The Research Of The Financial Strategy Of XX Airlines Group

As the market is constantly changing and the competition is fiercer, companies must have the core competitiveness to gain advantages, sustain profitability, and be invincible in the competition. It is an important issue to study how to cultivate and enhance the competitive advantage, maintain a healthy and stable development for enterprises in financial strategy. Financial strategy is an important part of enterprise strategy that directly impact the design and implementation of the Group’s strategy. Financial strategic management is the process for companies to effectively carry out capital operation and manage the enterprise resources for effective deployment. Financial strategy plans the resources of the enterprise and investment business rationally, as well as the cash flow of the enterprise so as to build long-term business financing platform to increase the core competitiveness of the enterprise and to form effective management to assess the investment timely and adjust rapidly in order to ensure the healthy and rapid development through scientific analysis in overall and long-term. Developing financial strategy appropriate for the enterprise is very important for the sustainable and healthy development of the enterprise. Based on the basic theory of financial strategy, this article introduce the main features of the financial strategy, factors that influence financial strategy, as well as the types of financial strategy and its applicable conditions. This paper takes XX Airlines Group as the research object:Firstly, through deep analyzing of the status of the Group’s investment, financial condition, organizational structure, it is found that the Group’s investment structure is unreasonable and ability to gain cash is weak.Secondly, the Group of external strengths, weaknesses, opportunities and challenges are analyzed with SWOT analysis method, and found that the Group has an advantage of management personnel in industry, regional and aviation, but due to structural problems, the Group depends too much on the shared aviation companies and the Group’s development is constrained, which means weak anti-risk ability; in financing, the Group depends too much on "short-term loans for long term use", and single financing and unsatisfied investment dividends mean there are certain financial risks; the Group needs to plan appropriate financial strategy via introducing the talent and the capital, diversifying the financing structure and building the core competitiveness. Because ofthe civil aviation market will grow rapidly in the future and face political development opportunities. Generally, the Group faces greater opportunities than the threats, it has better opportunities for development.Then, continue to focus on developing existing business, developing new business, and gradually forming a stable, balanced development of investment patterns are put up through analysis of each investment sector BCG matrix and the implementation of the Group’s preliminary financial strategy.Finally, the next stage of the Group’s financial strategy should be expansion financial strategy, financial strategy is to target around the problem of financing, built up a diversified financing platform, meanwhile to establish the financial management and control model in line with the Group’s development, and formalize an effective financial strategy assessment, feedback and adjustment system. Group’s financial Strategy will provide financing support through effective distribution and effectively transforming of the investment strategy will further backup the Group’s financing strategy implementation, and complemented by an effective income distribution policy, so as to finally create a virtuous cycle of funds to promote the development of the Group.In this paper, it is discussed how the Group’s financial strategy is formulated according to XX Airlines Group’s development strategy so as to provide a reference to other Group companies when they develop financial strategies.