Research On The Operation Performance Of The Whole Industry Chain Model Of "Chinese Traditional Medicine"

With the development of the economy,the competition between modern enterprises has changed from single enterprise competition to overall competition of the industrial chain.More and more enterprises continue to extend to the upstream and downstream of the industrial chain to realize the layout of the entire industrial chain.After the outbreak of the new crown epidemic,the unique advantages of traditional Chinese medicine in the prevention and treatment of diseases have become prominent.The "14th Five-Year Plan" proposes to accelerate the modernization and industrialization of traditional Chinese medicine and promote traditional Chinese medicine to the world.The traditional Chinese medicine industry has ushered in good development opportunities.Although more and more proprietary Chinese medicine enterprises have begun to build a whole industry chain model to optimize operation and management,whether the whole industry chain model can effectively improve the operation performance of enterprises needs to be studied in depth.This paper sorts out and summarizes the relevant literature on the model and performance of the whole industry chain,and selects China Traditional Chinese Medicine Holdings Co.,Ltd.,a leading enterprise of traditional Chinese medicine formula granules in China,as the research object,borrows the value chain theory,transaction cost theory and synergy effect theory to study and analyze the intrinsic impact mechanism of enterprise performance under the whole industry chain mode of traditional Chinese medicine,and then uses the comparative analysis method to compare and analyze the financial performance and non-financial performance of Chinese traditional medicine in combination with industry average data.The study shows that the operation of the whole industry chain model of traditional Chinese medicine in China effectively improves financial performance and non-financial performance,although it also produces certain negative effects in the process of laying out the whole industry chain model,such as low inventory turnover.However,with proper planning and layout,the impact of these negative effects gradually decreases.The enlightenment from this article is as follows: enterprises should choose a suitable development model based on their own actual situation,seek progress in the process of laying out the whole industrial chain,reasonably expand the industrial scale and gradually digest inventory,at the same time,they should realize the whole industry chain model through a variety of ways,determine the core business to improve competitiveness,and pay attention to preventing financial risks.