Application Analysis Of Harvard Analysis Framework In Xiaomi Group

With the increasing prosperity of the smartphone industry,the impact on social development and people's lives is also increasing.However,in recent years,the smartphone market has shrunk,and competition in the industry is getting fiercer.Fortunately,the arrival of the 5G era has brought new business opportunities to the smartphone industry,and has also placed the industry in a new stage of transformation and upgrading.In less than ten years,Xiaomi Group has become a leader in China's smartphone industry.During the period of difficulty,instead of failing,it quickly adjusted the company's own state to respond to market changes and development bottlenecks.It is still in AIoT and Internet services.Layout in the field to create diversified transformation and upgrading of enterprises.Due to social progress and economic development,the limitations of traditional financial analysis have become increasingly prominent,and cannot meet the public's demand for financial analysis.In view of the shortcomings of traditional financial analysis,this article analyzes the financial statements of Xiaomi Group based on the Harvard analysis framework,explores the transformation and development of Xiaomi Group,and makes reasonable suggestions for its future development.This article selects Xiaomi Group,the only listed Chinese company among the top five in the smartphone industry,as a case study object,based on the harvard analysis framework,the financial data and information of enterprises from 2015 to 2018 are analyzed.The article first introduces the current operating status of Xiaomi Group.Starting from strategic planning,elaborating the external environment and the company's own strategic choices.Afterwards,in the accounting analysis dimension,key accounting policies and estimates were identified,and monetary capital,inventory,trade receivables,non-current assets and r&d expenditure were selected for evaluation.Then,based on strategy and accounting,the financial level is studied,and the important financial information and data in the financial statements are first sorted out and analyzed;then,after that,according to the order of profit,debt repayment,operation and growth,the vertical self-development analysis and horizontal peer comparative evaluation of xiaomi are carried out from four aspects of capability.Finally,the development prospects of the smartphone industry and Xiaomi Group were predicted.Through the analysis of this article,we can see that the main problems in the operation of Xiaomi Group are:weak technological innovation ability of the enterprise;the profitability of the main business is poor,and the short-term solvency performance is weak;the future positioning of the core business should be clear,and the Enterprise management should continue to strengthen.In response to the above problems,the following optimization suggestions are proposed:enhance the core competitiveness of smartphones and enhance technological innovation;comprehensively position products according to different markets,and expand the profit targets of smartphones through policy support and expansion of foreign markets;enhance IoT and Life sales products and Internet services to expand the scale of profit sources;use financing advantages to adjust and improve the cash flow structure;improve the level of operation and management,and continue to strengthen enterprise management.These suggestions will promote the smooth transformation and upgrading of Xiaomi Group in the wave of technological innovation and realize the long-term development of the enterprise.At the same time,it provides a new framework for peer companies to conduct financial analysis,and also provides new ideas for diversified development companies.