Research On Financial Strategy Based On Enterprise Life Cycle

Since the establishment of the enterprise,the life cycle has begun to evolve along specific trajectories.In the process of formulating a financial strategy,an enterprise must fully integrate the life cycle theory and take the evolution path of the life cycle as the main line,to enhance the reliability of the enterprise's financial strategy as the goal,so as to ensure the effective implementation of the enterprise's financial strategy.In the daily business activities of enterprises,the effective implementation of financial strategies has become an indispensable and important part of the healthy development of enterprises.However,for the moment,most companies in China still adopt the traditional financial management model.This management model does not combine the company's life cycle with the financing behavior,investment behavior,and profit distribution behavior in the financial strategy.Therefore,the formulation and implementation of corporate financial strategies need to be supported by the life cycle,so as to ensure the realization of the company's overall strategic goals in the future.This article first describes the research background,research content,research methods,and research status at home and abroad.It then introduces the life cycle theory and financial strategy theory,and analyzes the inevitability of the company's formulation and implementation of the financial strategy through the analysis of the life cycle theory and define the financial strategy characteristics and financial strategy choices in different life cycle stages;Secondly,we use strategic analysis tools to analyze GL's internal and external environment to clarify the company's strategic environment.At the same time,it adopts the cash flow combination method and the sales trend method to scientifically define the life cycle stage of the company;Again,based on the financial strategy characteristics of the mature period,analyze and evaluate GL's fundraising strategy,investment strategy and profit distribution strategy at the current stage.Then observe GL's financial effectiveness under the existing financial strategy,and find out the problems in the company's financial strategy;Finally,making targeted adjustments and plans from the financial strategy feasibility level and propossing corresponding safeguard measures.This study shows that: First,the study found that the current life cycle of GL is in the mature stage.Second,analyzing the fundraising strategy of GL from the scale of fundraising,fundraising methods and capital structure,and finding that there are problems with too narrow financing channels and unreasonable allocation of capital structure;Analyzing the investment strategy of GL from the investment direction,investment efficiency and investment scale,and find that there is a problem of concentrated investment areas and high investment risks;The profit distribution strategy has the problem of frequent changes in dividend policies and serious problems with high school.Third,GL should adopt a diversified portfolio of fund-raising channels,diversify investment risks,and enrich dividend distribution methods to rationally adjust its financial strategy.The expected contribution of this article is twofold.On the one hand,this article studies the corporate financial strategy from the perspective of lifecycle,comprehensively and systematically collates domestic and foreign relevant literature on corporate lifecycle and financial strategy,and seeks the relevance of financial strategy and enterprise lifecycle theory.To enrich the existing financial strategy theory,to some extent promote the study of financial strategy theory,and provide reference for other companies.On the other hand,combining GL company's operating characteristics,it conducts research from the perspective of the life cycle theory,analyzes and finds problems in the implementation of its financial strategy,and adjusts the company's financial strategy and proposes corresponding safeguard measures for the problems.The realization of the company's overall strategic goals and improve the company's core competitiveness.