The Study Of Financial Strategy Based On Enterprise's Lifecycle

Financial strategy means to reach the target of enterprise value maximization through choosing the best way of financial resource configuration. It is nearly impossible for financial strategy to convert operation disaster to big success, but it can enhance the long-lasting possibility for enterprises. In the real business activities, as a part of overall development strategy of enterprise, financial strategy is not only formulated but implemented thoroughly. The formulation of financial strategy is enslaved to company strategy as the core strategy and it is decided by the intrinsic logic of strategy management itself. Therefore, the thesis will study the financial strategy based on enterprise's lifecycle specially and be of theoretical guidance and practical value to listed company of china.The paper constitutes of three parts. The first part introduces enterprise's lifecycle theory, financial strategy theory and financial strategy theory based on lifecycle from the angle of theory; the second part states the financial strategy choice in different periods of the business start-up, growing, maturity and recession four stages. It analyzes and compares the characteristics presented in different phases through business risk, financial characteristic and strategy choice and so on, and expounds the characteristic, the role and significance of financial strategy in different periods in details; the last part makes Baoshan Iron& Steel Co.Ltd .as a typical case for further study and analysis of financial strategy on a base of enterprise's lifecycle. It shows the great significance of adjusting enterprise's financial behavior from the point of strategy on the track of enterprise's lifecycle through lifecycle analysis, financial strategy analysis and appraisal. Financial strategy should adapt to circumstance continuously and assure the sustainable development and competitive advantage for the strategic aim.