An Analysis Framework For Implementary Effect Of Low Cost Strategy

Based on financial information and financial(statement) analysis,this dissertation conceives an analytical framework for external users to assess the effect of low cost strategy implementation.It also enables outside analysts to judge whether the enterprise realizes its low cost strategy and what actually influences the enterprise to realize its low cost strategy.The analytical framework consists of two interrelated parts.The first part explores the external environment which involves two aspects,namely macro-economical aspect and industrial aspect.The external environment analysis is base on enterprise analysis and it helps to estimate historical achievements and make forecasts about future developments.The second part explores on how to assess the outcome of the low cost strategy using the financial analysis method.The assessment is further divided into two parts,i.e.earnings and occupied resources.This dissertation puts forward an analytical framework that combines both the macro-economy and industry with the enterprise.In addition,this analytical framework is also applied to Nine Dragon Paper Ltd.Relative to the other strategic analysis methods,this paper is featured in three different aspects.Firstly,this dissertation assesses the effect under the circumstances that the enterprise chose the low cost strategy for implementation.Secondly,this dissertation uses quantitative financial analysis to estimate the effect of the strategy implementation and the key factors.Lastly,this dissertation considers both the eamings aspect and the resource employment.