Discovery The Application Of Financial Strategy Matrix

In the times of value management, strategic thinking plays an important role in the enterprises's business activities. The financial strategy emphasizes that the company policy must meet the need for the stages of development and expectations of stakeholders. In 1993,Stern Stewart consulting firm brought up the performance evaluation index of Eva firstly,and on the basis of which Hawawini proposed the idea of Financial Strategy Matrix in 2000. As the theory is new,scholars have yet to focus on it,and the empirical research is rare.Following the guidance of the financial strategic thinking ,this article tries to do some empirical analysis with the financial strategy matrix. The artical aimed at testing the theory in practice management. And theFinancial Strategy Matrix was hoped to be applied flexibly as an effective analytical tool . This article collected financial data of biological products industry from the year of 2006 to 2009. 21 listed companies were divided by the development state. The results show that most companies of the biological products industry are shortage of funds, while the enterprises whose funds are surplus accounted for only 10%. From the perspective of creating value, 45% of the enterprises are value-added, while the others which are reducing economic value accounted for 55% .The classification experiments shows that the financial strategy matrix theory is reasonable on the classification of enterprises.The analysis of financial measures to the three listed companies can be proved that the theory of strategic is applicable in practice management. And the FinancialStrategy Matrix can be used as an effective analytical tool in management.The main text is divided into four parts: The first part is an introduction which includes the background ,significance of the research,relevant theoretical basis,content and innovation. The second part is theoretical analysis which describes the content of the financial strategy matrix theory and the advantages. The third part of the article is empirical analysis,which is targeted at biological products industry to test the feasibility of the financial strategic matrix theory and also get some industry conclusions. The fourth part is summing up the research results and problems.The innovation of the artical is as follows:①The writer made some exploratory researches on application of the Financial Strategy Matrix which is an innovation for the theory just at the initial stage.②In this paper, bio-products industry was used as the object of the research to analyze the development state of enterprises in the industry. This is an useful reference to research the other industries.③This artical selected enterprises of different development studies,and compared the financial strategy matrix theory with the practice of financial measures. It provided methodological reference in testing the application of theory in practice .