Research On Strategy And Effect Of Financial Predicament Of Qinghai Salt Lake Industry Group Company

Profit and risk are mutually dependent on each other.On the one hand,if the pure pursuit of profit,then must take a big risk.On the other hand,in the company’s operation,if the profit and risk can not be balanced reasonably,it is easy to cause the company’s financial crisis.The financial difficulties of many companies have brought immeasurable losses to their shareholders and creditors as well as other stakeholders.Therefore,it is of great significance to analyze the deep causes and seek the countermeasures to get out of the predicament.In this paper,Qinghai Salt Lake Industry Group Company is taken as the research object.Firstly,through the literature research method it sorts out the domestic and foreign relevant theoretical research on financial distress,including the definition of financial distress,the causes of financial distress and related strategies to get out of the predicament and other aspects of theoretical research status.Secondly,it describes the related events of Qinghai Salt Lake Industry Group Company in the company’s financial difficulties,and analyzes the various reasons that make the company fall into financial difficulties.The reasons mainly include:(1)strategic risk level;(2)The level of business risk;(3)Corporate governance and internal control;(4)financial risks;Thirdly,by referring to the existing literature and materials,the paper summarizes various strategies adopted by Qinghai Salt Lake Industry Group Companyto get rid of the financial predicament,including: corporate strategy restructuring,corporate governance restructuring,financial restructuring and asset restructuring.Finally,this paper mainly uses entropy method and efficiency coefficient method to analyze and evaluate the effect of the above strategies.At the same time,summarize the relevant experience and lessons,so as to provide reference for other enterprises in financial difficulties.