A Research On The Strategic Divergence Of H Group And The Selection Of Financial Management System

Since the reform and opening up, China’s modern tourism industry has entered a new period of rapid development, the number of tourists increased swiftly as well as tourism income and the proportion of the tourism industry contributed to the economic growth, which made the phenomenon related to tourism industry become a research hotspots. Mount Huangshan Tourism Group Co., Ltd is such a company that rely on scenic tourist resources and place Mount Huang tourism limited company which is a listed company as the entire group’s core business. As the market competition growing tense, how to utilize the internal resources effectively, Allocate resources reasonably, and maximize the value of idle resources, determining whether the enterprise can achieve sustainable development or not As two strategy for allocation of resources, the diversification strategy and integration strategy obtained the widespread concerns in recent years and was implemented in practice more and more. However, diversification strategy and integration strategy implementation must have a great influence even an attack on current financial management system.How to make the enterprise’s financial management system adapt to the diversification and integration strategy is an important issue to be solved.This paper consists of seven parts. The first chapter is the introduction on backgrounds, significance and researching purpose of choosing this topic, followed by the analysis about ideas, contents, framework and the research method of this paper.The second chapter is a review on the theory of development strategy and group financial management system, which lay the foundation to further discuss on the relationship between enterprise development strategy and financial management system. The third chapter introduces the general situation of H group, describes the reasons of the H group’s main business of tourism service and its financial characteristics.The organizational structure of enterprise are introduced from the development of Mount Huangshan tourism Limited company and Mount Huangshan Tourism Group Limited two aspects respectively, followed by analysis of the H group’s financial situation. In the fourth chapter, backgrounds, favorable conditions and specific measures of the H group were described in detail from the two aspects of diversification strategy and integration strategy respectively, followed by a clarification on specific performances of differences between diversification strategy and integration strategy and the H group’s strategic choice. In the fifth chapter, influences on the choice of the financial management system of H group caused by the differences between diversifications strategy and integration strategy are introduced. The sixth chapter concerns the problems that H group strategic differences bring to the construction of financial management system and the countermeasures that H group take. In addition, predictions on the development trend of the future business strategy of H group are given. The seventh chapter is the conclusion and prospect.The innovation of this paper is that from the perspectives of selections upon financial management system and effects on structures caused by the differences of integration strategy and diversification strategy,combined with the H group’s main business’s characteristics and the main source of income and profits, the decision-making process as well as the background and reasons that H group choose "centralization and supplemented by decentralization" method are introduced and analyzed, providing reference data for the construction of financial management system in the future. This paper also focus on the main source of income and profits of H group, combined with the background that China adjust the structure of audit industry so as to change the mode of economic growth, put forward reasonable suggestions for the future development strategy of H group selection.