Financial Analysis Of Light Assets Enterprises Based On Harvard Framework

With the coming of data-driven age,many large-scale enterprises in the economic transition period have been hit by unprecedented impact.As the "Internet+" becomes the national strategy,the Internet company is in the reverse direction,the number of enterprises is growing,and as of December 2017,the total number of Internet enterprises already listed inside and outside China and up to 102,small and medium-sized e-commerce enterprises are numerous,and the momentum of development is very rapid.China’s current economy is at a transition,according to the Party’s 19-year work report The development mode,optimize the economic structure,change the growth power of the attack period,the development of the Internet has a very important impact on the economic transformation of our country.Internet companies generally take intangible assets such as technology,innovation ability,brand value as the core profit point,which can play a strong leverage effect,accord with the characteristics of light assets and have obvious advantages,which provides a new direction for the transformation of enterprises in China.However,its development path is very different from that of traditional heavy assets enterprises,and it still needs to be further explored.Otherwise,there will be a "flash in the pan" of small and medium-sized Internet enterprises such as ofo and mobike,so,It is urgent to carry out financial analysis to the enterprises with light assets model.Proper analysis methods and means can help enterprises to play the role of prevention and control.In this paper,Baidu is chosen as a case enterprise because it is the earliest set up of Internet enterprises in China,and rely on the characteristics and advantages of its light assets model to continue to develop.Successful expansion from a single search engine business to a comprehensive Internet company is still in the leading position in the industry at the present stage,so it has very important representative significance in the light assets industry.The main contents of the article are as follows:First of all,this paper has carried on the basic research from the background introduction,the literature research,the train of thought analysis,the conceptdefinition and the theory foundation and so on.The background introduces the macro-economic background of the writing,the risks faced by the traditional enterprises under the current economic situation and the new ideas for the transformation and upgrading of the enterprises with light assets.Literature research mainly from the domestic and foreign aspects of light assets model and Harvard framework related literature classification and review;The research ideas and methods are an overview of the writing structure and logic of this paper,and the related research methods are summarized.Basic Department of related Concepts and theories This paper mainly defines the profit model of light assets and the Harvard framework analysis method,and introduces the basic theory of financial analysis,the theory of value chain and the theory of smile curve.Second is the case analysis part,which is also the main part of the article,from the light assets industry background brief introduction,selected the representative significance of Baidu company,and elaborated the development of Baidu company and the financial characteristics of light assets,Then the Harvard framework applied to Baidu for analysis.The PEST analysis method and SWOT analysis method are used in the strategic analysis of Harvard frame,and the accounting analysis is mainly about Baidu’s balance sheet,profit statement and cash flow statement,and the accounting analysis is mainly based on the analysis of the balance sheet,profit statement and cash flow statement of Baidu.Financial analysis is mainly from four aspects: solvency,profitability,operational capacity and comparison of the same industry.The level is mainly from the future of potential threats and opportunities for the two angles to carry on the analysis.In the end,it is concluded that Baidu should make some adjustments at the strategic level through the analysis.On the one hand,the long-term public praise of the enterprise should be guaranteed,and then the technology level should be applied to ensure that the company is based on the fast-changing Internet industry.At the accounting angle and financial level,Baidu should pay attention to the improvement of its short-term debt-paying ability,carry out the scale expansion and avoid unnecessary waste of resources.For light-asset enterprises,most of them are in thecritical period of diversified development,but it is important to pay attention to the investment strategy which is suitable for itself,so as to avoid the blind increase of the capital cost or the debt service risk.At the same time,light resources Production enterprises should focus on R & D innovation level and maintain its own technical advantages.There are two major breakthroughs and innovations in the process of writing in this paper.The first is the innovation of the perspective of research.At this stage,the focus of the research on light assets is on the transition from heavy assets to light assets.While neglecting the financial analysis of the enterprises which have the characteristics of light assets,this paper enriches the literature research in this respect.Secondly,the combination of research method and content is relatively novel.In the past,the research on light assets enterprises mostly focused on a single aspect,but the introduction of Harvard framework to carry on the comprehensive and systematic analysis of light assets enterprises at present is less,this article has carried on the organic combination of the two,to the future light assets enterprises,the article has carried on the organic combination to the future light assets enterprises.The financial research of the industry has made certain exploration.