Research On Financial Strategy Development Methods Based On The Execution

This paper takes finance Execution and Financial Strategy Development Methods (FSDM) as the research subject and mainly focuses on the analysis of the current research progress, the component elements and the research models of Financial Strategy Development Methods by generalization and comparison from the perspective of corporate finance. Through the extensive and thorough analysis, it is concluded that the analysis and research of Execution in the Financial Strategy Development Methods and Modeling Establishment is both essential in theory and far-reaching in practice.After the analysis of the current research progress of FSDM, it is found that there is not a highly sound research on FSDM home and abroad. Firstly, most researches concentrate their subject on Business Strategy Development Methods rather than Financial Strategy Development Methods. In addition, as for FSDM, there is the absence of a comprehensive and systematic methodology. At last, the effective models for FSDM have not yet been established.This paper first investigates the reasons for the failure of Financial Strategy by comparison and contrasts. Then it centers on the analysis of the correlation between Execution and Business & Financial Strategy from the angle of financial strategy process, operation process, personnel process and the execution culture, laying a theoretical foundation for FSDM on the basis of Execution. Furthermore, the paper conducts the quantitative analysis of the component elements of FSDM and the composition of these elements on the basis of Execution, holding that business strategy, financial strategy objectives, enterprises life cycle, financial fields, and financial strategy execution comprise all the elements of FSDM, and stating that financial strategy consensus, financial strategy collaboration, and financial strategy control compose the Evaluation Index System of Financial Strategy Execution. Next, it analyzes the process and methods to develop the financial strategy and utilizes PESTEL, SWOT and flowchart to establish the analysis process and methods for each component element, eventually generating the models for FSDM- Five Factors Model. In addition, this paper turns its attention to the analysis of the mechanism of the model and the interrelation between five factors involved as well as the demonstration of the rationality of the model. At last, it adopts the established models and methods to analyze the case about Nokia's financial strategy in China. Finally, the analysis result convincingly confirms that the method and model discussed in the paper is not only easily-operated but also effective.