Title:
The Financial Strategy of Monmilk Group Based on the Corporate Life Cycle
Author:
Du Panpan
Advisor:
Dr. Ma Yu
Degree:
Master of Business Administration
Major:
Finance and Accounting
Faculty:
บัณฑิตวิทยาลัย (Graduate School)
Academic year:
2566 (2023)
Published:
at the 7th Stamford International conference “Leadership & Social Sustainability in the Tech -Driven Era” https://conference.stamford.edu
Abstract
Human beings have been engaged in entrepreneurial activities for more than 1,000 years, how to make enterprises develop healthily and sustainably has become the focus of attention of the business and academic circles. The problem of this study centers on the Monmilk Group’s current financial strategy challenges, particularly its unclear target, which has led to financial management issues, constrained cash flow, and difficulties in initiating new business ventures. This situation has raised concerns about the company’s ability to sustain growth and adapt to market changes effectively. The objectives of the study were: 1) To identify the several life cycle stages of a company, based on the life cycle theory; 2) To analyze the financial characteristics of the company at each life cycle stage; 3) To determine the financial strategy of the company at each life cycle stage.
This paper adopted qualitative research methodology based on life cycle theory, aiming to explore the application of financial strategies throughout the different stages of the corporate life cycle. In this study, a targeted approach was taken for sampling and data collection to explore the financial strategies of Monmilk Group across its corporate life cycle. The study’s purposive sampling encompassed a diverse group within Monmilk Group, totaling 30 individuals across various organizational levels. This ranged from 5 C-level executives providing overarching strategic insights, to 8 senior financial managers with detailed operational knowledge, 4 board members offering governance perspectives, 6 department executives from critical business areas like R&D and marketing, and 7 long-tenured employees with historical viewpoints on the company’s financial evolution. This comprehensive mix was essential for painting a complete picture of Monmilk’s financial strategies through its life cycle stages.
After analyzing the interview data, this paper found that:1)The company mainly have four life cycles: start-up, growth, maturity, and recession; 2) The financial characteristics at each life cycle stage are: the start-up phase was marked by efforts to secure funding and manage cash flow, the growth phase focused on reinvestment and managing operational costs, the maturity phase emphasized sustainability and profit maximization, and the recession phase involved navigating economic challenges through cost management and asset reallocation; 3) The financial strategy at different phase are: for the start-up phase, priorities include securing funding, managing cash flow, and investing in growth opportunities, during growth, the emphasis shifts to reinvesting profits for expansion, managing operational costs, and strategic funding, in maturity, the focus is on sustainability, profit maximization, and optimizing the capital structure, while innovation remains key, in the recession phase, strategies pivot towards cost management, debt management, and seeking alternative revenue streams to navigate economic downturns. These tailored strategies aim to support Monmilk’s financial stability and growth throughout its corporate life cycle.
In conclusion, this study not only enhances the theoretical understanding of the corporate life cycle theory in financial strategy formulation but also offers practical insights for companies like Monmilk in aligning their financial strategies with their evolutionary stage. The findings highlight the importance of dynamic financial planning and adaptability in the ever-changing business landscape.
Keywords: corporate life cycles, financial characteristics, financial strategy
The Financial Strategy of Monmilk Group Based on the Corporate Life Cycle
6517195411 Du Panpan 2566 (2023) The Financial Strategy of Monmilk Group Based on the Corporate Life Cycle สารนิพนธ์ (Independent Study), Advisor: Dr. Ma Yu, ปริญญาโท (Master’s Degree), บัณฑิตวิทยาลัย (Graduate School), Master of Business Administration, Finance and Accounting, Bangkok: Siam University
Academic Year 2023, Graduate School 2023, IMBA, IMBA 2023, Independent Study, Independent Study 2023, Master of Business Administration, Master of Business Administration (International Program) 2023, Master of Business Administration 2023, ปริญญาโท (Master’s Degree), บัณฑิตวิทยาลัย (Graduate School), Master of Business Administration,Finance and Accounting