Financial Optimization Research Of WH Group Based On Harvard Analysis Framework

As an important part of home appliance industry,kitchen appliances have experienced a golden development period in the past decade in China.However,with the acceleration of the transformation and adjustment of China’s industrial structure,as well as the formulation and implementation of real estate regulation and control policies,the kitchen electrical industry is also undergoing a profound change,all production enterprises have generally encountered severe challenges and unprecedented opportunities.Under such circumstances,how to improve the financial management level of each major enterprise to further improve its operating performance and rapidly expand its market share has become an urgent practical problem to be solved and has also attracted the attention of decision makers of major enterprises.In view of this,using combine theory with practice research,comparative research,case study and other methods,select WH group as the research object,because it is a leading enterprise in the industry,and carry out financial analysis based on the Harvard analysis framework,then put forward financial optimization suggestions to improve its overall level of competition in the industry.The advantage of Harvard analytical framework is to start from four dimensions of strategy,accounting,finance and prospect,which can reflect the financial situation of an enterprise as a whole and effectively remedy the inherent deficiencies of traditional financial analysis.According to this basic framework,first of all,from the strategic dimension,according to the current macro environment and industry environment,the advantages and disadvantages,opportunities and threats of WH group are analyzed.Secondly,from the accounting dimension,focusing on WH group notes receivable and accounts receivable,inventory,fixed assets three accounting subjects,the amount changes and the applicable accounting policies are analyzed.Thirdly,from the financial dimension,through the horizontal and vertical comparison of the balance sheet,profit statement,cash flow statement and related financial ratios,analyzes the current financial situation of WH group.Finally,from the perspective of the future,further analysis of WH group’s future diversification,challenges and risks.On this basis,in view of the current major financial problems,WH group should formulate corresponding optimization strategies.In the strategic dimension,we should unswervingly take the diversification strategy to disperse and reduce the risk of production and operation.At the same time,we should actively expand the market share of all kinds of products through a variety of marketing strategies.Of course,all of these need to be backed by scientific and technological innovation,and WH group must increase investment in product research and development;In the accounting dimension,we should take effective measures,means and systems,constantly improve the management level of accounts receivable,and improve the inventory management system;In the financial dimension,we should optimize the capital structure,strengthen cost and expense control,and improve the efficiency of asset utilization.In the prospect dimension,WH group should implement the strategy of product differentiation to strongly support its diversified business strategy,and try to improve the brand effect of products to meet the challenges and risks at home and abroad.This study expands the application boundary of Harvard’s analytical framework,not only provides necessary reference for WH group management to make the next decision,but also has important enlightening significance for other kitchen electrical appliance manufacturers.