Value Chain Based Financial Strategy For Enterprise

In the 21th century, the competition is not between the enterprises but between the value chains. As a kind of value management, financial management focuses on value creating. The research for financial strategy may obtain new viewpoint of value,and combine strategy management, tactical management, value chain management and information management together,and focus its managenment target on every section of the value chain. M.Porter's Value Chain Theory gives us a new way to research financial management. In the last twenty years, financial management got not only an effective tool but also a new concept to analyse and make financial decision from the Value Chain Management Theory. It certainly can improve financial management to a new pattern which is based on value chain. The value chain based financial strategy for enterprise is the most important part of the new financial pattern. It asks the corporation to adapt the economic environment dynamically and see through the trend of the development of value chain to establish its competitive predominance for a long time.The present research is concentreated on the inner management and outer environment's effects on financial strategy, and it gives more attention to specific financial strategy for a single corporation than financial management based on value-chain system. With the help of the theory of value chain, value chain based financial strategy for enterprise makes its research on the financial strategy for value-chain corporation by reforging the process and method of the traditional financial strategy and try to set up a new financial strategy system which fits for the development of corporation in 21th centruy. It is helpful to improve the modern theory and method system of financial strategy and to build up the core competence of the corporation.The dissertation consists of five parts, and the main contents are designed as follows: Part One: Theory of value chain and financial strategy. We review the process of the modern theory of value chain and learn the structure of the modern theory of value chain to find out the effect of the theory on financial management. It is necessary for us to design a new financial management pattern which is based on the value chain. As the financial strategy is the most important part of the new pattern , we try to research the value chain based financial strategies.Part Two: Theory and method of the value chain based financial strategy for enterprise. We try to construct theoretic frame of the value chain based financial strategy for enterprise, which is including surrounding the financial strategy target of maximizing the enterprise's value, four principles for value chain based financial strategy, the matrix of the value chain based financial strategy which consists six basic financial strategy, the method of value chain analysis, et.Part Three: The outer value chain based financial strategy for enterprise. To maximize the creativity of value chain, we put forward the financial strategy for raising capital about how to choose the cooperate fellows, about investing according to the lifecycle of innovating, about making a price to protect the whole profit of the value chain.Part Four: The inner value chain based financial strategy for enterprise. To advance the core competence of enterprise, we explain the strategy of optimizing the capital structure, the strategy of investing on the core competence, the strategy of allocating based on EVA.Part Five: Case analysis. The maneuverability of value chain based financial strategy for enterprise in GOME.The innovations of the dissertation are as follows:1. Enlarging the research range of financial strategy for enterprise.We study the financial strategy from a systemic point of view ,and enlarge the research range of financial from single enterprise to the whole value chain.So we find a new research field. We study from the value chain to construct the financial strategy for the whole value chain. It is a brand new analysis.2. Establishing the basic system of the value chain based financial strategy for enterprise. By systemic analysis and normative research, we design a system of financial strategy which consists of meanings, character, objective, principle, the matrix of financial strategy, etc. 3. Putting forward a method of analyzing and selecting the value chain based financial strategy for enterprise. By exposing the logic connection within the analysis of value chain management, the basic competitive strategy for enterprise and the financial strategy, we put forwarde a method to frame the value chain based financial strategy. It is to select the competitive strategy for enterprise, and choose the financial strategy accordingly.4. Constructing a matrix of the value chain based financial strategy for enterprise. Financial strategy management derives from tradional financial management with strategic ideology. We study from two sides. One is the steps of financial management; the other is the different parts of the value chain. On the basis, we put up with 6 financial strategies for enterprise.5. Putting up a new model of value-mapping between the request of the customer and the value of enterprise. To make the right strategy for programming and configuring the financial resource, we have to estimate the possible value of the enterprise. So we should understand the customer's value exactly and how it determine the value of the enterprise.The customer's value in the objective market determine the total value of enterprise in the value chain and the share which the specific enterprise gets from the value chain.