Research On Cash Flow Management Of Konka Group Based On Value Chain

Cash flow,like blood,runs through the production and operation of enterprises,and is an indispensable factor for the survival and development of enterprises.Therefore,cash flow management is particularly important for the future development of enterprises.However,with the emergence of advanced technology and raw materials,the competition between household appliances industry is becoming more and more fierce,and the competition of household appliances enterprises has gradually changed from price competition to industrial value chain competition.This paper first selects Kangjia Group as a case enterprise,and analyzes the cash flow status of business activities,investment activities and fund-raising activities according to the financial data from 2017 to 2019.It is found that the cash flow generated by business activities and investment activities is negative,the cash inflow of fund-raising activities is more,and there are some problems such as long-age accounts receivable occupying the cash flow of enterprises,small contribution of profitability to cash flow,and increasing cash flow risk caused by solvency.Secondly,from the point of view of value chain,the internal value chain mainly focuses on the cash flow of R & D,procurement,production and sales.The vertical value chain mainly studies the supplier value chain and customer value chain of enterprises.Factor analysis is used to compare the cash flow management quality of competitors in the same industry from the perspective of horizontal value chain.Finally,based on the value chain point of view,the paper puts forward some suggestions for optimizing the cash flow management of enterprises,the internal value chain strengthens the bargaining power of the purchasing link,and the sales link speeds up the cash inflow speed.Vertical value chain and suppliers establish value alliance,strengthen cooperation,set up customer value alliance to strengthen accounts receivable management,reduce the possibility of bad debts of accounts receivable.The horizontal value chain speeds up the transformation of R & D results,actively develops high-profit products with competitive advantages,creates sustained cash inflows for enterprises,optimizes production patterns,reduces production costs,and improves the profitability of enterprises.In order to help enterprises strengthen cash flow management,adapt to the fierce market competition environment,promote the development and growth of enterprises.