Analysis Of The Financial Strategic Management Of Lulu In Chengde

There is a saying in the old saying,"If you don't seek the world,you don't want to make a fuss;if you don't seek the overall situation,you don't want to find a domain." This sentence tells us that everything must be planned and strategically guided.As the highest guiding principle of enterprise development,corporate strategy is related to the sustainable development of enterprises.The corporate strategy is composed of a series of specific strategies,such as marketing strategy,production operation strategy,research and development strategy and financial strategy.The choice of these specific strategies is important to the impact of the business.Among them,the financial strategy is especially important,which is of vital importance to the survival of a company.The company's financial strategy involves three aspects;financing,investment and profit distribution.The financial strategy of an enterprise has a path dependence and is at a different stage of development.The financing,investment and profit distribution strategies of enterprises are different.At different stages of development,if an enterprise chooses an appropriate financial strategy,it can promote the development of the enterprise.Otherwise,the enterprise will be in financial difficulties and even cause the bankruptcy of the enterprise.There are many theories about corporate financial strategy management.The financial strategy management theory based on the enterprise life cycle theory is a relatively new field.The enterprise life cycle theory was founded by the American business consulting management expert Ichak Edis.It is a kind of enterprise management theory which is summarized and refined by Ichaq Erdis in the process of providing management consulting services for enterprises.After he put forward this theory,scholars have tried to combine it with financial strategy management to build a corporate financial strategy management model from the perspective of enterprise life cycle.The enterprise life cycle theory divides the enterprise into four major stages: the initial stage,the growth stage,the maturity period,and the recession period.Correspondingly,in the four stages of the life cycle,companies also have matching financial management strategies.To understand the different stages of the enterprise life cycle,why should companies adopt different financial strategies,we must first understand what the fundamental goal of financial strategy management is.Financial management theory tells us that the fundamental purpose of financial strategy is to maximize shareholder wealth.Although companies will adopt different financial strategies at different stages of the enterprise life cycle,the goals are the same – maximizing shareholder wealth.According to the enterprise life cycle theory,the best state of the enterprise is the maturity period,but the enterprise cannot exist forever,so what we can do is to keep the enterprise as mature as possible,so that the recession period of the enterprise is as late as possible..During the financial practice work during the graduate study,I was exposed to the financial data of Chengde Lulu Co.,Ltd.With the in-depth study of Chengde Lulu's annual report,I found Chengde Lulu to be a more distinctive beverage company.In recent years,the proportion of monetary funds in the total assets of enterprises has exceeded 50%,and there are almost no interest-bearing financial liabilities.There are a lot of cash dividends distributed every year.So for a company like this,whether its financial strategy is optimal,whether to achieve the maximum shareholder wealth,has always been my thinking,so I use it as the research object of graduation thesis.By reading the "Enterprise Life Cycle" and related literature,it is found that one of the difficulties in the life cycle theory of enterprises is that it is difficult to accurately divide the life stage of an enterprise with a quantitative indicator.At present,the more mature division method is the cash flow discriminant method.This paper uses this method,and also tries to prove it with some new methods.This paper is a case study.The goal of the research is to analyze the financial situation of Chengde Lulu by combining the theory of enterprise life cycle and financial strategy theory to explore the financial strategy that Chengde Lulu should carry out in order to maximize the shareholder wealth.optimization.