environment of Vanke Group's diversified development strategy,this paper systematically analyses the current management level of Vanke Group's working capital by using comparative analysis method,combining the characteristics of real estate enterprise's working capital management and the structure and management performance of Vanke Group's working capital.This paper explores the advantages and disadvantages of working capital management,and puts forward corresponding countermeasures from the aspects of working capital management mode,enterprise development scale,channel membership relationship,etc.At the same time,we hope to draw some valuable experience and Enlightenment from it so as to play a reference role in the management of operating funds of other real estate enterprises.