The Financial Strategies Of Joyoung Corporation

A reasonable and effective financial strategy, can not only be combined with the corporate strategy to improve the environmental adaptability of the enterprise financial system;but also enhance the coordination between the corporate financial systems and other enterprise subsystems;in addition, it can helps to create and maintain the financial advantage, and improve the overall competitiveness of the enterprises. Therefore, how to choose a rational and effective financial strategies and put it into successful practice to help companies break through the bottleneck of the development has become the focus of theoretical and practical.After two decades of rapid development,China’s small household electrical appliance industry has made great progress and industrial system as well as the industrial clusters has formed the scale basically.During the international competitiveness is gradually emerging, the main25kinds of small household electrical appliance in the global market share ranked first in the world since the beginning of21st century.Small home appliance industry in the global market and China’s industrial system, occupies an important position in the provision of employment opportunities.Joyoung Co., Ltd. is one of the household electrical appliance enterprises in this process of growing up. Joyoung Soymilk machine market was founded in1994, who leads the technology trends in Soymilk industry15years and promote milk culture vigorously to establish the Joyoung unique channel network and promotion patterns, and shaped Joyoung brand.Joyoung Co., Ltd. with more than80%above the market share occupies long-term leadership position. Therefore the Joyoung company’s financial strategy worthy of our analysis and use for reference. This thesis starting from the strategy theory and the theory of financial strategy, uses Joyoung Co., Ltd. as the object of study,to analysize the financial strategies to generate the starting point the company internal and external environment analysis.and on this basis the company based corporate life financial strategic choice made in the cycle theory, and also study the Joyoung financial strategy implementation organization, personnel and other logistical support.and to make recommendations on its future financial strategy, expect to provide some advice for our enterprise development.This thesis uses a literature analysis, case description of four methods of deductive and inductive analysis. By introducing Joyoung as a case study, and eventually conducted and summarized financial strategic analysis by Joyoung company specific data. In the analysis of the nine positive current business life cycle stages, this thesis proposes the Joyoung financial strategy.(1)Because the funding strategy should be consistent with the best capital structure, Joyoung should adopt relatively high debt ratio, improve the rate of return on equity capital, enhance inventory management and improve capital efficiency.(2)From the longitudinal and transverse appropriate, Joyoung should expand the area of investment to attain diversified investment strategy and financial industry chain extension strategy.(3)The income distribution strategy should be coordinated with the enterprise development. Joyoung should be appropriate to take the high dividend payout ratio of cash dividend policy, safeguard shareholder interests focus on profits, retained profits should be appropriate to develop better view to the company.The thesis argues that the best capital structure, funding strategy should be consistent for Joyoung select corporate investment strategy based on the different life cycle, while corporate income allocation strategy and enterprise development should be compatible.Exploration of the financial strategy of the company’s overall strategic development, coordination and implementation of financial strategy can enrich research in the field. At the same time, the introduction of the corporate life cycle theory, is a major surmount for financial strategy formulation and implementation. This thesis’introduction of Joyoung case analysis is also rich financial strategy of Chinese private enterprises.