The Implementation Effect Of Conservative Financial Strategy Of Enterprise Research Based On Hisense Electric

Financial strategy refers to the comprehensive, long-term and creative strategic plans for the flow of funds of the enterprises that enable them to achieve liquidity balance effectively, enhance the financial competitiveness basing on the analysis on the influence of internal and external environmental factors on the flow of funds. According to the different financial structure, enterprise financial strategy can be classified into expansionary, conservative and tightening. Among them, conservative financial strategy is generally perform as those that aims to stable the growth of certain investment, an enterprise will reserve a portion of the profits at a fixed period and combine the external financing and internal profit together. Because the current debt crisis triggered by the financial crisis has not yet fully receded, the enterprise still faces many uncertain risks, enterprise financial strategy is not only difficult to play its real value, but to restrict the development of enterprises. Therefore, how to select an effective financial strategy and successfully put it into well-functioned to help the enterprises developing towards a sound way has became a key focus theoretically and practically.As a typical "conservative financial strategies" enterprise in China’s household electrical appliance industry, Hisense Electric still maintained a healthy development in the financial crisis. Therefore, this Paper selects Hisense Electric as a case study to analysis and discuss the financial strategy in order to provide some reference for other enterprises. Based on this, the Paper firstly reviews the domestic and foreign theoretical research on the financial strategy and conservative financial strategy and takes Hisense as a case study to puts forward the related theoretical basis. On this basis, it gives in-depth analysis the causes to Hisense’s choice on its financial strategy. As conclusion, this Paper introduces the balanced scorecard implementation effect brought about by the thought of financial strategy evaluation; finally, this paper summarizes the experience and shortage Hisense Electric in the using of financial strategy and proposes relevant suggestions, hoping to provide certain reference to the development of other enterprises in china.This Paper draws the following conclusion through the study of Hisense Electric conservative financial strategy:first, Hisense Electric is able to meet its financing requirement during its development so that to push forward the implementation of the company’s overall strategy due to the choice of a financial strategy that the whole enterprise is willing to cooperate with. Secondly, the implementation of a conservative investment strategy enables the company to produce and sales in a scale rapidly. The financing strategy is serving its investment strategy by guaranteeing the sustainable and profitable investment and then ensures the health of their capital structure by reducing the financial risk. Finally, the implementation of conservative financial strategy is reducing the level of corporate debt, improving the capital turnover rate, so that the company can have more flexibility in the use of funds and increase income more effectively. We also obtain the Enlightenment:the overall strategy of the enterprise must rely on financial strategy. The formulation of the financial strategy must be adapted to the current business environment. Financing strategy serves the investment strategy. Investment strategy must meet the company’s overall strategy. An overall strategy is closely link to the nation’s economic situation.