Study On The Effect Of Changhong Finance Strategy Under Life Cycle Perspective

One of the important focal points of my country’s economic development is the real economy.The home appliance manufacturing industry is an important part of the real economy.Since entering the new era,it is facing a new round of opportunities and challenges.In the context of economic slowdown,innovation has become a new engine leading the development of the industry,and the industrial structure tends to be mid-to-high-end.As a result,companies are paying more and more attention to strategic management,pursuing quality and efficiency development models,and financial strategies as an important part of the company’s strategy,the company actively adopts strategic thinking when carrying out financial management,rationally allocates resources,and allows capital to flow effectively.The purpose is to raise the required funds for the company and ensure the full use of funds to maximize the company’s value.Each enterprise develops through different cycles and has different characteristics in each cycle,distinguishing each life cycle and allowing appropriate decision-making to meet development needs in the context of each cycle.To achieve the long-term development goals of enterprises,different financial strategic plans are to be drawn up for each cycle of economic needs and development,combining the conditions of enterprises themselves and the current market environment.In the process of financial strategy development,enterprises should fully integrate life cycle theory,take life cycle evolutionary road as the main direction,ensure the smooth implementation of financial strategy and improve the reliability of financial strategy.In the daily operation and management activities of the enterprise,the enterprise’s healthy development is an essential part of the enterprise’s healthy development,which is the effective implementation of financial strategy.Most enterprises in our country still adopt a traditional financial management model that combines different business life cycles and fund-raising behavior,investment behavior and profit distribution behavior,so that the planning and implementation of enterprise financial strategies need to be adapted to life cycle changes,thus ensuring the successful achievement of enterprise development strategy objectives.This article chose Sichuan Changhong Company as a case,introduces the relationship between life cycle and financial strategy,introduces the relationship between life cycle and financial strategy,determines its life cycle by means of cash flow method and sales income method,and determines the life cycle of Sichuan Changhong,and the purpose is to mature on the basis of the characteristics of the financial strategy for the period,discuss the financing strategy,investment strategy and dividend distribution strategy that Changhong is currently in in the life cycle,and combine the management model of the company to analyze whether the financial strategy brings good results to the company,and for the existing problems,It will make reasonable adjustments and propose targeted optimization schemes.The analysis in this paper shows that: First,The study found that Changhong company has problems such as single fundraising method,unreasonable capital allocation and high debt repayment risk at the current stage,such as in terms of fundraising strategy;in terms of investment strategy,investment projects are relatively concentrated and lack of diversification problems,lack of input to research and develoment of other business products,increased internal risks and narrow marketing channels;in terms of distribution strategy,there are problems of single dividend distribution and low income distribution efficiency.Second,based on this,the article believes that the financing structure should be adjusted to effectively control financing costs,expand financing channels,and attach importance to diversified financing channels;take high-yield products as an important direction,build core competitive advantages,and do a good job in market control.To maintain the investment in domestic projects,expand the layout of diversified emerging industries,and seek new economic growth points;determine the appropriate dividend policy based on the income situation,and can not blindly adopt only one method to improve the financial strategy of Sichuan Changhong.It is hoped that the present theory system of life cycle and financial strategy will be improved,provide the basis for further research on financial strategy,help enterpr ises allocate resources more efficiently,improve managerial decision-making,improve the managerial capacity of enterprises and promote the sustainable development of enterprises.