Financial Analysis Of New Hope Dairy’s Development Strategy Based On Harvard Analytical Framework

As China’s economy continues to develop and enter a well-off society,people’s quality of life is improving,and the demand for food has changed from simply solving the problem of sustenance to focusing on the nutritional content of food and paying more attention to the nutritional balance of diet.The dairy industry is continuing to restructure,and in the long term,it still has room to grow and play an increasingly important role in the nutritional products market.New Hope Dairy has taken a diversified and differentiated approach in its development strategy and is representative of one of the most dynamic and innovative companies in China in just over a decade.In order to help senior management to have a clearer understanding of the company’s operational status and profitability.this paper chooses to make a comprehensive financial analysis of New Hope Dairy’s development strategy using the Harvard analytical framework.Using literature research and case study methods,this paper takes New Hope Dairy as the object of study,compares domestic and international literature on the Harvard analytical framework and development strategies,and specifically analyzes the development strategies adopted by New Hope Dairy and their impact on financial management.The Harvard framework is then applied to analyze the financial data and accounting policies of New Hope Dairy based on its development strategy,and the four dimensions of operating capacity,profitability,solvency,and cash flow.The study found that New Hope Dairy has problems with debt service pressure in the M&A expansion of the company,as well as a single financing channel and a lack of scientific investment management,which can lead to a lack of capital strength and thus hinder the scale production.Finally,in response to these problems,New Hope Dairy is given recommendations to reasonably determine the scale of investment expansion,widen the financing channels as much as possible,adjust the capital structure appropriately and adjust the corporate development strategy in response to market changes.The research in this paper is beneficial to the understanding and analysis of the industry environment in which New Hope Dairy is located and the company’s competitive strategy,and to the reasonable analysis from the company’s financial reports,which will provide more effective financial information for future strategic financial analysis.It is also hoped that it will have some significance for other dairy companies in the industry to reasonably formulate development strategies and optimize corporate financial management.