Financial Strategy Analysis Of A Electric Power Enterprise Based On The Harvard Analysis Framework

The power industry is a country’s basic industry, it not only provides an important secondaryenergy for the development of the national economy, but also plays a very important role in people’s dailylives. It can be said that the development of the power promotes a country’s economic development andsocial progress, so becomes the focus of world economic development strategy. The development of anindustry in need of financial analysis to provide help, financial analysis caused great concern, experts andscholars are constantly exploring methods to use the financial analysis, financial analysis framework inrecent years come into concern. Harvard analysis is the sublimation of traditional financial analysis, theframework start with the business strategy, analysis financial data, combined with accounting analysis toidentify enterprises that may exist false results, and then using a certain method to improve the quality ofaccounting information, and on this basis to come out realistic analysis results, then predict the prospects ofthe enterprise.Put a power enterprise into Harvard analytical framework for systematic analysis of operationsand financial position. This paper first introduces A corporate profile to the strategic analysis of theenterprise as a logical starting point, introduce the power industry characteristics and A corporate strategy.A external environment, including competition in the same industry, electricity alternatives as well assuppliers and buyers were analyzed and found the opportunities and threats faced by enterprises A.Analysis A company’s internal conditions, competitive advantages and disadvantages of its existence. Acompany has developed a variety of strategic decisions by the internal and external analysis. Identifyseveral important accounts by shared a larger proportion of assets in the accounting analysis and analysis ofthe reasonableness of accounting policies and accounting estimates. Indentify A corporate financial data totruly reflect the operation of enterprises. In the financial analysis, use A corporate balance sheet, incomestatement and cash flow statement of nearly three years to do a three-year trend analysis. Through ratioanalysis and detailed financial data analysis revealed the financial risk and operating profit conditions andother issues of A corporate. In Analysis of the prospects, use strategic forecasting and financial projections for future development of enterprises A. And predicting A company has a good direction of development,play a reference role in investment management decisions and investors.A enterprise is facing social electricity consumption growth slowed down; capital marketsituation is very tense; contradiction between coal and electricity price can not be fundamentally alleviated;increasing pressure on energy conservation; wind power development speed is limited by frame analysis, Aenterprise’s development will encounter many challenges, financial risks and operating pressure. In order torespond these issues, A enterprise need to exert the effectiveness function of strategic analysis, soundfinancial analysis system to respond the prospect of operating pressure actively.