Research On Financial Strategy In The Background Of LI-NING's Strategic Transformation

The first 10 years of the 21 st century are the golden period for the development of China's sports goods industry.With the improvement of people's living standards and the successful holding of major world-class sports events in China,people's sports enthusiasm has been greatly encouraged and the rapid growth of China's sports goods industry has been stimulated.Sports goods companies "can make money as long as they open stores".As the Olympic dividend fades away,the sports industry has changed from the seller's market to the buyer's market,from blindly opening stores and expanding wholesale business model in the early stage,which has resulted in a large backlog of inventory in the sports industry.Sports goods industry has ushered in the winter of industry: a large number of stores have lost money or even closed down,many brands have bankrupted,and many sports brands are seeking to transform themselves.Save.Li Ning Company(02331),as the first domestic sports brand established and listed in China,has been ranked as the largest domestic sports brand industry in terms of business income and market share since its listing.In 2012,under the background of industry downturn,Li Ning Company established the strategic transformation goal of "from wholesale mode to retail-oriented business mode".Based on the relevant theories of financial strategy,this paper chooses Li Ning Company as a case study.By analyzing the strategic transformation of business level and the implementation of financial strategy at the functional level,this paper analyses the changes of financial performance,explores the relationship among strategic transformation,financial strategy and financial performance,and decides financial activities and business level by business activities.Strategic transformation affects financial strategic transformation,thus affecting financial performance to provide a new interpretation,but also to other enterprises seeking the path of transformation to bring reference and significance.This paper uses case analysis and comparative analysis to analyze the financial strategy of Li Ning Company in three stages: before,during and after the transformation,and draws the following conclusions: the strategic transformation of Li Ning Company conforms to the market development,and the financial strategy adopted in the transformation process effectively supports the strategic transformation at the business level;through the financial performance before and after the implementation of the strategic transformation.The evaluation shows that the operating performance of Li Ning Company fluctuates greatly in theprocess of strategic transformation,but with the completion of the transformation stage,the overall financial indicators show an improvement trend.At the same time,we get the following enlightenments: financial strategy should be matched with the strategic transformation of enterprises;in the transformation,we should pay attention to the changes of business performance and adjust the financial strategy,business strategy and enterprise strategy according to the actual situation;the specific investment strategy,financing strategy and distribution strategy of financial strategy should cooperate with each other in order to make the financial strategy play its optimal role.Only in this way can we better support the implementation of enterprise strategy and business strategy.