Research On The Centralized Financial Management Model Of Changhong Group

With the rapid economy development of China,the constantly expanding enterprise scales,as well as increasing degree of business complexity,business items and product forms,there appears a growing number of global and diversified strategic enterprise groups,of which organizational structures show a flat and networked trend.Against the background,the traditional management mode is no longer applicable to the group developments,which also brings various management difficulties to enterprises.Financial management,one of the core management contents for enterprises,is now facing a great challenge,which requires a reform urgently concerning the financial management concept and mode.Currently,the internationally advanced financial management mode has started to change,mainly manifested in breaking through the limitation of traditional centralization and decentralization,and developing towards the centralized financial management mode which is more conducive to the group's resource allocation and efficiency improvement with the help of the modern network information technology platform.The centralized financial management mode,as a powerful means for enterprises to achieving financial controls,has achieved the functional transformation at three levels of strategic finance,business finance and shared finance,thus getting favored by domestic and foreign enterprise groups and becoming a popular trend for enterprise financial management mode reform.Combing theories and practices,this paper researches on the centralized financial management mode of Changhong Group in detail.Firstly,starting from its traditional financial management mode,the main issued resulted from decentralized management mode are reviewed,as well the necessity and feasibility of adopting centralized financial management mode are analyzed on the basis of the internal and external environment of the group.Then,the paper describes the implementations of the centralized mode in Changhong Group detailedly,covering all perspectives from the overall plan to specific implementation principles and focusing on the analysis and elaboration of the design and implementations regarding the financial system,capital management,accounting platform,comprehensive budget and information system.Finally,this paper summarizes the main issues solved by and the initial benefits generated by the application of centralized financial management mode through induction and summary method,questionnaire survey method,expert consultation method,etc.,and further discusses the remaining key problems and suggestions for optimization.