A Study Of Enterprises Financial Investment Strategy

Through the development of reforming for more than 20 years, our country's overall economy has been improved greatly. In 2006, Chinese economy output is more than 20 trillion yuan for the fist time, ranking fourth in the world. According to the World Bank's data, China's GDP is expected to catch up with and surpass the United States in the middle of this century, and China may become the world's No.1. Our country's overall level of economic development is enhancing, and the market economy system is also gradually improving. Enterprises as important participants in the market economy have made a tremendous contribution for our country's economy development and progress; also, enterprises are trained to withstand the market, and their competitiveness has been greatly improved.But at the same time, we should also find the tremendous difficulties which our enterprises how to development in future. One hand, the enterprises have many problems, such as unscientific management, weak core technique power, and lack of effective competition methods on the marketing. On the other hand, the external reason such as more and more fury market competition, and smaller and smaller living space. Particularly, after joining into the WTO, many international industrial magnates participate in the Chinese market competition, which makes the domestic market competition more brutal. Faced with such fierce competition in the market environment, enterprises only through initiatively and actively participating in market competition can win their own piece of habitat. For individual enterprises, they can not change the external economic environment, but to adapt it. Only enhancing competitiveness they can win.The ability and advantage of enterprises to compete in the market relies on their investments in the actual business with the tangible and intangible resources. It is believed that the overall competitive ability of enterprises in the market is based on internal resources and capacity, such as high competitive staffs, outstanding ability in organization and coordination, high efficient enterprise information systems, excellent customer relationship management and so forth. In today's high competitive market and environment, how can we ensure our financial investment to be able to obtain tangible competition? Especially those long-term, strategic investments are more difficult. So the importance of enterprise financial investment strategy with the changes in the competitive environment has attracted scholars'and practitioners'attention. And it is now particularly urgent and important to strengthen the domestic enterprise financial investment research.At present, China's financial theoretical researches are limited to traditional methods of financial management and financial theory expansion, and studies of the financial strategy are not in depth. Only part of the strategic management thoughts have been introduced in traditional financial theory. At present, finance and strategic theory are still difficult to work together well. In addition, the general financial strategies include finance strategy, financial investment strategy and financial distribution strategy .But I think that the financial investment strategy is the core of the financial strategy. Enterprises have to rely on the investments to acquire resources and capacity. Many enterprises are also in the face of difficulties in the actual operation of making an accurately strategic investment decision.This thesis is to find a viable financial investment strategy way to meet the overall enterprise strategy through researching on financial investment strategy, to find an effective way of investment in order to gain a competitive advantage in today's global market through sustaining investment to obtain sustaining competitive advantage in the market, and finally achieves the enterprise's long-term shareholder value maximization. I believe that the financial investment strategy for enterprises will be able to improve the development of our country's enterprises.This paper's main content and structure are as following:The first part describes the theory of sustainable competitive advantage. Sustaining enterprise competitive advantage theory plays a supporting role in this research's focus: strategic financial investment. Firstly, carries on a detailed description and analysis on the theory of sustainable competitive advantage. Then it describes the immanent connection between several theories. Finally proposes the competitive advantage logical diagram which synthesizes all theories. The second part discusses the financial investment strategy theory. It describes the concept, feature, gross target, essential requirement and emphasis of the financial strategy, and on that basis, expounding the point of view that financial investment strategy is the core of enterprises'financial strategy. Then, expounding the basic analytical frame of financial investment strategy which has basic leading and restricting impact to all aspects of enterprises'financial investment. Moreover, on the basis of citing the PWC financial management group's, enterprise shareholder value growth factor model, locates the financial investment strategy to investments which can get and enhance the continuous competition superiority of enterprises to impulse the growth of enterprise shareholder value and achieve the long-term shareholder value maximum goal. At last, establishes a basic analytical model of financial investment strategy to achieve the goals accounting in front.The third part focuses on the issue of the applying of financial investment strategy on the basis of the first two parts. This part exerts the strategy procedure demarcate model (Professor Kaplan, the USA), decomposes the enterprises financial investment strategy into"three basic capital"and"four important procedures"investments, discusses them respectively. Then, it establishes an enterprise synthetic financial investment strategic diagram on the basis of competition superiority combination with enterprises continuous competition superiority fountain logic chart, which finalizes the continuous competition superiority theory to enterprises specific strategic procedure investment.The fourth part as the last part does a case research of the Haier group on the basis of the enterprises synthetic financial investment strategy chart established in the third part.The contribution of this thesis includes the followings:1. Constructing an all-round headspring logic diagram of sustaining enterprise competitive advantage. Although there are so many discussions of sustaining enterprise competitive advantage, we can find no summarizations on those discussions, and we can not find literatures on the relationship of those discussions. The key study of the thesis based on sustaining enterprise competitive advantage including: the role that the financial investment strategy plays on in the filed of strategy theory, which is the basic of enterprise financial strategy. So the thesis expatiates and concludes the sustaining enterprise competitive advantage, and advances the all-round headspring logic diagram of sustaining enterprise competitive advantage.2. Advancing an opinion that financial investment strategy is the core of financial strategy. Commonly, the financial strategy consists of finance strategy, financial investment strategy and financial distribution strategy. Through the analysis of the thesis, it advances that financial investment is the key part of financial strategy, and the growing of enterprise stockholder value should be founded on the good financial investment strategy.3. The thesis constructs a basic analysis model of financial investment. The model is to direct the analysis of financial investment strategy. The thesis disassembles the enterprise financial investment strategy into"three basic capital"investment and"four important flow"investment, and based on which it uses the basic financial investment analysis to analyses enterprise financial investment strategy flow. On a certain extent, the method can be put into practice.