The Application Research Of Harvard Analytical Framework In A Clothing Company

In recent years,many foreign clothing brands have entered the Chinese market.The domestic apparel industry has become more competitive.The new competitive landscape requires that the management capabilities of the company continue to increase.The apparel industry has the characteristics of rapid changes in market demand and rapid product updates,and it is more demanding for enterprises to adjust their product strategies to grasp market dynamic capabilities.The financial analysis should provide reference for management decision.If the company has a scientific financial analysis system,the manager can understand the business management of the company more deeply through the financial data,discover the problems that the company faces,and shorten the reaction time of the company to market changes.The characteristics of the garment industry require the financial analysis of clothing companies to stand on the height of corporate strategy,provide services for corporate management decisions,and assist companies to grasp the changes in market demand in a timely manner so that companies can design and produce products that meet consumer needs in the fierce market and obtain the initiative in the competition.This article through the understanding of the current status of the financial analysis method of A clothing company,found that its financial analysis is only a brief analysis of the trend of the financial statements and the ratio of the listed,did not pay attention to the impact of external environmental changes on the company,the lack of analysis of the company's strategy,the analysis results failed to provide a reference for management decision-making.Think that A clothing company needs a more comprehensive analysis system to improve its current financial analysis method.The Harvard analysis framework is an analysis system that combines the qualitative analysis and quantitative analysis with the guidance of strategy and can effectively overcome the limitations and defects of traditional financial analysis.The Harvard analysis framework is applied to A clothing company,strategic analysis is used to determine the business background and development strategy of A apparel company;accounting analysis determines the key accounting policies and important accounting subjects of A apparel company to ensure the validity of financial analysis conclusions;the horizontal and vertical comparison of financial data reveals the problems in A apparel company;the outlook analysis predicts the development direction of A apparel company and the risks.The research results show that: The leisure apparel industry with rapid changes in market demand is more in need of such a strategy-oriented analysis system.Harvard's analysis framework can be used to effectively compensate for the lack of its existing financial analysis system.