Study On Financial Strategy In Core Competence Cultivating

This paper mainly talks about how enterprises to select financial strategy in the case of the level of core competence. It emphasizes that the development of core competence should be the objective of financial strategy.The dynamic level of core competence will affect fund stream and trend. This paper logically made some conclusion about financial strategy in different stages of core competence cultivating by deduction and induction. In Enterprise's Basic Competence Period, the investment strategy gives priority to a concentrative investment policy. As to the financing strategy, it is necessary to use own fund and non-encashed part in cost. And it is available to no dividends distribution. In Enterprise's Sub-core Competence Period, it proposed to implement the integrated strategy. It is also suggested that an enterprise set up modern enterprise system in due time, intensify its financing ability and use full of capital market. As to dividends distribution, it is necessary to use low dividends distribution. In Enterprise's Core Competence Period, the diversifiedstrategy shall be the first choice for investment strategy. The author proposes to use financing lever. As to the dividends distribution, we shall take up appropriate distribution policy to enhance further the confidence of investors.Make financial strategies in three basic activities such as investment, financing and dividends distribution is very important. On one hand, it ensures the whole cash flow effectively and balanced, avoiding financial risk with good use of funds, on the other hands, it trains enterprise's competent and makes them develop rapidly. To verify the conclusion, a demonstration on the financial strategy of Zhejiang Transfar Co., Ltd is offered eventually.Taking the business operations under core competence as background and based on the process of core competence cultivating, in this article the theory of enterprise's financial strategy and its selection are discussed systematically. The study may be beneficial to China's enterprises which shall program their development in future in accordance to existing circumstances and possible changes in coming years.