Research On Financial Strategy In Engineering Machinery Industry

With the changing enterprise operating environment,enterprise financial management activities are increasingly expanding. The new financial management issues emerge in endlessly,so are the risks. Major financial decisions are more and more important to enterprise’s survival and development. To implement strategic management, the enterprise necessarily requires financial management with strategic thinking.Financial strategy is a corporate plan to improve the enterprise core financial competitiveness.The plan can ensure enterprise long-term stable development and profit maximization.In order to determine the core competitive ability,corporations need to analyze the internal and external environment. Corporations also need to enhance the enterprise’s flexibility and strain capacity to achieve the optimal allocation of resources.Engineering machinery is affiliated to the the special equipment manufacturing industry in our country, the important driving force in the construction of infrastructure and the important guarantee of high efficiency, high quality and low cost in modernization construction. Recently, however, due to the global economic downturn, the problems existing in the development of construction machinery industry are gradually exposed and to be solved.Sany heavy industry is engaged in the engineering machinery. Now Sany is China’s first, the world’s fifth construction machinery manufacturer. Recently, influenced by macroeconomic situation, the performance of Sany declines obviously. With the combination of social investment decreasing,the government tightening, the reimbursement ability of small and medium-sized customers and the difficulties of accounts receivable recovery, Sany is short of funds. In addition, with severe overcapacity in the industry, enterprises are competing fiercely and the product profits begin to fall. Not only Sany but the entire industry enterprises are facing with the problems.Sany heavy industry is the main research object in this paper. Corresponding improvement strategy of the current existing problems are presented, in order to provides solutions to financial strategy problems in engineering machinery.As to investment, enterprises should adjust product structure, develop new product series and grasp the first-mover advantage to avoid from passiveness in the mature period. In addition, corporations should establish strategic alliance, combin with competitors. On the aspects of financing, the first consideration is not to reduce costs.but how to match with enterprise operating cash inflow risk,financial flexibility and reducing financial crisis. As to risk,at present, our engineering machinery subjects to foreign enterprises in the core technology. The core competitiveness of the product and brand effect is not obvious and profit margins is low. We don’t form a complete sales network in the world.As a result, foreign enterprises are preempting the market. So,enterprise shall establish a warning system, strengthen the management of contingent liabilities and accounts receivable and adjust the structure of financing to ensure abundant cash flow.