Case Study On Working Capital Strategy Of Qingdao Haier

In recent years,the economic growth of our country has been gradually declining.With the increment of labor costs and the disappearance of demographic dividend,the economic transition has become an inevitable choice.Furthermore,the success of economic transition is largely depending on the success of the enterprise transition.For a long period,the manufacturing industry of our country has been abiding by the development principle "The bigger,the stronger",relying on the operation of asset-heavy and focusing on the growth of market share and business revenue.The profitability of those enterprises is not high in general and the cash flow is insufficient,which have been immersed in the difficult business situation of "Big but not strong" finally.Qingdao Haier is a top enterprise of home appliance manufacturer in our nation,which has established the rich and multi-level strategy system after many years' experience.The working capital strategy is a crucial content of financial strategy,which is closely related to enterprise's business strategy,commercial activities and stakeholders.Among operation strategies of Qingdao Haier,the administration model of working capital is especially worth to have a systematical researchThis thesis mainly adopts the approach of case study analysis and develops elaborative analysis and extensive research focusing on the working capital strategy of Qingdao Haier.Firstly,it evaluates the working capital strategy in general based on the research of significance,administration model and important approaches of working capital strategy of Qingdao Haier in combination with relevant financial data.Secondly,by the comparison of similarities and distinctions of working capital strategy of Qingdao Haier and Gree Electric.it analyzes and then concludes the advantage of working capital strategy of Qingdao Haier Also,it proposes the reference value of its working capital strategy.Lastly,it makes the following conclusion through systematic and deep analysis:Qingdao Haier's working capital strategy,business strategy and commercial activities are mutually matched,and pay more attention to build a new mutually beneficial cooperative relationship with stakeholders.During the era of networking,asset-light will be the trend of enterprise development.The core competitive strength of Qingdao Haier is the administration of the supply chain,which is also the key of its transition to asset-lightThe innovation of this thesis is to analyze the matching relationship between the working capital strategy,business strategy and commercial activities of Qingdao Haier from the perspective of the combination of theory and practice,pointing out that Qingdao Haier's"Zero Working Capital" provides strong supports for realizing its overall strategy.Under the new competitive surroundings,Similar Financial Strategy and OPM Strategy will result in the deterioration of the biological system of the supply chain.