Financial Diagnosis Of S Company Based On Harvard Analysis Framework

Rising wealth and a change in diet among the Chinese population has resulted in a rapidly expanding dairy market.With that has come relentless growth in the dairy enterprises.However,with the aggravation of competitive degree between enterprises and the events of dairy products quality safety occurred frequently,many companies are suffering in the interim of the steepest fall S company is one of them.In fact,S company is not less than that of the first camp companies like Erie shares and Bright Dairy from the resource configuration perspective.But now S company is not only very far behind the first camp companies in th momentum of development,but also will likely be surpassed by the second camp companies like Bein Mate.Therefore,this paper uses the Harvard analysis framework to conduct a comprehensive diagnosis about S company's business and financial condition to explore reasons that leading to S company's dismal earnings.First,this paper introduces S company's and other comparative companies' basic information and operating conditions,then regards S company's strategic analysis as logical starting point to analyze dairy industry's condition by using five competitive force model.Based on the above analysis results,the paper also finds out S company's strength,weakness,opportunity and threat by conducting SWOT analysis.Right after that,this paper conducts an accounting,financial,prospect analysis to S company.The financial analysis is the most important and main content of this paper which mainly analyses S company's financial conditions,disparities between comparative companies,factors of disparities and degree of disparities.After analysis,this paper summarizes the financial diagnosis results,and on this basis,suggestions is put forward for reference.On the strategic side,S company should implement the different strategy by developing high-margin products' market to boost profitability.On the accounting side,S company should strengthen the stock and assets management and increase their spending on R&D.On the financial side,S company should optimize the income structure,reduce the cost expense,make the best use of funds and stabilize financing policy.This paper believes that as the release of relevant policy and enhancement of their own management level,S company's business performance will be improvement in the near future.