THE APPLICATION OF THE HARVARD ANALYTICAL FRAMEWORK: A CASE STUDY OF WANT WANT CHINA HOLDINGS LIMITED
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Abstract
With the complexity of the market, the financial analysis methods of enterprises need to be updated. As a modern financial analysis method, the Harvard analysis framework adds the considerations of strategy, accounting and prospects to solve the limitations of traditional financial analysis.
The Harvard analysis framework has four analysis parts. First, starting from strategic analysis, detailed strategic analysis is carried out using PEST analysis, Michael Porter's five forces model, and SWOT analysis. The second is accounting analysis, which analyzes accounting policies and accounting estimates from five subjects. The third part is financial analysis. In terms of solvency, horizontal and vertical analysis is carried out from the aspects of profitability, operating ability and growth ability. The last part is prospect analysis, which comprehensively forecasts the development prospects and risks of Want Want Group.
Through research, it is found that Want Want Group should focus on integrating resources and expanding product structure in its strategic direction; in accounting, it should improve the internal audit guidance and internal audit system within the group to improve the quality of its employees; in terms of finance, it should optimize its own industrial structure and strengthen its financial period expenses. In terms of prospects, it is necessary to actively expand overseas markets, focus on the international business environment and foreign exchange risk control.
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