Study On Enterprise's Financial Strategy Based On Value Chain

The economy environment is full of uncertainty and difficult to forecast with the gradually market-oriented reformation. Not only scientific and meticulous administration is needed, but also needs a wide vision of strategic sight and thinking to found and improve enterprises. Modern enterprises are more and more aware of the importance of strategy, and pay great attention on strategic management practice in enterprise management. In relation to this adaptation, enterprise financial strategy management focused on future shows strong vitality, and financial strategy also received an unprecedented attention of financial academics and entrepreneurs. However, with the economic globalization and the rapid development of a knowledge-based economy today, the basically theory of economic dynamics and the guidelines that people observe have changed greatly, and the financial management's objective is mostly changed from traditionally maximizing corporate profits to maximizing the value of enterprise. So the financial strategy should be focused on the study of value, and combine strategy management, tactical management, value chain management and information management together organically, and pay attention on value and its activities, and focus its management target on every section of the value chain. The introduction of the value chain management proposed by Michael Porter to financial management has great insignificance, on the one hand, the study provides a new concept to the research of financial management; on the other hand, it provides an effective tool to financial management in analysis and decision-making. So the new concept is bound to have a positive impact on enterprise financial management and promote the development of a new financial management model. The value chain based financial strategy for enterprise is the core of the new financial pattern. It is under the guidance of management theory, and its goal is to create value for customers and maintain the market competitive of enterprise. And this strategy is made in the organization of financial activities and financial relations of value chain enterprises to establish overall situation, orientation, long-term and significance financial policies, principles and development planning. On the research of business competition in traditional financial strategy, we are often confined to the internal management and the external environment of each enterprise, and emphasize on raising capital, investment and other issues of each enterprise. However, we pay less attention on the research of financial activities and relationship in value chain enterprise group under the competitive environment. Under the guidance of enterprise financial strategy based on value chain theory, and by creating new procedures and methods by using of value chain management, this paper does research on enterprise financial strategy from the aspects of systematic and dynamic development, and tries to build a new financial strategy system which fits for the development of corporation in the 21st century. As a result, it will do great help to build up the core competence of enterprises, and improve the modern financial strategy theory and methods system.This paper consists of five parts, and the main contents are described as follows:Part One: Introduction. This part reviews the internal and external researching conditions on the value chain, and points out the deficiency of present research. Then it indicates the meaning and purpose of this research, and illustrates the researching method, the main thought and new ideas in this article. Part Two: Basic theory of enterprise financial strategy. The first part reviews traditional basic theory of enterprise financial strategy. Then it analyses the close link between value chain and enterprise financial strategies, and finds out the effect of the theory on financial management. Moreover, it is necessary for us to design a new financial management pattern which is based on the value chain through combining the two theories together. Finally, this part introduces the main contents in this article is the financial strategy based on value chain. At the same time, it explains some basic financial strategy theories, such as the definition, characteristic, inner and outer value chain based financial strategy for enterprise and so on. As a result, the financial strategies provide a solid foundation for this paper.Part Three: The outer value chain based financial strategy for enterprise. The creativity of value chain in enterprises is the core in this part. As the choice of cooperate fellows is the key to build value chain and manage value chain, we should establish financial strategies based on the strategy in order to combine value chain's resource and power, and ensure of raising value chain capital, coordinating operations and sharing of benefits.Part Four: The inner value chain based financial strategy for enterprise. Based on the enterprise financial strategy which is the corn of value chain, this part explains how to establish financial strategy through raising capital, investing and incomes distribution to take advantage of financial resource and power, and enhance corn competence of the enterprise.Part Five: The content carries on the summary to this article in front and points out the research conclusion.