Title: The Financial Strategies of Jiugang Group Based on the Corporate Life Cycle
Author: Liu Wei
Advisor: Assoc. Prof. Dr. Qiu Chao
Degree: Master of Business Administration
Major: Finance and Accounting
Faculty: บัณฑิตวิทยาลัย (Graduate School)
Academic year: 2567 (2024)
Published: The 1st Thailand-Sino International Conference and The 17th National and International Academic Conference “New Quality Productive Forces and Sustainable Innovation” 14-16 November 2024 (pp.381-393) Click PDF
Abstract
In China and around the world, there are not many enterprises that can achieve longevity, but by adopting appropriate strategies, enterprises can achieve healthier and more sustainable development. This study focused on Jiugang Group, the largest steel enterprise in Northwest China, to explore its financial strategies at various stages, identify problems, and propose corresponding solutions to help it achieve healthy and sustainable development. The study aimed to achieve the following objectives: 1) To explore the company’s development in the different stages based on the life cycle theory; 2) To examine the financial characteristics the company exhibits at each stage of development; 3) To determine the financial strategies for each stage of the company.
This study used the qualitative research method guided by the life cycle theory, with the purpose of gaining an in-depth understanding of the financial strategies employed by enterprises at different stages of their life cycle. For the case of Jiugang Group, the purposive sampling method was used and interviews were conducted with 36 employees of different ranks at Jiugang Group to understand its financial strategy. After analyzing the interview materials, the following conclusions were drawn: 1) The life cycle stages of the enterprise are as follows: the start-up stage, the growth stage, the maturity stage, and the decline stage. 2) In the start-up stage, enterprises focus mainly on capital supply and cash flow; the growth stage emphasizes reinvestment to promote growth; the maturity stage focuses on maximizing profits through sustainability; the decline stage requires cost control and asset reconfiguration to cope with economic difficulties. 3) Corresponding financial strategies for different life cycle stages are proposed in this study: The strategy for the seed stage focuses on ensuring funds, cash flow, and investing in potential growth projects; the strategy for the growth stage shifts to expanding the business scale through reinvestment, controlling operating costs, and seeking key financing opportunities to support its strategic development; the strategy for the maturity stage concentrates on ensuring the long-term sustainability of the business, striving to maximize profits, and improving capital structure and continuous innovation; the strategy for the decline stage is to strictly control costs, actively manage debt, and explore new revenue channels to address the challenges brought by the slowdown in economic growth.
This study not only deepens the understanding of the application of the enterprise life cycle theory in the formulation of financial strategies but also provides practical advice for Jiugang Group, helping it to match its financial strategies with its own stages of development. The research results highlight the importance of adapting to the changing business environment and adjusting corresponding financial strategies in a timely and flexible manner.
Keywords: enterprise life cycle, financial characteristics, financial strategy
The Financial Strategies of Jiugang Group Based on the Corporate Life Cycle /
6417195013 Liu Wei 2567 (2024) The Financial Strategies of Jiugang Group Based on the Corporate Life Cycle สารนิพนธ์ (Independent Study), Advisor: Assoc. Prof. Dr. Qiu Chao, ปริญญาโท (Master’s Degree), บัณฑิตวิทยาลัย (Graduate School), Master of Business Administration, Finance and Accounting, Bangkok: Siam University