Research On Financial Strategy Of Hainan Yedao Group Co. Based On Enterprise Life Cycle

Financial strategy is one of the core components of the overall strategy of the enterprises.Formulating financial strategy scientifically is of great significance to the sustainable and healthy development of enterprises.The formulation of the financial strategy is inseparable from the analysis of the internal and external environment of the enterprises and its changes.By judging the life cycle of the enterprises,it is possible to analyze and foresee the future development direction of the enterprises from a dynamic perspective,which the financial strategy based on is more objective and forward-looking.As an important social unit,the enterprise,like the organism,will experience the initial,growth,maturity and recession,which is a typical form of the enterprise life cycle.By using the two dimensions of the financial strategy matrix,namely value creation and capital surplus and deficiency,we can make a more detailed division of each stage of the enterprise life cycle,and then develop a more targeted financial strategy.With the development of the society and the enhancement of the concept of health care for the people,the scale of the health wine market has continued to expand.The great health strategy and consumption upgrade have both promoted the health wine industry to flourish.Hainan Yedao Group Co.,Ltd.is the first listed company in the health wine industry.In 2003,its main business income is more than 1 billion yuan,and it was the leader in the health wine market.However,since 2015,the net profit,deducted non-recurring gains and losses,of Hainan Yedao Group Co.has been negative for three consecutive fiscal years.In 2017,its annual operating income is about 1billion yuan.The development of Hainan Yedao Group Co.presents a parabolic trend of rising first and then falling.In order to provide financial strategy optimization suggestions for Hainan Yedao Group Co.,this paper takes Hainan Yedao Group Co.as a sample to analyze its financial strategy from the perspective of enterprise life cycle.Based on financial strategy theory and enterprise life cycle theory,this paper constructs a financial strategy planning system.With the division of the enterprise life cycle and analysis of the strategic environment,this paper provides financial strategy planning recommendationsfor enterprises.The specific application of this system in Hainan Yedao Group Co.is as follows: firstly,Hainan Yedao Group Co.is currently in the growth period(fluctuation period),and the development prospect is uncertain.Secondly,by analyzing the non-financial factors in the strategic environment,it is judged that Hainan Yedao Group Co.should adopt a reversal strategy to change its disadvantages and grasp external opportunities.By analyzing the financial factors in the strategic environment,it is judged that the current financial strategy adopted by Hainan Yedao Group Co.is “high asset-liability ratio,diversified investment,loose and inefficient operation,no dividend”.Finally,combined with the enterprise life cycle and the overall requirements of the reversal strategy,in order to solve the problems existing in the financial strategy of Hainan Yedao Group Co.,the proposed financial strategic planning is as follows: middle asset-liability ratio,centralized investment,tight and efficient operation,no dividend.From the perspective of enterprise life cycle,this paper studies the financial strategy of Hainan Yedao Group Co.and provides reference for the formulation of financial strategies of other companies.