Studies On The Application Of Household Electrical Appliance Industry Financial Strategy Matrix

In the times of value management, strategic thinking plays an important role in the enterprises’business activities. The financial strategy emphasizes that the company policy must meet the need for the stages of development and expectations of stakeholders. In1993, Stern Stewart consulting company brought up the performance evaluation index of Eva firstly, and on the basis of which Hawawini proposed the idea of Financial Strategy Matrix in2000. As the theory is new, scholars have yet to focus on it, and the empirical research is rare.Following the guidance of the financial strategic thinking, this article tries to do some empirical analysis in the household appliances industry with the financial strategy matrix, and the financial strategy applied to specific enterprises matrix case analysis. The article aimed at testing the theory in practice management, This not only for financial strategy matrix theory after application of the good matting but also provide a method of reference for the application. And the Financial Strategy Matrix was hoped to be applied flexibly as an effective analytical tool. This article collected financial data of household appliances industry from the year of2007to2010.32listed companies were divided by the development state. The results show that most companies of the household appliances industry are shortage of funds, while the enterprises whose funds are surplus accounted for only28.57%. From the perspective of creating value,71.43%of the enterprises are value-added, while the others which are reducing economic value accounted for about30%.The classification experiments shows that the financial strategy matrix theory is reasonable on the classification of enterprises. The analysis of financial measures to the two listed companies can be proved that the theory of strategic is applicable in practice management. And the Financial Strategy Matrix can be used as an effective analytical tool in management.This article is mainly divided into five parts:The first part is an introduction which includes the background, significance and objective of the research, relevant theoretical basis, content and innovation and so on. The second part is theoretical analysis which describes the content of the financial strategy matrix theory and the advantages. The third part of the article is empirical analysis, which is targeted at household appliances industry to test the feasibility of the financial strategic matrix theory and also get some industry conclusions. The fourth part is the case analysis of household appliances industry. The fifth part is summing up the research results and problems.The innovation of the article is as follows:First, the writer made some exploratory researches on application of the Financial Strategy Matrix which is an innovation for the theory just at the initial stage. Second, in this paper, household appliances industry was used as the object of the research to analyze the development state of enterprises in the industry. This is a useful reference to research the other industries. Last but not least, this article selected enterprises of different development studies, and compared the financial strategy matrix theory with the practice of financial measures. It provides methodological reference in testing the application of theory in practice.