The Analysis Of Wal-mart’s Financial Strategy Selection And Implementation

With the increasingly complex and changing business environment,strategic management has attracted much attention.From the eighties of last century,the research of finance has been studied from theoretical level to strategic level.As an important part of corporate strategy,strengthening the management of financial strategy is conducive to improve the efficiency of enterprise management,reasonably configure financial resources and achieve sustainable business profitability to maximize.The success of the retail giant Wal-Mart is inextricably linked to its financial strategy.The relationship between strategy and financial strategy is mutual influence,mutual promotion and inseparable relationship.The financial strategy is a series of activities with the overall and long-term activities of the decision-makers in the strategic height,with the means of fund raising,operation,management and distribution which is the way to realize the sustainable value of the enterprise.This paper argues that the success of the financial strategy.Not only achieve the value of the enterprise value,but also enhance the ability of the financial.It is divided into expansionary financial strategy,sound financial strategy and defensive financial strategy from risk preference.Most of the previous research on financial strategy focuses on the field of theory,while this paper mainly studies through typical cases in the field of practice on the financial strategy.Wal-Mart’s success has attracted the attention of the majority of experts,but the financial strategy has not attracted more attention.This paper argues that Wal-Mart’s financial strategy is worth learning from China’s retail enterprises.At present,Wal-Mart is in the stage of the growth period,with its own capital continuing to increase and the scale of assets expanding,the growth rate is unstable.In line with the growth period,Wal-Mart has adopted an expansionary financial strategy.In terms of financing strategies,Wal-Mart maintains its target capital structure.Wal-Mart takes advantage of external funds and actively uses external debt funds while strengthen the use of commercial credit and short-term liabilities.In the investment strategy,Wal-Mart mainly use integrated investment strategy,in horizontal continuously expand the scale of enterprises and in vertical establish a partnership with suppliers.And in the long run,Wal-Mart has maintained the investment growth and sustainable growth is in the same;In the dividend distribution,Wal-Mart selected the most suitable remaining dividend policy,in the dividend distribution,as the support of higher profitability,Wal-Mart selected a high cash dividend and stock repurchase portfolio dividend distribution;In the working capital management strategy,Wal-Mart takes a strict working capital management strategy and OPM strategy to reduce the cost of working capital and improve the enterprise’s fluidity.In view of Wal-Mart’s experience and the specific situation of some enterprises in China’s retail industry,in order to formulate and implement the financial strategy better,we need to proceed from the following aspects: The financial strategic objectives should be long-term and consistent with the corporate strategic objectives.In the long run,the actual growth rate of the enterprise should be as consistent as possible with the sustainable growth rate of the enterprise.The enterprise should adopt the diversified investment strategy carefully,and more resources should be focused on the main business to obtain core.