A Strategic And Financial Analysis For N Company

More and more Chinese companies attempt to run as Sino-foreign joint ventures in order to learn advanced foreign management philosophy,improve management abilities by using the effective methodologies.From the perspective of foreign acquisitions,some foreign companies invest an enterprise because of its value,but the others are based on the market competition and thus develop their own brands through suppressing national brands and plunder minority shareholders.Because of lacking experiences,our national enterprises have encountered many problems in the procedure of introducing foreign capital,some of them even disappeared after getting the foreign capital during the process of Chinese-foreign cooperation.For examples,it is so hard to see some national brands such as WAHAHA,ROBUST and MININURSE in current market.Our study object in this paper is the N company,which is one of the enterprises introducing the foreign capitals.Fortunately,though N company was continually suppressed by the foreign companies,it still developed gradually.Nowadays,it has become a leading enterprise among the non-rechargeable batteries industry of China,and its gross profit rate and Chinese market share each year can reach approximately 50%and 80%.In addition,a large quantity of balance can be remained by earning the huge cash profit.This essay analyses N company under the foreign holding background from the strategic and financial perspective,Moreover it points out N company's future development strategy,further explores the companies' experience in dealing with foreign acquisitions.Finally some advises have been provided.The research result indicates that N company should have utilized their internal and external advantages to sustain their development for a long time.Unfortunately,due to the control of foreign big shareholders,it missed the best opportunities to develop foreign market and accomplished the industrial transformation and upgrading.The chaos strategies caused weak strategy implementation capability.In addition,N company with strong financial strength has good cash flow,the financial indicators,which are higher than the industry average,show a good momentum.Furthermore,its strong financial strength provides a strong guarantee for the implementation of the company's strategy.Even if differentiation strategy brings good financial results in the efforts of management and minority shareholders,some problems have to be solved,financial resource slacks due to the constraints of foreign shareholders,N company holds sustainable growth ability but the actual growth is insufficient.In order to face new challenges after the return,national brands need to require technology research and development;constantly develop new products;develop diversify;explore overseas market;look for investment opportunities;seek new sources of growth.To obtain the sustainable development of national enterprises,their own strategy and financial execution should been strengthened,the role of strategic shareholders,management team and minority shareholders ought to be played.