Research On Financial Strategy In Aluminum Smelting Enterprises

Along with rapid development of information technology, global economic integration is increasing rapidly. Competition between enterprises evolves from traditional product competition and price competition to competition of enterprise's comprehensive ability, especially sustainable development ability. Whether an enterprise has a long-term core competitiveness is a critical factor for realization of sustainable development. Enterprise's management ability, especially strategy management ability, has become a critical factor to decide enterprise's success and failure.Financial strategy is an essential part of enterprise's strategy, aim to cultivate and develop enterprise's core competitiveness, so as to ensure enterprise's long-term sustainable development and maximum benefit of enterprise's related parties. Financial strategy is to enhance enterprise's adaptability to environmental change through cultivation and allocation of enterprise's financial resources, so as to make a long-term planning for cultivating enterprise's core financial competitiveness and ensure its execution.Aluminum is a kind of important basic raw material, widely used in every field of national economy, and it occupies an important position in national economic system. Therefore, healthy development of aluminum industry plays an extremely significant role in ensuring long-term stable development of national economy of China. Compared with worldwide advanced aluminum industry, China's aluminum smelting enterprises have some weaknesses, such as small scale, low resource guarantee degree, incomplete industrial chain structure, lacking of advanced aluminum material processing technology, low financing ability, lacking of flexible capital structure, etc. therefore, studying internal and external environments of China's aluminum smelting enterprises and building up sustainable development strategy for China's aluminum smelting enterprises and applicable financial strategy would play an extremely significant role in those enterprises'participations in international competitions and realization of sustainable development.On the basis of systemic analysis on internal and external environments of China's aluminum smelting enterprises, this article carries out a systemic study on financial strategy of China's aluminum smelting enterprises by applying the state-of-the-art theories of management science and economics, and by using successful experience of worldwide advanced enterprise for reference. Major contents and findings of the study are as follows:(1) Analysis on financial strategy management environment of China's aluminum smelting enterprises. It is pointed out that internal and external environments of China's aluminum smelting enterprises have provided very good chances for long-term development of China's aluminum smelting enterprises.(2) Orientation of strategic goal for development of China's aluminum smelting enterprises. Through analysis on SWOT, China's aluminum smelting enterprises shall adopt development strategy with horizontal combination and longitudinal integration, and develop upstream resource integration preferably, meanwhile, develop state-of-the-art aluminum material processing technology and productive capacity.(3)Selection and guarantee system of financial strategy of China's aluminum smelting enterprises. This study focuses on investment strategy, financial strategy, cost strategy and risk control strategy, brings forward that talent strategy and financial information strategy are two guarantees for the smooth execution of enterprise's financial strategy.(4) Execution of financial strategy. By virtue of strategic budget (an advanced strategic management tool) and Balance Score Card, this study breaks down strategic goal into quantitative and qualitative financial budget index system and non-financial budget index. This study closely combines strategic action scheme and budget, and brings forward detailed reference index system according to features of aluminum smelting enterprises.Innovation points of this paper: on the basis of traditional financial strategy management theory, according to core competitiveness theory and sustainable development theory, this article is to build up a financial strategy theory, aiming to acquire and keep long-term core competitiveness, and widen connotation of financial strategy management. This article points out that: besides capital running, financial strategy management shall also include financial information, all kinds of financial relations between an enterprise and related parties, and financial professionals owned by enterprises. On this theoretical foundation, this article carries out a systemic analysis on characteristics of internal and external environments of aluminum smelting enterprises, and then takes the lead in bringing forward development strategy of China's aluminum smelting enterprises and applicable financial strategy by using successful experience of worldwide advanced enterprises for reference. In addition, in terms of execution of financial strategy, by virtue of strategic budget (an advanced strategic management tool) and Balance Score Card, this study breaks down strategic goal into quantitative and qualitative financial budget index system and non-financial budget index. This study closely combines strategic action scheme and budget, and brings forward detailed reference index system according to features of aluminum smelting enterprises.Financial strategy and its management ability and level are comprehensive embodiments of abilities of enterprise. Only perfect financial system and financial strategy suitable for enterprise's feature can realize enterprise's development strategy smoothly. Through study in this article, it is expected to provide important theory basis for effective financial strategy management of China's aluminum smelting enterprises.