Reserarch On Financial Strategy Of Shouqin Company

The steel industry has very obvious life cycle. With the long-term and high-speed development of this industry in China, the steel industry has entered into recession. Due to the over production and stiff competition, some of the companies are sure to be eliminated who lacks of competitive power. In order to make further development of the steel industry, the company should be emphasized on the financial competence improvements. Meanwhile, propitiate financial strategy which can meet both the marketing environment and the company strategy shall be formulated to satisfy the financial resource optimization allotment to improve the company superiority.Shou Qin company is a professional heavy plate production company in Qinhuangdao invested by Shou Gang Group during the migration from Beijing to Jing Tang Port. Shou Qin company has built great creditability and reputation in the market at the initial stage with the professional equipments, advanced technology and high quality products. Shou Qin company has faced bottle neck during the development since competition intensifier in this industry. The business and financial risks have been keep increasing. It will be a considerable question of how to make competitive financial strategy on the basis of the advantages of Shou Qin company.This thesis starts by related strategy theories to study Shou Qin company. In this thesis, Michael Porter’s Five Forces Mode, BCG Matrix and SWOT has been used to analyze the macro environment, industry environment, self competence and financial status of the company. Life cycle stage has been discussed in this thesis. On the basis of company life cycle and general strategy, the writer makes the competitive financing, investment and allocation strategies and related guarantee methods to form systematic and scientific financial strategy for Shou Qin company. This strategy has promoted the financial resources get effectively collected, scientifically used and reasonably allocated. Also it has improved the financial competitive powers and satisfied the strategic goals of the company. The research of Shou Qin company’s financial strategy has combined the character of the steel industry and introduced into the life cycle theory. This research has not only enriched the financial study in steel industry but also supplied financial strategy references to other steel companies.