Research On Working Capital Management Of A Seed Enterprise Based On Channel Theory

As the capital with the fastest turnover and the strongest liquidity,working capital,its management level directly affects the survival and development of the enterprise.With the arrival of economic globalization and the information age,companies in various industries are actively innovating and seeking development in line with the trend,and their business are upgrading,and the capital flows are more frequent.How to improve the working capital management of enterprises and improve the ability to cope with risks has become the focus of current academic circles and enterprises.However,in the past,the working capital management used a single project as the analysis object,without relying on the business process of the enterprise,it was already difficult to meet the management needs of modern enterprises.The introduction of a new perspective on channel theory made up for the drawbacks,which is helpful for enterprises to improve their working capital management level from a strategic perspective.In recent years,China's seed market has oversupplied.After the variety approval channel opened,new varieties have erupted and homogenization has become serious.The competition in the seed industry has intensified,and seed companies are facing greater business risks and challenges.To cope with the fierce external market competition,while meeting its own internal management needs,improving the working capital management level is a necessary means for seed companies to ensure normal operation and development.Therefore,it is of great significance to apply channel theory to the research of working capital management of specific seed companies.Based on the channel theory,this paper studies the working capital management of A seed company by using the research methods of literature analysis,case analysis and field research.This paper first analyzes and summarizes the literature about working capital management at home and abroad,and then based on previous studies,expounds the basic theory of working capital management of seed companies,which lays the foundation for the following specific research on A seed company.Secondly,through introducing A seed company's basic and working capital management status,this paper points out the drawbacks of its current working capital management,and puts forward the need and feasibility of introducing channel theory to it.Then combining with the channel theory,starting from the structure and management efficiency of the working capital of A seed company,this paper carry out the horizontal and vertical comparative analysis.It is found that there are too many accounts payable in the procurement channel;the production channel "order planting" mode fails to give full play to its advantages;the sales channel has a large backlog of inventory;the problem of low efficiency in the use of financial funds,as a whole,all channels of funds unreasonable allocation and high risk.Finally,the paper puts forward optimization suggestions for the identified problems,and points out in the conclusion that all channels should jointly optimize and cooperate to improve the working capital management level of A seed company as a whole.It is hoped that this study can provide some reference for other seed companies' working capital management.