Research On Optimization Of J Company’s Financial Strategy

In recent years,with the rapid development of society and economy,the environment of modern enterprises is more and more unpredictable,and the financial strategic management system is more and more valued by enterprises.In 2000,American scholar Cabriel Hawawini proposed to combine economic value added with sustainable growth theory to construct the vertical and horizontal axes of financial strategy matrix creatively.Although this theory was put forward for a short time,it has entered the scholars’ field of vision gradually due to its unique and novel perspective,and has developed rapidly in recent years.With the development of China’s economy and under the background of economic globalization,the small appliance industry has also win the opportunity to flourish.The small appliance industry changes from the former manufacturing enterprises to the "technology manufacturing" enterprises which set design,R & D,production and sales in one now.In this paper,J Company is selected as the research object of small appliances industry.This paper will optimize the financial strategy of Company J through the analysis of the relevant financial data of Company J from 2015 to 2019,combined with the internal and external environment of the company,according to the financial strategy matrix theory and enterprise life cycle theory.Firstly,the paper introduces the financing,investment and dividend distribution strategy of J Company in detail and puts forward the existing problems of the financial strategy through the comprehensive analysis of external and internal environment,combined with the implementation of J Company’s financial strategy.There are some problems in Company J rencently,such as long-term and short-term debt structure imbalance,the imbalance of domestic and foreign investment structure,the investment direction is not fully guided by the overall strategy,and dividend distribution does not fully consider the enterprise operating conditions.Secondly,in order to solve these problems,this paper takes the life cycle theory and financial strategy matrix as the main basis for optimization,defines the objectives and principles of optimization,and chooses the expansion financial strategy.In the aspect of investment strategy,we should expand the scale of external investment and implement the integrated investment strategy.At the same time,internal investment should be increased in setting up subsidiaries,building or improving production lines,invest in offline retail channels and increase investment in research and development.In terms of financing strategy,the paper puts forward some schemes,such as giving priority to internal financing,increasing equity financing,adjusting debt structure and increasing long-term borrowing.Dividend distribution strategy puts forward the use of residual dividend policy and selection of stock dividend payment methods timely.Finally,the paper puts forward the measures to ensure the implementation of J Company’s financial strategy.Based on the research of domestic and foreign scholars,this paper expands the application of financial strategy matrix and life cycle theory while helping enterprises solve practical problems,and also hopes to provide some reference for enterprises which is facing similar problems in the same industry.