Research On Sichuan Changhong Financial Strategy Based On Life Cycle

In the contemporary society with such rapid development of science and technology,the foundation of China’s development has always been the real economy,and accelerating its transformation and upgrading has become an urgent task.Therefore,in order to ensure the sustainable and stable development of enterprises,enterprises should formulate a more scientific and reasonable financial strategy based on the macro perspective of corporate governance and their own actual situation.Enterprise life cycle theory can help enterprises better analyze their stages of development and combine them with financial characteristics to provide enterprises with more flexible and adaptive financial strategies.As one of the well-known brands in China’s home appliance industry,Sichuan Changhong has been brave to face threats and challenges from the outside world for decades since its establishment,constantly innovating,firmly grasping the opportunities brought by the market,exploring its own characteristic development path,and gradually becoming a representative enterprise in China’s home appliance market.Therefore,this paper selects Changhong in Sichuan Province as a case study to analyze and study its life cycle and financial strategy.From the perspective of life cycle theory,this paper uses literature research method,case study method and trend analysis method to analyze and explore the financial strategy of Sichuan Changhong,and make optimization and adjustment.This article first introduces the research background and sense,and summarizes the financial strategy theory and life cycle theory on the basis of in-depth study of domestic and foreign academic literature,which provides theoretical foreshadowing for this paper.Secondly,by analyzing the external macro environment,industry environment,internal environment and SWOT analysis of Sichuan Changhong,the strategic environment facing Sichuan Changhong is clarified.According to the life cycle related theory,according to the cash flow combination method and sales revenue trend method,the current life cycle of Sichuan Changhong is judged to be the mature period,and the problems in the financing strategy,investment strategy and dividend distribution strategy adopted by Sichuan Changhong in the mature period are analyzed in depth.Finally,the financial strategy is optimized based on the life cycle,and rationalization suggestions are put forward to adjust the financial strategy of Sichuan Changhong,which is of great significance to the stable operation and development of Sichuan Changhong in the later stage.The conclusion of this paper is as follows: First,Sichuan Changhong’s current financing risk is large,the investment income is not optimistic,the distribution method is single and the amount is small,and more attention should be paid to improving the financial strategy based on the life cycle.Secondly,due to the intensification of competition in the home appliance industry,many enterprises have suffered losses or even bankruptcy and bankruptcy for many years,and the survival pressure of home appliance companies is increasing day by day.The innovation of this paper lies in the novelty of the topic selection and the representativeness of the cases.There are relatively few research literature on the combination of enterprise life cycle and financial strategy,and the combination of the two development is required by social trends,and Sichuan Changhong from the military industry,color TV industry,to the diversified development of information electronics,the variety of industries is rich and diverse,home appliances are numerous,in the home appliance industry is representative.