Research On Financial Elasticity In The Process Of Hemei Group's Business Strategy Transformation

In the process of development,enterprises generally face the problem of financing difficulty,and the financial risks caused by financing are more and more hidden and diversified.In order to make an effective response to the complex and changeable environment,enterprise managers should consider maintaining sufficient and reasonable financial flexibility.Many research results at home and abroad have shown that maintaining financial flexibility is crucial to payment policy,enterprise investment,enterprise value and capital structure;however,there are two sides to everything,and maintaining financial flexibility also needs to pay the corresponding costs to enterprises,such as cash opportunity cost,lost tax shield effect,enterprise capital market reputation reduction,etc.(Denis,2011).Therefore,what level of financial flexibility should an enterprise maintain in its development is a very important issue,which is also an area that has not been studied in the existing literature.The business strategy implemented by the enterprise is the future development direction of the enterprise,which determines the scale direction of investment and the demand for financing.Therefore,it should have a close symbiotic effect and influence with the financial flexibility of the enterprise.The financial flexibility of the enterprise should be incorporated into the overall business strategy of the company,matching with the business development strategy.Based on the review of domestic and foreign literature,this paper studies the development behavior,existing risks and the value of financial flexibility of different types of business strategies.Through the method of case study,taking Hemei group as an example,this paper analyzes the changes of financial flexibility level of case enterprises in different stages of business strategy development from quantitative and qualitative aspects.Through the research,it is found that financial flexibility decision-making and business strategy are inseparable,and they complement each other.On the one hand,the implementation of business strategy needs the support of financial flexibility,and different types of business strategies need different levels of financial flexibility;on the other hand,the implementation of business strategy will also affect the level of financial flexibility of enterprises.On the basis of this conclusion,the paper further analyzes the influencing factors of the deterioration of Hemei group's financial flexibility,which are not only affected by the strategic transformation,but also affected by equity pledge and market environment.Finally,the paper gives some suggestions for the enterprises with different business strategies and the enterprises with business strategy transformation,and suggests how to better match the business strategy and financial flexibility in the business process.