The Financial Risk Assessment And Enlightenment Of LETV Under The Business Model Of "Whole Industry Chain"

In the form of fierce competition,many companies have adopted the "whole industry chain" business model to expand in an attempt to seize a larger market.However,some companies are bewildered by the good vision,have not evaluated their own capabilities,and rashly adopted the "whole industry chain" business model.Once the expansion speed is too fast and the tentacles reach too many industries,financial risks will be exposed.At this time,if the financial risk is not effectively controlled,it will hinder the normal development of the enterprise.LETV is a pioneer in the operation of the "whole industry chain" business model of Internet enterprises.However,since the end of 2016,due to the rumors of capital chain fracture and stock suspension for many times,it has become the focus of attention from all walks of life.Recently,Yueting Jia,the actual controller of the enterprise,has been banned by Shenzhen Stock Exchange for life as an executive of the company on the market,attracting a lot of discussion in the industry.Therefore,this paper takes LETV as the research object to study its financial risk control under the "whole industry chain" business model,aiming to warn the companies running the business model,make the same kind of enterprises take warning,and put risk control in the same important position as enterprise expansion.Based on the literature research,this paper defines the concept of the whole industry chain,expounds the relevant theories of financial risk control,and clarifies the mechanism relationship of the whole industry chain affecting financial risk.Then,start a case study of LETV,sort out the implementation path of LETV's "whole industry chain" business model,and describe its financial difficulties.After that,use the identification and measurement procedures in the financial risk control program to identify and analyze specific financial from important financial indicators,and then use the F-score model to measure and judge the severity of the financial risks of LETV as a whole.Finally,analyze the reasons for the increasing financial risks of LETV under the "whole industry chain" business model,and propose targeted financial risk control optimization suggestions,including improving the profitability,adjusting the pace of expansion,and optimizing the governance structure.The conclusion of this paper is as follows: When the "whole industry chain" business model is adopted for development,the mismatch between the capital strength and expansion mode of the enterprise will induce financial risks;the enterprise needs to control the financial risks in real time;the enterprise needs to focus on the core business in its business activities.To provide enlightenment to other companies through the study of case company,enterprises using the "whole industry chain" business model should take LETV as a warning,learn from the failure of financial risk control process,do not let risk control become mere formality,and maintain a good development trend under the "whole industry chain" business model.