Research On The Financial Strategy Of Company A

With the high-speed development of information technology, internationalcontact becoming more closely, the development of the enterprise environment hasbecome more complicated. Managers of enterprises should not only formulatedevelopment strategies starting from the overall, but more plan financial strategy tomeet the overall development strategies from the perspective of financial, for standingin the increasingly complex environment, achieving sustainable development. Sincethe1990s, the retail industry in our country what has became an indispensable part inthe development of national economy is developing rapidly. The retail industry in theposition of national economy has caused the great attention of many experts andscholars. Since December2004, China’s retail market open fully, Carrefour, Wal-mart,Lotus and other foreign retail enterprises swarm into our country, which makes theChinese retail market more competitive. Companies must use financial resourceseffectively, formulate and implement financial strategy which is suitable forenterprise, if they want to survival and development. Company A in the retail industryis the research object in this paper, the purpose I study its financial strategy is to usethe correct financial strategy for the enterprise to create more value, enhance theenterprise’s market competitiveness, and ensure its sustainable development.This paper firstly summarizes the research status of financial strategy at homeand abroad, the related content of financial strategy and financial strategy matrix,which is laying a theoretical foundation for later analysis. Then analyzes CompanyA’s present situation, the environment of implementing financial strategy, thefinancial goals to follow, the financial strategy before it optimized and its financialsituation. Through the analysis I find Company A’s profitability is stronger, but theliquidity risk and financial risk has a tendency to increase, the company has been tocreate value, but too fast growing leads to a shortage of funds. In view of the existingproblems of Company A, I put forward some suggestions on the optimization offinancial strategy according to the theory of financial strategy matrix. It gets somefinancial effect after Company A adjusted its financial strategy, but it still has someproblem to improve, so I put forward further suggestions to promote the effectiveimplementation of financial strategy and the realization of financial strategic target.It’s the first research on sustainable growth of specific retail enterprises, andoptimizing its financial strategy through using financial strategy matrix. I hope the conclusion of this paper can provide some reference for managers to developfinancial strategy.