Research On Financial Strategy Matrix Of Valin Group

The industry of steel in China has achieved rapid development since the reform and opening up,but it is also experiencing a hard time.In order to rebuild the confidence in developing steel enterprises,the government has introduced relevant policies in the context of the 13 th Five-Year Plan for the development of China's steel enterprises.Bringing steel industry the opportunities and challenges.However,the financial risks of Valin Steel Group have increased continuously in recent years,but the traditional methods of evaluating financial indicators are no longer fully applicable,so the theory of financial strategy matrix came into being.This model is a financial strategy analysis tool formed in recent years.It comprehensively evaluates the financial strategy of the enterprise from the perspectives of value creation ability and capital utilization effect of the enterprise,and judges the strategic quadrant of the enterprise through four quadrants of the financial strategy matrix.The model will provide more accurate,more comprehensive and long-term opinions and suggestions for the formulation of corporate financial strategy.This paper takes Valin Steel Group as the research object.Firstly,summarized the theory of financial strategy and financial strategy matrix;secondly,it introduces the general situation of the group,the overall corporate strategy and the external environment of its implementation,and analyzes the current financial status of the group from three aspects:profitability,operational capability and solvency,find out the financial problem;thirdly,through the calculation of the financial strategy matrix of Valin Steel Group,analyzing which quadrants of the matrix are in the five years from 2013 to 2017,based on which,the conflict between its financial strategy and the overall corporate strategy is found.It analyzes the problems of the current financial strategy of Valin Steel Group in investment strategy,financing and distribution strategy.Finally,specific adjustment measures are proposed for Valin Steel's financial strategy to enable its financial strategy to support the development of the company's overall strategy.Through the research,this paper draws the following conclusions:Firstly Valin Steel Group has problems in its current profitability and capital structure,and its overall operating conditions are so poor that its financial strategy cannot support the development of corporate diversification strategy;secondly,different from the traditional financial analysis method,the introduction of the financial strategy matrix to make recommendations for the determination and implementation of thecompany's financial strategy can make the company's financial strategy more dynamic and scientific.The case company Valin Steel Group has a strong representativeness in the iron and steel enterprises.It can be seen that the research and conclusions of this paper on Valin have certain practical significance for the financial strategy analysis of other steel enterprises.