Methods And Tools To Achieve Financial Management Reform

By analyzing the value chain of any enterprise, we can get the profit distribution of the enterprise.

That is to say, in the whole value chain of enterprises, some are more able to make money, others are less able to make money.

A good profit model is to allocate the resources of the company according to the profit area, and put most of the resources of the enterprise in the place where more profits are generated.

In this way, the company will be able to make profits.

Conversely, if the company misplaces its resources in areas that do not generate profits, the company will lose money or even go bankrupt.

At the same time, in the course of its growth, any profit zone will move along with the growth of time and industry.

If a company wants to survive, it must adjust the profit pattern of the company at the right time.

If we can not grasp and grasp the timing and opportunities of adjustment, then the new profit zone will become an opportunity for other companies to grow.

Value chain management is based on

In order to achieve value added and enhance the competitiveness of enterprises, we should use the modern enterprise management ideas, methods and technologies to achieve effective planning and control of the information flow, logistics, capital flow and value stream in the entire supply chain.

Through the strategic analysis of the whole value chain of enterprises and enterprises, value chain management can find out the value added advantages of enterprises in the market competition.

To build the core competitiveness of enterprises and form competitive advantages.

It can be seen that the emphasis of cost management is on internal cost control, and the merit of value chain management lies in the importance of output and effective allocation of resources.

Therefore, it is absolutely possible to combine the two organically and apply the value chain management and cost management advantages in an interactive way. Through the analysis of the industrial chain and the whole value chain of the enterprise, we can find out the advantages and value-added links of the enterprise, realize the value increment through the strategic integration and centralized allocation of the enterprise resources, create competitive advantages, and carry out the cost value analysis of the micro operation activities, eliminate the waste of resources, save investment, and realize the two value-added aspects of input / output.

From the perspective of value, there are many aspects of Finance:

First, because of the small profits, the sales volume is large, and the accounts are correspondingly large.

From the point of view of resource utilization, working capital can be used. Therefore, if we work hard on the design of the profit making mode, we can make full use of the large amount of working capital generated by operating income.

These funds do not pay interest, which is equivalent to providing a large interest free loan to enterprises, which can raise the rate of return on assets.

Two, entering the era of meager profit also means the maturity of the industry.

From birth to maturity, many inefficient management systems and procedures can be simplified.

Repetitive procedures can be formulated, workers' skills become more mature, and tools can be used more and more. Therefore, all management processes and business processes can be standardized with low gross margins.

But because of the progress of tools, the cost is also decreasing.

With the progress of management, profits can still be generated through mass production.

Simplifying profits by simplifying procedures is an enterprise characteristic in the era of meager profits.

Three, competition in the era of meager profit is in management.

When the enterprise enters the skilled operation operation, the internal management becomes the core force of the enterprise competition, and the management mode is difficult to copy and can not be pplanted, so the entry threshold will be greatly improved.

Therefore, even in the era of meager profits, through the appropriate profit mode design can also raise gross margin.

The era of meager profit represents the advent of knowledge economy.

Relying on knowledge to improve processes, improve management, pform intangible assets into tangible incomes and improve profitability is the practice of meager profits.