G Company Operating Situation Analysis Based On Modified Harvard Framework

Affected by the impact of the epidemic,tighter real estate regulation policies,price cuts and destocking caused by new energy efficiency standards,and rising commodity prices,the domestic home appliance industry has experienced a slump for three consecutive years.As China enters the post-epidemic era,the household appliance industry is gradually warming up,the industry concentration is increasing,and the competition among the top household appliance brands is becoming increasingly fierce.The change of the top owner of the industry has attracted wide attention.G Company has been in the leading position in the industry for many years,but in the first quarter of 2020,Midea Group’s revenue scale and net profit were twice that of G Company,surpassing G Company to become a new industry leading enterprise.G Company’s operating conditions and existing operating risks have attracted wide attention.Based on this,the Harvard analysis framework is used in this paper to evaluate the internal and external environment of the enterprise as well as the accuracy and authenticity of the enterprise accounting information from a strategic perspective,so as to conduct financial analysis,forecast the future development trend,and comprehensively and scientifically evaluate the problems existing in the operation of G company.Based on enterprise core competitiveness theory,stakeholder theory and corporate social responsibility theory,this paper adopts literature research method,case analysis method,combination of qualitative and quantitative method and comparative analysis method to study the operating conditions of G Company,and draws the following conclusions.The diversification strategy implemented by G Company has had obvious effects.On the basis of consolidating the main business of air conditioning,G company has expanded its business areas.Among them,the business of green energy and intelligent equipment has increased significantly,making greater contribution to the revenue of the company.Relying on the support of national policies,G Company can further develop its own green industry.At the same time,its home appliance industry environment is more complex and severe,and the competition with enterprises in the same industry is more fierce.It has sufficient resources,pays attention to product research and development and innovation,and a number of technologies have become the industry leader with obvious bargaining advantages.However,there are still some problems such as the loss of R&D personnel and the price is higher than that of competitive enterprises without price advantage.Its accounting estimates and accounting policies are in line with the requirements of the standards,the asset management ability needs to be improved,the turnover efficiency of fixed assets and inventories declined,affecting the use effect of its assets.The operation of G company mainly depends on the accumulation of operating liabilities and profits,and the proportion of investment assets is higher than operating assets,which indicates that its market competitiveness is strong,and it is further promoting the strategic deployment of diversification.G’s revenue composition reflects its slower expansion in foreign markets.In terms of CSR fulfillment,G Company performs well and fully considers and meets the needs of stakeholders.G Company should maintain the existing awareness of CSR fulfillment and insist on disclosing relevant information of CSR.G Company will continue to develop the "online + offline" collaborative sales model.It needs to be alert to risks brought by macroeconomic fluctuations,raw material price fluctuations,intensified market competition and overseas market expansion,so as to continuously improve its market competitiveness and achieve better development.Based on the analysis of G Company’s annual financial report from 2017 to 2021,this paper finds that G Company mainly has problems such as new growth pole still not formed,slow progress on the road of internationalization,prominent inventory management problems,capital structure to be further improved and room for progress in the fulfillment of social responsibilities.In view of the above problems,this paper puts forward optimization suggestions such as adhering to the diversified expansion of the main business,steadily promoting the process of internationalization,improving the level of inventory management,continuously optimizing the capital structure and strengthening the fulfillment of corporate social responsibility,so as to provide reference for improving the operation and management level of G company and helping its healthy and high-quality development.