FH Enterprise Financial Strategic Management Research

As the reform of China's economic and the gradually establishment and improvement of the market competition mechanism, the state-owned enterprises have faced more complicated and realistic issues on their reform and development. The SASAC has made the development strategy plan for the Central Enterprises during the twelfth Five-Year Plan period. The plan emphasizes more on "Being stronger and better" which requires the Central Enterprises to focus on the strategic transformation, to highlight the main business with good company governance and strong international operation ability and level. During the twelfth Five-Year Plan period, Central Enterprises must achieve the diversification of mixed ownership and the goal of getting overall listed as legal persons and then a complete system of board of directors should be developed in time. The strategic planning proposed by Central Government, are especially important for aerospace defense enterprises. FH Company of China Aerospace Science and Technology Corporation has been firmly grasping this historical development opportunities. On the basis of summarizing the performance in the eleventh Five-Year Plan period, FH Company has worked out its future development strategy. This paper tries to discuss the FH Company's financial strategy by combining its development strategy and current situation.The paper consists of six chapters as follows:Chapter One gives the Introduction. This chapter clarifies the purpose, significance, methods and ideas of the research as well as the paper's framework.Chapter Two presents the basic theories of financial strategy management. Here gives the brief analysis on the connotation and features of financial strategy as well as the relationship between the enterprise's strategy and the financial strategy.Chapter Three contains the environmental analysis on the FH Company's financial strategy management resources. By analyzing the internal resources and external conditions of FH Company's financial strategy, this chapter shows how the environment affects company's future condition and it clarifies FH Company's strengthens, weakness, opportunities and risks.Chapter Four involves with the choice of FH Company's financial strategy objectives. Related theories and models of Economics and Management are used to analyze FH Company's financial data in the eleventh Five-Year Plan Period by using the method of qualitative as well as the quantitative analysis. The development trend line of the enterprise . will be found in this chapter by comparing to the industry index and a financial strategy management objective which is subordinate to and serve the company's strategy will be established. The financial strategy goal should maximize the company's value. Specifically, it is implemented as the expansionary financial strategic management goal of the aerospace technology application industry during its growing time.Chapter Five involves with the implementation of FH Company's financial strategy objectives. FH Company's financial strategy management includes the management on financing strategy, investment strategy and the acquisition strategy, etc. The financing strategy is implemented as a combination of long-term and short-term objectives. The short-term objective mainly relies on the State funds, and the support of Group funds serves as complementation. As to the long-term strategy, the objective is to issue shares together with financial liabilities as complementation and coordination. Different industry sectors should adopt corresponding financing strategies. The strategy and aerospace business applies the military infrastructure financing. While the space technology application industry's financing should take two steps:first, the State funds should be utilized during its start-up period, and then, stocks should be used after gaining preliminary market size and benefits. As to the investment strategy, the paper holds the opinion that the company should take a transformation from a manufacturing enterprise to an enterprise which combines the research, manufacturing and marketing altogether. The business direction is clarified as R&D+production+ market operation.Chapter Six gives the evaluation of the implementation of FH Company's financial strategy. It is of great importance to improve an effective strategy control and evaluation system which includes the environment monitoring. Overall budget management is a systematic management aiming at optimizing the overall objectives, which is reflected by the systematicness of overall budget management's content and its methods. By introducing the EVA evaluation system, a scientific adjustment is made on the enterprise's financial strategy on the basis of value analysis and prediction in order to achieve its dynamical optimization according to the change of financial environment.The author hopes the research in this paper can provide some important theoretical basis to the FH Company's scientific financial management, and be a reference to researches and practices of those large and medium-sized stated-owned enterprises'financial strategy management especially the defense industry enterprises.