Research On The Management Of Working Capital Of Foci Pharmaceutical Based On Value Chain

With the continuous development of the economy and society,the focus of China’s economic development has gradually shifted from attaching importance to the "high growth rate" of the economic scale to improving efficiency and quality,and the pharmaceutical manufacturing industry,as one of the key pillar industries in China,combines high added value and social benefits,and its healthy development is crucial to promoting the steady progress of China’s economy and society.In 2020 and 2021,the market will be affected by the epidemic and the demand for drugs will expand,further expanding the market scale of the pharmaceutical manufacturing industry.With the economic development and the improvement of the living standard of the residents,China’s pharmaceutical manufacturing industry has a broad development prospect,and the competition in the pharmaceutical market will become more and more stimulating.As an important engine driving the development of enterprise operation,working capital has an important impact on the stability and sustainable development of enterprise operation.To occupy an advantageous position in the fierce market competition,enterprises need to make reasonable planning and management of their own working capital.This paper is based on the value chain perspective to study the effect of enterprise working capital management,with the aim of improving the working capital situation and ensuring the stable and healthy development of enterprises,as well as providing reference for other enterprises of the same type to improve the problems existing in working capital management.This paper proposes a new direction for enterprise working capital management and complements the existing theories on the independent study of the internal and external links of the value chain,while enriching the theoretical content of value chain working capital management in the pharmaceutical manufacturing industry.It is hoped that the working capital management on each link of the enterprise can be optimised in a targeted manner,so as to improve the efficiency of the enterprise’s working capital management,enhance the efficiency of the enterprise’s capital use and strengthen the enterprise’s competitive ability.This paper takes the only state-controlled listed company in Lanzhou Province,LanZhou Foci Pharmaceutical Co.,Ltd.,as a case study,and firstly compares the current situation of research on working capital management and value chain at home and abroad,discusses in detail the value chain theory working capital management theory and customer relationship management theory,clarifies the concept and characteristics of value chain and working capital,and starts the research on this basis.This paper introduces the case study and comparative analysis methods to study the effect of working capital management of Foci Pharmaceutical Co.,Ltd.,analyse the value chain of the enterprise,explain the capital structure and working capital scale of the enterprise,and introduce the implementation path of working capital management of the enterprise.The paper then analyses the working capital management effectiveness of Foci Pharmaceutical Co.,Ltd.from both internal and external value chain perspectives,and finds that there are management weaknesses in each link of the internal and external value chain through working capital-related indicators and the Z-Score model.The paper concludes with lessons learned and suggestions for optimisation in order to improve the efficiency of working capital management.