CFO'S Financial Management Base: Concentrating Superior Resources

Today, with the acceleration of global integration, the focus of competition will shift from domestic to overseas.

If we want to have certain competitiveness in the international market, the internal management level of enterprises must be further improved.

As an important part of enterprise internal management, the choice of financial management mode is particularly important for enterprises.

Good financial management mode will provide sufficient guarantee and backup support for the landing of enterprise development strategy.

As we all know, the financial management mode can be divided into two types: centralization and decentralization.

There are many debates in the industry regarding the similarities and differences between centralized and decentralized financial management models, mainly based on the distribution of financial core power.

Centralized financial management mode concentrates power on group companies. Major decisions, including investment and financing, asset disposal, dividends and so on, are decided by group headquarters. While decentralized financial management mode is controlled by molecular companies, financial companies have relatively independent management decisions.

From the perspective of characteristics, the advantages of both are different.

Compared with decentralization, the biggest advantage of centralized financial management mode is that it can concentrate all the advantages of the group enterprise resources and do one thing well.

This is very important for enterprises with clearer and unified strategy.

Financial strategy is an important part of enterprise strategy. Centralized financial management mode can help enterprises effectively carry out their own strategies.

And the real reason for the landing of enterprise strategy is that centralized financial management mode has certain advantages in concentrating resources and optimizing resource allocation.

Then, will the centralized management mode lead to the phenomenon of "dictatorship" in the financial management of the group enterprises to a certain extent?

Problems that need special attention in the process of pattern pformation.

Enterprises should not overemphasize the literal meaning of "centralization".

In fact, centralized financial management mode is for the enterprise strategy. The core concept should be to integrate business processes into financial strategy through financial information system and mutual relationship, and ultimately make the overall strategy of the enterprise fall into effect.

Based on this, the power of finance, auditing, public relations and information in four aspects must be concentrated by group enterprises.

Among them, the construction of informatization is the key project that group enterprises need to build.

The enterprise has been issuing the system, but how to control the system and how to control it is the biggest problem.

If there are problems in the management of enterprises, it is often not a problem with the system, but often a problem exists.

Therefore, the most advanced experience in the development of foreign informatization is to ensure the implementation of the system through informatization.

In a perfectly competitive market, an enterprise always seeks a balance between sound management and strategic development.

In the process of development, enterprises should maintain a stable share of a mature market while being committed to the introduction and business operation of new products and technologies. In this process, we can not simply pursue the speed of development, but rather focus on the steady growth of enterprises.

For example, the growth target of different departments and product lines should be consolidated, and the growth rate and target should be determined according to the growth expectation of local GDP and the growth expectation of industry development.

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On the other hand, the target market should be managed vertically to enable the local market to cooperate with the overall strategy.

The highest R & D capability of each product and product line may be laid out in different regions, that is to say, the local market of different regional branches is in line with group strategic planning, but the branch should carry out target value analysis for the locals.

Speaking of the advantages of foreign enterprises in competition, they are mainly reflected in the leading technology and constant quality, fast service, Pang Da's customer base and brand loyalty, high performance price ratio, and good direct selling and distribution channels.

In order to maintain a good competitive situation, enterprises must always pay attention to the dynamic market.

Large economic environment is also changing at any time, like weather. If we want to maintain a good competitive situation, we must first familiarise ourselves with the industrial policies of the state and its impact on customers, and then evaluate the impact of the products.

Besides paying attention to the external environment, the internal financial management mode of enterprises also needs CFO thinking.

If we need to strengthen liquidity risk, exchange rate risk, asset safety risk and receivables risk control.

Besides financial risk control, strategic risks, operational risks and legal risks should also be paid close attention, especially in China.

For example, strategic risk, investment in major projects is also part of strategic risk.

For such risks, a complete business plan, investment return analysis and policy analysis are required before making investment decisions.

And environmental impact assessment.

Foreign capital enterprises are very strict and will pay great attention to the risks of every link.

Generally speaking, foreign enterprises have their own management characteristics. The economic targets in their target management are listed in the first place; the process control is emphasized; the matrix management structure, whether vertical or flat management, pays attention to the combination of global vision and local vision, guarantees the local refinement of strategy, and reduces internal consumption.

Foreign large enterprises pay attention to economic benefits, and they will index the profits and market share they have turned over to.

State owned enterprises are not very strong in terms of indicators because they have many political factors.

At the same time, in terms of process control, such as investment control, foreign large enterprises are concerned about details, while many large domestic enterprises do not pay much attention to details.

In terms of management structure, foreign companies mostly use matrix management, and executives are mostly leaders of different level departments. Many state-owned enterprises have the final say.

The foreign enterprises also attach great importance to the research and development of the products. It is necessary to keep the old and new to avoid the embarrassing situation in the price war. The domestic enterprises should also do a good long-term plan for sustainable development.

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