Research On TCL Group’s Financial Strategy Under The Background Of Enterprise Strategic Transformation

As an important representative of China’s manufacturing industry,the home appliance industry has formed an industry with complete categories and highly mature consumer market after a long period of development.In recent years,due to the change of macroeconomic environment and the end of supporting policies for household appliances,the market growth rate of household appliances industry has gradually slowed down.In order to respond to the national strategy of manufacturing and strengthening the country and seek sustainable development,traditional home appliance enterprises began to transform into intelligent technology.In order to comply with the development trend of the industry,TCL Group began to transform and upgrade,from traditional home appliance enterprises to high-tech groups,divesting loss-making business segments,from related diversified development to core specialization,vertically integrating the industrial chain,and focusing on the layout of semiconductor display fields.TCL group is one of the leading enterprises of household electrical appliances.At present,the strategic transformation of enterprises has achieved initial success,and it is representative to take it as the research object.First of all,combing the literature and theory related to financial strategy,clarifying the basis and content of TCL Group’s overall strategic transformation,laying the foundation for the later analysis of its financial strategy.Secondly,based on the relevant operating information and with the help of grounded theory research,the investment,financing,operation and dividend distribution strategies of TCL Group before and after the transformation are analyzed.It is found that the financial strategy of TCL Group is in harmony with the corporate strategy,and the financial strategy of TCL Group also changes correspondingly before and after the transformation.Then,combining with the main financial data and operating information,this paper makes a comparative analysis of the financial strategies before and after the strategic transformation of the enterprise,and then analyzes how the implementation of the financial strategies affects the changes in enterprise value.Finally,the conclusion is drawn from the case study and relevant suggestions are put forward.Through research,it is concluded that TCL Group’s investment strategy is closely implemented around the goal of enterprise technological transformation,which has brought new profit growth points;The fund-raising strategy has changed from simplification to diversification to meet the needs of enterprises’ transformation funds,and the expansion of debt financing scale has increased the pressure of debt repayment;The operation strategy is adjusted in time according to the business changes,which maintains the competitive advantage of the enterprise,but the inventory turnover ability needs to be improved;Stable dividend distribution before and after the transformation to protect the interests of investors;Forward-looking layout guarantees sustainable development in the future,and the value creation ability of enterprises fluctuates and improves.Based on the research of TCL Corporation’s financial strategy under the background of strategic transformation,this paper puts forward the suggestions of continuously optimizing debt structure,reducing costs and improving efficiency by accelerating technology change,improving inventory management system according to business changes,and paying attention to investment demand and shareholders’ interests in dividend distribution,so as to provide experience for TCL Corporation to deepen its strategic transformation in the future and other enterprises in the same industry who want to transform under the background of "Made in China 2025".