The Research On Financial Strategy Of AC Architectural Coatings Company

The theory of the enterprise strategic management has been widely used in large and medium-sized enterprises in China.With the progress and development of the theory of strategic management,domestic enterprise begun to pay more attention to study the financial strategy,which is a branch of enterprise strategic management.Financial strategy as a science to study the issues related to the enterprise investment,financing,daily operation and the process of profit distribution.It is of great significance to provide support and guarantee for the realization of the enterprise strategic through the study and take an analysis of the financial environment of enterprises in different development periods,and allocate enterprise resources,especially capital resources.As one of the listed architectural coating companies in the traditional domestic manufacturing industry,AC architectural coatings company(AC Company)is in a period of rapid development.The development of AC company is closely related to the development of the real estate industry because of its industry characteristics.As the domestic economy enters into a new normal,and the real estate industry is integrated and concentrate immediately,architectural coatings companies have also begun to transform from a traditional distribution model to a Strategic cooperation mode with real estate developers directly.At the same time,due to the accelerating process of homogenization of coating products and fierce price competition,in addition to the launch of the national environmental protection policy,it requires the architectural coating companies to begin to environmental technology transformation.Therefore,under the new economic normal,it is particularly important for AC company to choose a financial strategy suitable for its own development in the face of changes in the environment and competition from many parties,and to maintain the goal of company’s sustained and rapid growth.This paper takes AC Company as an example for case analysis,On the basis of the financial strategy theory,this paper makes a systematic research and analysis on the internal and external environment of AC company,current financial position,investment,financing,daily operation and profit distribution to find out the existing problems or deficiencies of the current financial strategy.Because of a lack of strategic management and control organization,the project investment is delayed and the investment mode is single.The debt financing accounts for a large proportion.Accounts receivable and inventory management is poor.Cash dividend distribution aggravates cash flow.And gave corresponding suggestions to enable AC company to further improve its financial strategy such as improving the efficiency of daily capital operation,reducing the payment ratio of cash dividends to reduce the cash outflow,etc.At the same time,through the analysis of AC company’s financial strategy,it can also provide a reference and practical case for the development of small and mediumsized companies in the architectural coatings industry when they encounter similar financial strategy-related issues.