Research On Financial Strategy Of Real Estate Enterprises Based On Agent Construction Model

Chinese real estate industry has already passed the course of winds and rains over35years since reform and open to the outside world. The development of wholeindustry advanced by leaps and bounds by the new century. However, the entire marketenters the mature stage; division of labor based on specialization gradually appears.With the purchase of credit limit, tax policy and other macro-control measures adoptedthe original business model of Borrow money-Take the threshold-Development andconstruction-Selling constrained growth. At the same time, the situation with ordersand sales becomes more severe, the financial risk is high and many businesses arefacing financial strain. Many new business model3appear in this context. One of themis agent-construction model, by which corporations transform into professionaldeveloper,. They put the emphases on the developing and selling, creating more valueby exporting brand, technology, channel and so on. The innovation of business modelis the basic guarantee to gain extended competitive edge. It is also a good way to solvedebt crisis. It still further lay foundations to adjust financial strategy.Scholars of the world argue a lot about the relation with business models andfinancial strategy. This article adopts the one program which gets general approval andforms own research framework. The business model is a strategic tool, which willdetermine financial strategy. Difference business models effect the arrangement offinancial strategy. The suitable choice conversely affects the development of businessmodels. So it is mo essential that financial strategy promotes the persistent working ofbusiness models.This article discusses the whole frame of financial strategy and theconcrete implementation plans.So, how do real estate enterprises arrange the financial strategy in agentconstruction model? This article chooses the case which first use agent constructionmodel and gains original success. This case is Green Town. We introduce the case bydescribe the background, the basic information, the competitive advantage and the event of crisis about Green Town. The major analysis tool is SWOT analysis tool. Wediscuss the case by3parts. The first part is the whole analyze of financial strategy. Thesecond part is the concrete decision of financial strategy, which is divided into severalparts of financing strategy, investment strategy, dividend distribution strategy andcapital operation strategy. As well we discuss the concrete implementation plan bycombining business activity. In the end of the article we summarize the successfulexperience and supply constructive advices for other real estate enterprises.