The Financial Model Of Military Industrial Enterprises

Under the new situation of worldwide disarmament, enterprises of the military industry are faced with problems of low profitability, lacking of efficiency as well as a lagging system. Thus reform and restructure become to the trend of development in these enterprises for the sake of survival. However, the function of financial management, which is considered as the inner driving force of a firm, is unable to make its due contribution and thus required to make immediate transformation in the market economy.The sample of this paper is one of the safeguard backbone enterprises in the naval vessels equipment industry of our country. This research object is set in a system combined with both plan economy and market economy, and in this case, the financial management of this enterprise has its generality but also some unique features. According to the aspects mentioned above, financial research in the enterprises of the military industry has to be theoretical and practical as well. The research advantage of this paper is that it provides a reality-based, operable financial model that mixed both financial and accounting tasks from the perspective of structure designing, strategic planning and the choice of business model. Also the new financial model is based on the real issues of military industry enterprises.The research of this paper work through the way of reasoning and providing facts, it analyses the case of the financial management model in the military industry enterprises, explores the financial activities and financial relations, finds out problems and offers solutions. The content of this paper comprises of 6 parts. Chapter 1, the introduction, gives the reason why choose this direction and the aim of this research. Chapter 2 talks about literature review and some theoretical basement. Chapter 3 is facts and views which gives the fundamental view of this paper with the analysis of a financial management case in the military industry enterprise. Chapter 4 is to analyze the financial advantage as well as the management model of the sample firm, indicating the inner relation between the nature of military industry enterprise and its financial management. It also gives comparison with that of some general industrial and commercial enterprises to find its unique features. Chapter 5 is to design the best financial model by first specifying the strategic position of military industry enterprise, and then improving the financial management model which has both universal and unique features, thus come out with solutions for the enhancement of the level of financial management. Chapter 6 is conclusion and suggestions.This paper draws a conclusion that despite the weak foundation of the financial management in military industry enterprises of our country at present, it will open a new page in the future with the implementation of a new financial model. The new model can be achieved by the establishment of financial mechanism, more focus on professional management, division of carrying out of the duty of financial management etc.