Research On Financial Strategy Of Wen Shan Power CO. Ltd Based On Financial Strategy Matrix

In recent years at the fierce market competition,the internal production and management environment has undergone tremendous changes.The strategic management of enterprises has been complicated and changeable due to fierce market competition.In such a business environment,it has become an important part of the prosperity and development of modern enterprises to give full play to their own resources advantages,avoid financial risks,implement effective strategic management and timely adjust their strategies.The idea of financial strategy has been penetrated into enterprise management and has gradually become the frontier of modern financial theory.It is an inevitable trend that strategic thinking is integrated into financial management.The financial strategy matrix is currently being evaluated as the primary tool for corporate financial strategy,it combines the idea of enterprise value creation with the idea of sustainable growth,provides a theoretical model for enterprises to formulate and implement financial strategies,and has the advantage of avoiding short-sighted behavior of enterprises.With the help of the financial strategy matrix tool,Wenshan Electric Power Co.,Ltd.was selected as the research object,and was analyzed and sorted to construct the image of Wenshan Power Finance Strategic Matrix by the financial data of 2013-2016.Through the study of strategic matrix graphics,It shows that Wenshan Power has crossed the three quadrants of the financial strategy matrix.The sales growth rate and sustainable growth rate are always fluctuating and fluctuating.As a result,in 2015 the company experienced an event that reduced shareholders’ finances is considered to be trend of heavy asset structure,over-indebted financial risk and profit distribution strategy which may bring stock price fluctuations.Finally,according to the specific circumstances of the company,the company is proposed to diversify investment,rationally formulate profit distribution policies,and adopt various financing methods.