The Application Research Of Harvard Analysis Framework In HK Medical Group Co.,ltd.

Under the background of the improvement of the national economic level,the deepening of medical reform and the sound medical insurance system,the health consciousness of Chinese residents is constantly improving,and the consumption demand for medical products and medical services is constantly increasing.The investment of social capital promotes the sustainable development of the medical industry,and China's medical industry has entered a period of rapid growth.As a private medical group enterprise in China's medical industry,HK Medical has expanded rapidly through continuous acquisition of private hospitals,and its asset scale has increased substantially.However,problems often occur in HK Medical in recent years.In2018,the company applied for suspension on the grounds of material asset restructuring.Shenzhen Stock Exchange has issued several restructuring inquiries to it.After the resumption of trading,HK's share price plummeted and suffered a serious loss in 2018.Its net profit dropped 723.1%,resulting in a loss of 1.39 billion yuan.After massive expansion,huge losses and abnormal performance changes are noteworthy.If HK Medical wants to create satisfactory performance and realize the development of the company,it is necessary to find out the problems of the current management and operation.As one of the most advantageous tools of financial management activities,financial analysis can help managers find obstacles to the development of enterprises and provide decision-making basis for management.But most of the financial analysis is through the simple use of formulas to calculate some financial indicators.This form of financial analysis does not take into account the business environment and the impact of accounting policies.In fact,the data reflected in the accounting statements are affected by the corporate strategy and accounting policy,so the quality of the financial analysis report obtained by using the traditional financial analysis method is poor.Based on the Harvard analysis framework,this paper starts from the strategic analysis to make financial analysis of HK Medical.Considering the external and internal environment of the enterprise,the financial statements are analyzed from a strategic perspective,and the root causes behind the problems of the company are deeply analyzed and studied.This paper firstly analyzes the current situation of the medical service industry with Porter's Five Forces Model,and then carries out a detailed strategic analysis on the opportunities and threats,strengths and weaknesses of HK Medical service with SWOT analysis method.Secondly,based on the results of strategic analysis,find out the success factors and major risk as the focus of accounting analysis.Then evaluate the rationality of accounting policies and accounting estimates and the quality of information disclosure ofgoodwill,accounts receivable,inventory,fixed assets and other items.Next,financial data in the annual report of HK medical from 2014 to 2018 are selected.It mainly uses trend analysis method and comparative analysis method,and compares with three leading enterprises in the same industry to evaluate the influence of strategy on their financial situation and business performance.Then the paper predicts the development prospect of the industry and possible risks of HK Medical.Through the above analysis,it is found that HK medical has problems such as too aggressive expansion,single financing channels,insufficient innovation capacity,and weak cost control.Some suggestions are put forward,such as strengthening internal management and control,adopting diversified financing methods,improving innovation and research ability,and strengthening cost control.