YN BaiYao Financial Strategy Case Study

Financial strategy is a reflection of an enterprise's comprehensive management ability.The success or failure of an enterprise's operation is closely related to whether there is a suitable financial strategy for the enterprise.The financial strategy suitable for the enterprise can make the enterprise competitive,so according to the external competition situation and internal status,formulating and implementing the financial strategy in line with the enterprise is an important prerequisite for good operation.In this paper,YN Bai Yao is the object of financial strategy research,its financial strategies are analyzed.In the third chapters,the macro-environment of YN Baiyao is analyzed with PEST model.The external environment has advantages and disadvantages.The advantages lie in the upgrading of consumption,People's demand for health care will be greater,Technological cooperation between large and medium-sized enterprises may lead to technological breakthroughs.The disadvantages lie in stricter supervision and worse financial environment.In addition,SWOT model is used to analysis how the company's strategy formulated basing on the company's internal and external environment,so as to make financial strategy analysis later.Then,in the fourth chapter,it summarizes the characteristics of YN Baiyao's financing strategy,investment strategy,working capital strategy and dividend distribution strategy.The characteristics of financing strategy are Continuously optimizing financing structure,reasonably reducing of financing cost and reasonable control of financing risk.In terms of investment strategy,it adjusts the investment structure according to the company's strategy,when also pays attention to brand operation,production capacity improvement,product R&D(but R&D investment is insufficient),and improves the industrial chains.Operating capital strategy is characterized by rapid receipt and delayed payment,with emphasis on cash management.Dividend distribution should be considered from the longterm and overall perspective.It gives priority to the need of company development,however,the impact of dividend distribution policy on stock price is less considered.Next,it evaluates the effects of YN Bai Yao's financial strategy implementation with financial index method and comprehensive analysis method.In the sixth chapters,the experience and Enlightenment of YN Baiyao's financial strategy are summarized.The main experience and enlightenment are as follows: flexible use of financing methods to continuously optimize the capital structure of the company;making full use of internal advantages to lay out the industrial chain;strengthening the management of working capital and improve the efficiency of working capital;making full use of retained earnings and distributing dividends concurrently when taking into account the interests of all parties.