Research On Great Wall Motor Company Working Capital Management Based On Value Chain

In recent years,Chinese auto industry has faced challenges from rising raw materials and chip shortages,plus the auto market is also becoming saturated,and major auto companies have begun to accelerate their transformation,focusing their reforms on removing production capacity,reducing costs and improving quality,and competition among enterprises has become more intense.In response,automotive enterprises must strengthen the level of financial management and pay attention to the management of working capital in order to improve their comprehensive strength.The automobile manufacturing industry occupies huge working capital in its daily operation activities,and its working capital is characterized by high liquidity and strong changeability,so it is more important to strengthen the management of working capital.Combining the value chain theory with the working capital management of automobile enterprises can integrate the working capital management of automobile enterprises from the overall enterprise level,which helps optimize the working capital structure of automobile enterprises,improve the utilization rate of funds and enhance the sustainable development ability of automobile enterprises.The article takes Great Wall Motor Co.,Ltd.as the research object and analyzes its working capital management based on value chain theory.The article firstly introduces the value chain composition and the basic situation of working capital of Great Wall Motor.Based on the value chain theory,channel management theory and customer relationship theory,the working capital management elements of Great Wall Motor in the value chain are analyzed,followed by the internal and external value chains of the case company,combined with the three-dimensional analysis method,the liquidity,profitability and risk of the working capital are analyzed in depth,from which the areas to be optimized in the working capital management of Great Wall Motor are identified,in order to The study shows that Great Wall Motor has been able to improve its internal and external value chain.The study shows that the working capital management of Great Wall Motor in the internal and external value chains still needs to be optimized,with the following two main problems: firstly,the allocation of funds in each link in the internal value chain needs to be integrated;secondly,the external value chain needs to strengthen the enterprise’s foresight,and the relationship with upstream and downstream needs to be maintained.Based on this,optimization suggestions are made to strengthen the utilization rate of funds in the procurement chain,strictly control the production plan,and strengthen the whole process management.Through the improvement of each link in the value chain,the enterprise value is maximized in order to make the case company grow better and faster.