Research On The Financial Strategy Of Guangdong Telecom Company Ltd.

In the past ten years, the pace of China Telecom's reformation was very fast, which included market restructure, corporation management and monition system: China released some of her value added service in 1993; China Unicom and China Jitong were set up in 1994; China Telecom (named China Mobile later) became the listed company in the New York and Hong Kong stock market in 1997. China set up Information Industry Department and China Telecom became the actual corporation, whose government capital was clear in 1998; China Telecom was restructured and augmented China Unicom in 1999; China Unicom became listed company in foreign stock market , and Netcom Corporation was set up in 2000; China established China Railcom Corporation in 2001;China implemented its second market structure reformation in 2002, leading to 6 corporations competition in China's primary telecom business.As the '6+1' domestic competition and the market entering permission of foreign telecom company, China Telecom is facing very high pressure and challenge; and the financial strategy management is the primary issue, which also under the strict financial monition and requirements as a listed company.Within the corporation competition issues, financial strategy and management level stands for the corporation capability, because finance is the base of R&D, service, operation and marketing. Only with the healthy financial system and proper financing and investment, overall corporation strategy can be achieved. Financial strategy, as a part of corporation strategy, is important to corporation development, which will have more attention by corporation senior management level.This paper is to apply the financial strategy theory into the practical corporation, which GuangDong Telecom is as the example corporation here. As researcher participated in GuangDong Telecom's strategy programming project, the relationship between its financial strategy and corporation strategy is described and analyzed as below. Above all, principle theories and models of financial strategy are mentioned and be applied to GuangDong Telecom to analyze its historical and current situations. SWOT analysis and foreign telecom corporations' experience are as reference to GuangDong Telecom, which is in its development phase. Then, researcher pointed out the corporation financial strategy position, selection, decision, feasibility and recommendations.