Research Of Financial Strategy Transformation Of Hunan Tianyan Based On Financial Strategy Matrix

After China's full implementation of the reform and opening up,the continuous increase in GDP and per capita growth of disposable income,both indicate that China has entered the ranks of the automobile power.And for the future China into the automobile power to provide unlimited possibilities.To achieve this goal,the importance of revitalizing the engine manufacturing industry appears to bear the brunt.As an engine manufacturing enterprise with great local influence,Hunan Swan Goose Machinery Manufacturing Co.Ltd.(Hunan Swan Goose)has been under the attack of foreign enterprises and environmental protection standards in recent years,the financial situation that faces is very dangerous.so,it needs to seek financial strategy to transform urgently.Therefore,this article chooses Hunan Tianyan as the case enterprise,carries on the research to its financial strategy transformation direction.The article is divided into three parts: the first part is the first chapter,Chapter 2.This paper introduces the research background,research significance and research status at home and abroad,and expounds the theoretical basis related to financial strategy and Financial Strategy Matrix,paving the way for the future research.The second part is Chapter 3,Chapter 4 and Chapter 5.This part is the core of the article.This paper first introduces the basic situation and financial situation of Hunan Tianyan Group,and then constructs the financial strategy matrix by analyzing the financial data of Hunan Tianyan group from 2014 to 2018,on the basis of this,the paper analyzes the problems of Investment Strategy,fund raising strategy and working capital management strategy,and gives the related transformation suggestions.The third part is the sixth chapter of the thesis,which is the conclusion and prospect of the thesis.The results show that the value of Hunan Wild Goose decreased from 2014 to 2018,and there were different degrees of capital shortage in 2016 to 2018.It shows that the Financial Strategy Matrix can accurately locate the development state of an enterprise,and the financial strategy based on this matrix is more practical.In the aspect of financing strategy,the company has the problem of limited financing channel and high financing risk.As a result,companies can improve their capital structure by increasing equity financing and issuing Convertible bond to reduce financial costs;in terms of Investment Strategy,companies face the problem of a single portfolio and inappropriate investment objects.The company should concentrate the existing resources to build the brand advantage,look for the opportunity of foreign investment,and pay attention to the investment of Product Research and development.Therefore,the company should appropriately increase the proportion of long-term Liabilities,and adjust the existing credit policy to improve the working capital turnover efficiency.The main contributions of this paper are as follows: First,on the basis of the research of domestic and foreign scholars,the model of Financial Strategy Matrix is used in the case study of enterprises,at the same time,the extension of the Financial Strategy Matrix is extended,and it can provide some reference for similar enterprises in the same industry.