| When a company grows to a specific stage,it usually seeks scale expansion to drive the company’s growth.However,if the market environment changes and the company’s expansion strategy is improper,blindly pursuing volume growth will bring huge pressure to the company’s subsequent operations,which can easily lead to the company’s digestion.Bad and "struck to death".The apparel industry has always favored economies of scale.In 2019,the pattern of listed companies in apparel companies was very turbulent.The events of the devaluation of Fortune Bird,the bankruptcy of Jenvis,the loss of Noble Bird and Daphne,and the huge loss of La Chapelle’s performance have occurred frequently.These original fast-growing companies have exploded due to financial risks.The sudden entry into the winter of performance is thought-provoking.Based on this background,the core research question raised in this paper is whether there is a check-and-balance relationship between strategic expansion and financial risk,which in turn helps companies judge the suitability of current strategies.At present,most academic research on corporate strategy is focused on strategy formulation and implementation effects.Most of the research on financial risk is analyzed from the perspective of risk formation,risk evaluation,and risk management,and there is no direct correlation between the relationship between corporate strategic expansion and financial risk.Literature,there are research gaps.This article selects the former domestic women’s leading company La Chapelle as the research object,using a case study method.First,it discusses the interaction path of corporate strategic expansion and financial risk from a theoretical level,analyzes the theoretical possibility of expansion and financial risk balance,and designs strategies.The balanced evaluation system of expansion and financial risk analyzes how companies make scientific decisions.Through case studies,theory and practice are combined to support the consistency of the theory of checks and balances and the situation of the enterprise,and to analyze the causes of the imbalance between La Chapelle’s strategic expansion and financial risks,and put forward development suggestions.Aiming at the research problem,the research conclusions drawn in this paper are:(1)The environmental threats and corporate disadvantages in the expansion process of La Chapelle are highlighted,and there are problems in the implementation of expansion strategies.(2)During the implementation of the expansion strategy,the company’s financial quality and risk status are getting worse.Strategic expansion increases the company’s financial risk through the capital movement link.The cumulative outbreak of financial risk prevents the company’s strategic expansion from continuing.There is a balance between financial risks.(3)Through the design and application of the expansion and risk financial balance evaluation system,it was found that around 2016 is the critical point where La Chapelle’s expansion and risk are in an imbalanced state.High-speed expansion is no longer suitable for enterprise development.However,due to managers,capital,etc.The reason was not timely strategic adjustments,nor effective measures to control financial risks,and ultimately fell into the dilemma of expansion.The research innovation of this paper lies in(1)through theoretical research on expansion and financial risk,it is possible to find that there is a theoretical restriction on strategic expansion and financial risk,and then analyzes the case of La Chapelle from the perspective of the strategy implementation process,and obtains consistent with the theoretical analysis The conclusion is theoretically complementary to the relationship between strategic expansion and financial risk.(2)The analysis of the expansion and risk imbalance of La Chapelle helps companies find the time point of imbalance and the cause of expansion and risk imbalance,and puts forward development suggestions for the company;(3)warns other companies that are undergoing strategic expansion and pay attention to the environment Change,attach importance to corporate financial risk control and early warning,and establish a financial balance evaluation system,actively adjust corporate strategic planning,correctly weigh the risks and benefits of expansion,avoid situations similar to La Chapelle,and achieve long-term sustainable growth of company value. |
