Research On G Company’s Financial Strategy Based On Harvard Analysis Framework

With the rapid economic growth,China has experienced extensive high consumption and high emissions model,resulting in severe environmental pollution.To control pollution,the central and local governments have increased financial investment,introduced multiple environmental protection policies,and taken various measures to attract social resources into the environmental protection industry.The 18 th National Congress of the Communist Party of China incorporated the construction of ecological civilization into the overall layout of socialist modernization with Chinese characteristics for the first time.In 2021,the Central Committee of the Communist Party of China and the State Council issued and implemented the "Opinions of the Central Committee of the Communist Party of China and the State Council on Deeply Fighting the Battle of Pollution Prevention and Control".The battle for pollution prevention and control shifted from "resolutely fighting well" to "deeply fighting well",and the government is firmly committed to addressing pollution issues,The report of the 20 th National Congress of the Communist Party of China clarifies the strategic task of China’s ecological civilization construction in the new era-promoting green development and promoting harmonious coexistence between humans and nature.The attention of society towards the environmental protection industry continues to rise,as it takes advantage of the momentum and fierce internal competition in the industry.However,as a heavy asset industry,many environmental protection enterprises are facing downward trends in their performance due to the slowdown of traditional incremental markets and changes in policy dividends.Therefore,urgent transformation is necessary for these enterprises.Only by clearly understanding their own and industry development status,can they optimize and adjust their financial strategies in time to seize the development opportunities of carbon peaking and carbon neutrality.This article examines the rapid development of China’s environmental protection industry and the emerging opportunities for low-carbon economic growth.The research focuses on G Group Limited,a leading environmental protection enterprise,as its case study.By analyzing the current financial strategy of G Group Limited during the transformation period using the Harvard analysis framework and incorporating financial statement data and related materials from 2016 to 2021,this study comprehensively and systematically explores the internal and external factors that impact its financial strategy from four perspectives: strategic analysis,accounting analysis,financial analysis,and prospect analysis.Furthermore,it identifies the issues in G Group Limited’s financial strategy and proposes corresponding optimization suggestions.In the strategic analysis,Porter’s Five Forces model is used to examine an enterprise’s overall strategy.The accounting analysis uses the percentage method to determine the key accounting elements of the enterprise and understand its main assets composition.In financial analysis,the financial indicator method is utilized to analyze a company’s profitability,debt repayment ability,operational ability,and development ability to obtain its financial status.Based on these three dimensions,this study analyzed the industry and enterprise prospects of G Group Limited.The research results showed that there are several problems in the financial strategy of the enterprise during the transformation period.Firstly,the relatively low profitability brings financing pressure.Secondly,the lagging transformation of business layout leads to a low level of investment efficiency.Thirdly,the efficiency of fund operation has decreased.Fourthly,the dividend distribution policy lacks flexibility.To address these issues,optimization suggestions were proposed from various aspects such as fundraising strategy,investment strategy,dividend distribution strategy,risk prevention,and corporate culture construction.These recommendations aim to improve the company’s financial performance,enhance its competitiveness,and ensure sustainable growth.