The Selection Of Financial Strategy Based On Corporate Life Cycles

Financial strategy is a very important part of corporate strategy. It serves for the corporate strategy on one hand, and is relatively independent on the other hand. The main purposes of financial strategy is to control the general corporate risks and achieves sustainable competitive advantage, and keep development for a long time through the selection of financial strategy. Based on the theory of corporate life cycles, we can use several cases to explain the different financial strategies in the different corporate stages. All analysis can help the enterprises to select their financial strategies. Also it can enrich the theory of financial strategy.In this article, we study and analyze the management of the financial strategy systematically through the research of all the theories about the financial strategy. Mainly we use two cases to explain the conclusions. The paper is divided into five parts as follows:The first chapter: introduction. We introduce the research backgrounds of the paper and bring forward the issues we will study on. Then we will research the issues residing in the management of corporate financial strategy.The second chapter: the theoretical analysis on financial strategy. Firstly, we will analyze Chinese and foreign articles about corporate life cycles and financial strategies. Secondly, we introduce the theoretical knowledge of financial strategy, for example, the definition, function and the elements of financial strategy. The financial strategy mainly consists of 3 parts: financing strategy, investment strategy and profit allocation strategy.The third chapter:the method of research. In this part, we introduce the backgrounds of Hisense and Mengniu. Then we explain the method and procedure of the research. Lastly, we can get the method of division the different stages of corporate development. All is served for the next chapter.The forth chapter: the selection of financial strategy based on corporate life cycles. This part is very important. The corporate life cycle mainly consists of 4 phases: starting, developing, maturity and transferring. In different stage, enterprise has different...