Research On The Long-term Financial Strategy Of Enterprises Based On Life Cycle Theory

The development process of an enterprise is roughly going through four stages of start-up,growth,maturity and decline.Enterprises in different stages of development,with different financial characteristics,the formulation of enterprise financial strategy should be combined with the needs of business development and financial situation,to ensure the realization of the overall strategic objectives of enterprises.Only by building a financial strategy system suitable for the development needs of enterprises based on the perspective of enterprise life cycle theory,can we help enterprises to constantly cope with the difficulties and challenges faced in the development process.However,from the domestic current enterprise management model,many enterprises financial strategy formulation is more casual,resulting in waste of property resources.At present,with the increasing aging population in China,the demand of residents for the pharmaceutical market has gradually increased,and the frequent policies of the state on the pharmaceutical industry have led to new opportunities and challenges.Pharmaceutical industry is an important part of China's national economy,so it is of far-reaching significance to study the financial strategy of life cycle theory for enterprises in the pharmaceutical industry.This paper takes the method of combining theoretical research with case study,first combs the relevant literature,and expounds the concept of financial strategy theory and related theories,which provides a theoretical basis for the follow-up study of Fosun medicine cases.This paper selects Shanghai Fosun Pharmaas the research object,first analyzes the relevant financial data under the effect of the implementation of the financial strategy of the company in the past three years,and finds that the company's asset structure is unreasonable,the proportion of liabilities is high,the enterprise's debt service pressure is greater,the profitability of the enterprise and the inefficient operation of the assets;And the enterprise's sales growth rate is greater than the profit growth rate,indicating that the cost of the enterprise is too high and so on,and then take this as the starting point to analyze the internal and external environment of the company,and on this basis,the comprehensive use of sales income percentage method and cash flow method to determine the life cycle of the enterprise,Based on the problems existing in the financial situation of the enterprise,this paper analyzes the problems existing in its current financial strategy and financial strategy,puts forward the financial strategy adjustment measures and safeguard mechanism which are suitable for the life cycle of the case enterprise,and finally draws the research conclusion and enlightenment through the case analysis of Fosun Pharma.It is found that the enterprise financing strategy mainly focuses on external financing,the asset-liability ratio is high,the fund-raising strategy is more radical,and the poor management of working capital is carried out in-depth analysis of investment strategy and working capital management strategy.Then combined with the financial and financial strategy matrix to the long-term enterprise's financial strategy for the overall evaluation.Through the research,it is found that the financial strategy implemented by the company at present is basically in line with the basic requirements for the development of long-term enterprises,but some problems existing in the enterprise financial strategy still need to be further perfected.Under the framework of life cycle theory and financial Strategy theory analysis,this paper combs the relevant characteristics of long-term enterprise financial strategy through the case analysis of Fosun Pharma,and hopes that this topic can provide some reference and reference for the related financial strategy of pharmaceutical industry.