Discussion On CMS Management Of SE Multinational Group In China

In today’s diversified world economic activities,capital is known as the most important and key part of enterprise operation and management.It is the same for enterprises at any stage and any scale.Just like the importance of "Blood" to the human body,life can continue only if it flows continuously.The same is true for enterprises.Without funds,they can only go bankrupt.Therefore,good capital management not only ensures the current operation of enterprises,but also provides the most powerful guarantee for the future development,scale expansion and going around the world.Under the background of the rapid development of computer and communication technology in the world,in 1970,the major banks in the United States provided the group company with the integrated financial management service based on the CMS mode,which reduced the interest cost of the group company and reduced the bank handling fee.Therefore,it is an effective means for the group company to realize the visual management of all the funds of the group,make full use of the overall funds of the group,fill the lack of funds in the group company,and maximize the efficiency of the use of funds in the group.It has entered the business and financial activities of enterprises in various countries.In 2004,after the famous multinational General Electric Group introduced CMS management into China,over the past ten years,the major group company have also introduced CMS management for capital management.Scholars at home and abroad have also done a lot of research on CMS management,and have made a lot of research results on the necessity of CMS management,how to choose the CMS management mode and what the problems existing in CMS management.However,most of the research objects are large enterprise group companies such as banks and real estate that pay attention to the capital management,but there is little research on manufacturing enterprise groups that carry out manufacturing industry in many countries and have relative difficulties in external financing,and the world economic activities operate on the basis of manufacturing.Moreover,the existing studies are academic discussions on the topics of necessity and management mode selection,and there are few cases of centralized fund management of a specific enterprise group from the micro perspective of practice.Therefore,the research on the CMS management of multinational manufacturing group company is very worth exploring.It can provide cases for China’s manufacturing group company to manage the funds of a large number of overseas group companies in different countries after going out,and find their own CMS management scheme.It also provides case reference for many multinational group companies in China to improve the management level of CMS in China.SE multinational group is a famous large manufacturing group company in Japan.It has carried out business activities in more than 400 group companies in more than 40 countries.It controls the operation of the group’s funds through the world’s five CMS,the cost of capital utilization has been saved and the efficiency has been improved to a certain extent.Using the method of case study,starting from the current situation of the CMS management of SE multinational group in China,this thesis expounds the problems of low funds concentration and low funds use efficiency in the current CMS management,and analyzes that due to the different views on the group view between the group companies,the information communication is not smooth and sufficient the imperfect control mechanism has caused these problems.In view of these problems,from the perspective of practice,this thesis proposes to establish the Unified overall awareness of each group company from top to bottom and targeted,and eliminate the poor communication problems caused by cultural and linguistic differences through expanding information transmission channels and training,Establish an information management system for the effective connection between CMS and business to improve the control mechanism of CMS management,and strengthen the financial and information technology professional knowledge training of CMS staff to improve the CMS management level,so as to improve the efficiency and level of CMS management.At the same time,it also provides some references for other group company that have the same CMS management problems or want to establish a CMS to manage funds.