Why Did Chinese Enterprises Break Up Capital Chain?

The breakup of capital flow leads to the failure of enterprises, which is only a reflection of direct problems.

The function of enterprise management is embodied in system and safety.

In the process of growth, Chinese enterprises still need to cultivate their competitive ability from the inside to the outside world. This is the way to become stronger, and only by importing resources from outside to inside (merger and investment), it is possible to expand, but there is no sustainable development capability.

Now, many enterprises are expanding their businesses by means of financial means. What are the risks of doing so? Why do Chinese enterprises break the chain of funds in succession?

The development of enterprises must rely on the means of financing and financial leverage, which is the inevitable path for the development of enterprises.

But why some enterprises can develop by the role of financial leverage, and more enterprises collapse, in the final analysis, is the ability of enterprises, because it has not dealt with the balance of three aspects -- strategic development, enterprise profitability and capital market demand.

The implementation of the real capabilities of enterprises should be based on the maximum efficiency of input and output.

And many enterprises that we have seen will go against the fundamentals of business efficiency once they are bigger, but simply expand and replace them with financial means.

Financing is only a financial means. The leverage of capital to leverage the development of enterprises also has the risks of pros and cons.

The leverage of finance is great, and the rate of return of shareholders will also increase. At the same time, the financial risk of enterprises will increase as the development of enterprises accelerates.

So, this is a great test to the control ability of the enterprise.

Therefore, when the means of capital expansion are magnified, the ability of the other part will be faced with great challenges.

The role of financial leverage in many enterprises in China has increased the risk of weakness in other areas. Once an enterprise expands, it often loses control.

What is the status of financial management in the current business operation?

First of all, Chinese enterprises have not generally regarded financial management as a key point of enterprise management.

No enterprise really manages and manages the enterprise around finance.

The risk of Chinese enterprises in this area is enormous, and the understanding in this regard is still relatively simple.

The real concern of enterprises is the process of value creation, that is, the business process of an enterprise.

And this process is the implementation process of enterprise financial guarantee.

Enterprises are in the risk of market competition and are full of risks. The financial management of enterprises is to ensure the balance between the business process and the objectives.

The financial risk prevention of enterprises is embodied in the basic principle of guaranteeing enterprises to "live" before they can "advance".

Only under the premise of security can we ensure the realization of goals.

What are the risks of financial management in enterprises?

The risk of financial management is concentrated in the poor combination of all aspects of enterprise management.

At present, the combination of external market development and internal support capability of Chinese enterprises, the combination of financing and strategic planning of enterprises is very scarce, and management is very loose.

As a result, although many enterprises expanded, they soon collapsed.

They are not systematic in terms of financial management or operation of the whole enterprise.

Enterprises such as Taizi milk have great support for the government. However, too fast expansion has led to the tension of the capital chain. In fact, it is also a strategic layout. However, such expansion is out of place because of the inaccurate judgment of the management and the crisis faced by the entire dairy industry.

Relatively speaking, associative

Better, its ability to resist risks will be stronger.

What is the relationship between financial management and management? How should the two cooperate?

The financial risk comes from the risk of operation, accompanied by all activities of the enterprise.

Enterprise investment is pformed from cash to assets and then proceeds to cash receipts. This cycle is the process of business operation. Enterprises must maintain a healthy cycle of operation if they want to maintain their operation.

Ours

There has been no good control of the main business, one is the control of the enterprise strategy, that is, when enterprises formulate strategies, they do not consider the financial support capability; second do not consider the risks of the external market, that is, the operation of the customer market; third, without considering the downward trend, the chain of the supply chain of enterprises is not completely controlled.

Therefore, finance can not be well integrated with operation.

Therefore, the operation of an enterprise should focus on financial management, and combine the three directions of the enterprise upward, outward and downward.