Research On The Management Strategy Of Group A Under Harvard Analytical Framework

In the current development environment of economic globalization,as far as enterprises are concerned,there is not only a broader market space,but also a greater pressure of competition.Since 2018,the household appliances industry has been affected by such factors as the escalation of Sino-US trade frictions,the continued strengthening of deleveraging,the increase of interest rates in the United States and the downward trend of real estate.The overall growth rate of the industry has slowed down and the challenges have increased.How to achieve successful business transformation,resist the downward impact of the industry and seize the development opportunities to gain new market advantages by formulating the correct enterprise development strategy is a problem that must be considered for the local household appliances enterprises in China.Group A took the lead in transforming into a comprehensive science and technology group,and maintained a good development situation by changing its own business strategy.Therefore,this paper chooses Group A as the research object.The Harvard Analytical Framework is chosen as an analytical tool.It covers four dimensions:strategic analysis,accounting analysis,financial analysis and prospect analysis.It can combine strategic management theory with financial management theory,and give full play to the characteristics and advantages of Harvard Analytical Framework in strategic analysis.It can also mine the influence of business strategy on financial situation through financial data performance.In order to evaluate the enterprise's business strategy,we hope to bring inspiration to other enterprises in the same industry.This paper consists of six parts.The first part is an introduction.It introduces the background,significance and current research situation of this paper.Then it describes the main content and structure of this paper.It points out that the innovation of this paper is not only to regard Harvard Analytical framework as a financial analysis tool,but also to use the structure of this framework to analyze the business strategy of enterprises.From the angle of strategy and financial analysis,it is of great significance to construct a new framework of enterprise strategy analysis by closely combining strategy with financial analysis and dialysis of the scientificity of business strategy selection,the implementation mode of strategy and the effect of strategy implementation.The second part is about the Harvard analytical framework and the related theories of strategic management.The third part is the general situation of Group A.The fourth part is the application of Harvard Analytical Framework in Group A.The strategy of Group A is analyzed from four aspects:strategic analysis,accounting analysis,financial analysis and prospect analysis.The strategic analysis mainly analyses the internal and external environment of the enterprise and its competitiveness.The accounting analysis mainly chooses inventory,accounts receivable and fixed assets as key accounting policies and estimates.The final conclusion is that the information quality of the financial statements of Group A is relatively reliable,which paves the way for financial analysis.Then,it separately discusses the solvency,operation ability,profitability and development ability of the enterprise.Using ratio analysis method and comparative analysis method to make financial analysis;then on the basis of strategy,accounting and financial analysis,the paper carries out prospects analysis,mainly predicts the operating performance and risks faced by Group A,evaluates the existing operating strategies,and forecasts the future strategic trends.Finally,it summarizes the problems existing in the Harvard analysis framework:1.Under the diversified development model,the advantages of core products industry are not obvious;2.Accounting estimates may overestimate asset value;3.Cost control capabilities need to be strengthened;4.Under the globalization strategy,overseas business faces great risks.The fifth part is the suggestions and enlightenment.For the problems reflected in the current strategy,Group A through the Harvard analysis framework gives the suggestions of management:1.Enhancing the market share of core products.2.Enhancing the prudence in accounting estimates.3.Controlling costs and improving profit margins.4.Enhancing domestic sales strength.At the same time,it also gives the future business strategy choices of Group A.Suggestions:1.Transition from leap-forward development to sustainable development mode.2.Attempting the business model of enterprise strategic alliance.Finally,some enlightenments are put forward for enterprises facing transformation pressure in the same industry:1.Managers need to have excellent leadership.2.M&A is an important way of strategic implementation.3.Focusing on small household appliances market.The sixth part is the conclusion and shortcomings.It summarizes the main content of the paper and considers that the management strategy of Group A is scientific and reasonable in general.Finally,it points out the shortcomings of this paper.With the help of Harvard Analytical Framework,this paper evaluates and forecasts the current business strategy of Group A,and puts forward some enlightenments for the same industry enterprises,hoping to help other household appliances enterprises to make their own business strategy.