Expansion Strategy,financial Policy And Corporate Performance

As far as the growth of an enterprise is concerned,the expansion strategy is almost an inevitable stage for the enterprise,especially in the stage of start-up and high-speed development of the enterprise,the extension of expansion is always the only choice.No matter what form of expansion strategy,it needs the support and cooperation of the company’s financial policy.Through appropriate investment,enterprises strengthen their own strength so that expansion strategies can proceed smoothly.Expansion strategies and corresponding investments require appropriate financing policies(including dividend policies)to achieve strategic synergy goals.The effect of strategic synergy is ultimately reflected in the realization of corporate goals.Therefore,whether the expansion strategy and financial policy are coordinated and effective depends on the degree to which the company ’s goals are achieved.Therefore,research on the issues of expansion strategy,financial policy and corporate performance is not only of theoretical significance,but also of greater practical significance.As a format of the retail industry,supermarkets have been greatly developed in the process of reform and opening up.From the perspective of the development process of China’s supermarket companies,in addition to supermarket companies directly invested by foreign capital,China’s local supermarket companies have experienced or are undergoing an expansion phase.Supermarket companies have used different operating and financial policies in the implementation of their expansion strategies.Among many domestic supermarket companies,Yonghui Supermarket,which started with the "agricultural reform",emerged in fierce competition.This article takes Yonghui Supermarket as a case enterprise,and analyzes the impact of Yonghui Supermarket’s expansion strategy and financial policy cooperation on corporate performance using literature analysis,case study methods and quantitative analysis.First,this article describes the corporate objectives and strategic management theory,financial policy theory,and corporate performance management theory,and theoretically analyzes the feasibility of the coordination between expansion strategy and financial policy to affect corporate performance;followed by the expansion strategy and financial policy,Research literature on the relationship between expansion strategy and corporate performance,financial policy and corporate performance,and understand how scholars have studied the relationship between them.Secondly,this article briefly describes the basic situation,development process and operation status of Yonghui Supermarket to understand the history and current status of Yonghui Supermarket.Thirdly,this article studies the expansion motives of Yonghui Supermarket,divides its expansion strategy into three stages,and studies the characteristics,landmark events and achievements of each stage’s expansion strategy,respectively.Analyze the policy and explore the strategic financial policies and strategic financial policies adopted at each stage.Finally,this paper evaluates Yonghui from a non-financial perspective of employees,market share,marketing capabilities,financial scale of enterprise size,profitability,growth capacity,financial risk,management efficiency,and market value and intrinsic value from the perspective of enterprise value.The influence of Hui supermarket’s expansion strategy and financial policy cooperation on corporate performance,at the same time,summarized the impact,and also selected Zhongbai Group in the industry as a comparison to observe where Yonghui supermarket is in the industry.The research found that the extensional expansion strategy is a necessary strategy for the initial and rapid development stage of the enterprise,but when it reaches a certain stage,it must turn to intrinsic development;as an overall strategy,the expansion strategy requires corresponding financial policy coordination;Policy coordination does not necessarily bring about improvements in all dimensions of corporate performance.Therefore,in order to give full play to the strategic synergies,in addition to the coordination and coordination of specific functional strategies including financial strategies,companies need to pay attention to: from timely expansion to connotative development and improve financial The degree of coordination between functional strategies such as policies and expansion strategies,and no matter what strategy should focus on corporate value creation.