The Case Of Great Wall Film Group’s Radical Expansion

With the social and economic development,SMEs are no longer satisfied with a single business,but are expanding to diversification,seeking a larger market and competing for more profits.But business expansion cannot be blind and radical.Matching speed and quality is the best way.Enterprise resources are limited,of which funds are the most important link.If radical expansion is bound to bring financial crisis.How to maintain sustainable growth is also a big issue that companies need to pay attention to.The main protagonist of the case in this article is Great Wall Film and Television.Through the literature research method,comparative research method and case analysis method to study its financial status and management in the expansion process since the backdoor listing in 2014,according to the Higgins sustainable growth rate model,we obtain Sustainable growth rate and actual growth rate,in order to define the radical expansion of Great Wall Film and TV and determine the financial status.The performance of the crisis.According to the internal and external factors of Great Wall Film and Television,find the main cause of the crisis of the capital chain,and then take appropriate measures to express my opinions and methods on the change of its dangerous current situation,so that Great Wall Film and Television can maintain sustainable growth.Finally,it is concluded that when the company expands to an unfamiliar industry,it needs the right time and the funds invested need to be moderate;second:during the expansion period,increase the awareness of the risk of financial crisis,such as excessive goodwill and its Value;finally,corporate governance needs to avoid high-level centralization and decision-making dictatorship.