Research On The Financial Strategy From The Perspective Of Value Chain-Take XDF Education Group As Case

Competitions among enterprises escalate as the market economy develops rapidly.Currently,companies tend to pursue optimal enterprise value on the aspect of value chain instead of maximum profit.Value chain provides enterprises more than sustainable value proliferation.It also makes chances for them to make breakthroughs in production,R&D,marketing,post-sale service and other sectors,playing an organic role in the whole development process of enterprises.Value chain has been a crucial instrument for companies to figure out their competitiveness and enhance the core ones.In a market where business competitions get white-hot,enterprises must analyze and manage their value chains on a strategic view if they want to enhance competitiveness.This requires a flexible and proficient use of the value chain theory to analyze all sectors of the company operation and reduce operative cost.Financial strategy is an important component of company function strategy which is vital to realize company's comprehensive strategy.This essay takes XDF Education Group as an example to analyze its financial strategy on the aspect of value chain.The author combines the value chain theory,which is the fundamental theory of this essay,and enterprise financial management,in order to analyze the financial management of the group.The essay also provides solutions to optimizing its value and achieving substantial development for the example company with real operation figures and relevant researches of strategic management.The essay collates domestic and foreign materials of value chain and financial strategy,analyzing the financial strategy of XDF Group base on the value chain after describing value chain,financial strategy,and competition strategy and other relevant theories.Firstly,the author briefly introduces XDF Group about its primary business,as well as an overview of the Chinese education industry and its value chain.Secondly,the author analyzes the value chain of XDF Group,namely,outstanding main business,diversified investment,management of customer service value,human resource management which enhances the value of the whole industry.The analysis also mentioned the motives of XDF's value chain financial strategy on the aspects of internal and industrial factors.Then the essay goes to the major part.The author describes the implementation of internal and external value chains based on the analysis of financial strategy above,and analyzes the group's solvency,profitability,operation ability,growth ability,sector revenue and regional revenue based on its financial data.Moreover,the author points out certain problems exist in the group's value chain financial strategy.Last but not least,the author gives opinions of optimizing its value chain financial strategy from various perspectives.