The Study On Financial Strategy Management Of Nanjing Port Group Co.

FSM (short for Financial Strategy Management) is a part of the domain for research on modern enterprises' financial management, which have its own objectivity and necessity to develop. Now FSM still have not been attached much importance to and studied deeply. Most enterprises usually limit their research to the measures of financial management. But with the ceaseless change of enterprises' financial environment, it will be paid more and more attention to strength the studying on FSM and to put it into practice.Port is an industry of high risk with slow return. Owing to the industry characters and the long period protection of the domestic planned economic. Port Industry will be affected by the entry to WTO heavily. The gap to the international superior shipping companies is tremendously deep which lies in the following aspects: the small capital scale, the weak capability of withstanding risk because of the narrow business scope, and the unreasonable structure and high cost in raising capital deriving from the imperfect capital market, etc. After the entry to WTO, the situation of our domestic port industry is very difficult. Under this circumstance, it's very essential to manage the businesses and draw up the operating strategy, especially financial strategy beforehand according to the international standard. It is a new field to put the theory of FSM into modern port management. I choose Nanjing Port Group Co. as the concrete subject, managing to take a new shot.First, I endeavored to summarize FSM and compare between the invest-loaning systems of some ports (both oversea and domestic), which gives us many references. Then, I analyzed the financial environment and operating strategy of Nanjing Port Group Co., which forms the basic of later research. Finally, I used the method, which combine management and economics, strategic management and financial management, and put forth the whole point of FSM in accordance with it's industry traits.Conclusions could be drawn out through a positive analysis of some portcompanies:The factors that have a positive effect on the strategic target are the rate of main business return, the velocity of the assets, while the capital structure and the rate of the increase of the Increase of investment have little effect, Which illuminate that the port company should focus on the main business to enhance the return of net assets, it also shows that the business of the list port companies is over-concentrated, and should be diversified to lessen the operating risk ; the companies should accelerates the turnover speed of the assets ; the appropriate structure of the assets can bring benefit to a company, but the ultimate approach to enhance the return of the net assets is to look for items with high return ; the sightless investment made the increasing speed of return lag behind the expanding speed of the capital ; and result in no scale economic benefit.The second point in the article is to give Nanjing Port Group Co. some advice how to implement FSM, value its performances and adjust its strategy.The entrance of WTO brings opportunities as well as challenges. The Nanjing Port Group Co. should apply the theory and methodology of strategic financial management into the financial activities. The decision-maker should grasp the emphases, and make a definite object in making strategy.