Research On The Working Capital Management Performance Of Gree Electric Under The OPM Strateg

This paper takes Gree Electric as the research object,based on the channel management theory,value chain management theory and stakeholder theory,and with reference to the working capital management performance evaluation index,the influencing factors of working capital management performance,and the relevant literature on OPM strategy,uses the literature research method,case analysis method,and quantitative analysis method to evaluate the working capital management performance of Gree Electric’s OPM strategy.First,analyze the current situation of working capital management of Gree Electric Appliances.Through the analysis of the motivation,condition and mode of Gree’s OPM strategy,it is concluded that Gree’s OPM strategy uses the "deferred payment" mode.Gree Electric implements the OPM strategy in order to meet the financing needs of enterprises,ensure the quality of parts and increase the sales volume of dealers.Through Porter’s five forces model,it is concluded that the potential entrants of Gree’s air conditioning products have little threat,the supplier’s bargaining power is weak,the buyer’s bargaining power is weak,and the threat of substitutes is small;The competition from Midea Electric Appliances is that Gree must put it first.Gree Electric has great competitive advantages,good business credit and large enterprise size,and has the conditions to implement the OPM strategy.The analysis of the OPM strategic model of Gree Electric first determines the implementation effect of the OPM strategy of Gree Electric,then analyzes the main source of working capital when Gree Electric implements the OPM strategy,analyzes the internal of working capital,and finally determines the operation mode of the OPM strategy as the "deferred payment" mode based on the size of the business credit lines that Gree Electric obtains from upstream and downstream enterprises.Secondly,the entropy method is used to evaluate the performance of working capital management under Gree’s OPM strategy.From the perspective of value chain,the index evaluation system is constructed from four aspects: liquidity,security,profitability and concentration.The entropy method is used to evaluate the performance of Gree Electric’s working capital management.The following conclusions are drawn:(1)The comprehensive performance of Gree Electric’s working capital management has a downward trend.According to the analysis of entropy method,the performance of working capital management under the OPM strategy of Gree Electric Appliances in 2021 is the worst in five years,with a comprehensive score of 0.16593;In 2019,the performance of working capital management under the OPM strategy of Gree Electric was the best in five years,with a comprehensive score of 0.24690.The comprehensive performance of working capital management of Gree Electric has a downward trend.(2)Working capital liquidity is strong.Among the four secondary indicators of Gree Electric’s working capital evaluation,the liquidity score is higher than the other three.The score of liquidity index shows an upward trend.The highest liquidity score occurred in 2019,at 0 12195;The lowest score was 0.01236 in 2017.(3)The security of working capital has weakened.In terms of working capital security,the score of security index shows a downward trend.The highest safety score was 0.05671 in 2018;The lowest score was zero in 2021.(4)The profitability of working capital decreased.According to the comprehensive profitability score of Gree Electric,the profitability score tends to decline from0.12747 in 2017 to 0.02170 in 2021.Reflecting the competitive drama in the air conditioning industry,the price war between the industries has led to the weakening of Gree’s profitability.(5)The concentration of working capital is reduced.In terms of working capital concentration,the score of the concentration index first rose to 0.04363 in 2019,and then fell,indicating that Gree Electric has a lot of room for improvement in reducing supplier concentration and customer concentration.The concentration of suppliers increased,while the concentration of customers decreased.Gree Electric’s ability to occupy the funds of suppliers is declining,and it pays more attention to the interests of downstream distributors.Finally,in order to improve the performance of Gree Electric’s working capital management,it is proposed to strengthen the research and development of core technologies,improve the level of channel management,integrate the supply chain,and strengthen enterprise inventory management.This paper takes Gree Electric as the research object,based on the channel management theory,value chain management theory and stakeholder theory,and with reference to the working capital management performance evaluation index,the influencing factors of working capital management performance,and the relevant literature on OPM strategy,uses the literature research method,case analysis method,and quantitative analysis method to evaluate the working capital management performance of Gree Electric’s OPM strategy.