Strategic Option Study Of GOME Based On Financial Statement Analysis

GOME,once the leader of Chinese home appliance retail,the former board chairman Mr Huang successively be the richest man of mainland China three times in 2004,2005 and 2008.It enjoyed a high reputation both at home and abroad because the company had outstanding performance,But it is also discussed in the world many times because of the company founder’s illegal events.Academic articles surrounding GOME’s governance is endless,not only that,academic articles about GOME’s strategy research is common too.But now,the articles combining the GOME’s strategy with financial data and using modern financial statement analysis method to study are rare.If a company’s strategy can be implemented effectively,the result will eventually be reflected in finance,therefore,the logic starting point of analyzing the financial statements of the company is to analyze the company’s strategy,and the traditional financial statement analysis just ignores it.For the reason,according to the company’s strategic planning at different stages,this article will analyse GOME from 2005 to 2014,a total of 10 years,it is divided into four stages:2005 to 2008 as the first stage,2009 for the second stage,2010 to 2012 as the third stage,2013 and 2014 for the fourth stage.This paper will proceed to strategic analysis,accounting analysis,financial analysis at each stage and prospect analysis.At the same time,the existing articles based on strategic analysis mostly analyse just one level of strategy,some are strategy at company level,some are strategy at business unit level,the research of this paper is a comprehensive analysis of the target company:corporate strategy,business unit level of strategy and function strategy.The process of performing established enterprise strategy is to make the operation of the business.How to reflect the real economic activities of enterprise through the financial statements,financial statement analysis based on the strategy provides a new perspective way of thinking.In the end,this paper will give some suggestions suitable for GOME after conclusion based on the analysis of the above.