Research On Financial Condition Of CADX Automobile Sales And Service Co., Ltd

With the rapid development of China’s automobile industry, the domestic car sales have been consistently ranks first in the world,4S car shops also become the mainstream mode in today’s marketing services industry. In order to grab a bigger share of the market, consolidate the market position, the OEMs have to expand capacity and expand sales channels massively, domestic cities were brought together a large number of 4S car shops in different of scale and level. Because the excess capacity in the factory was released constantly and brand 4S car shops’internal and external competition, under the double pressures of competition, a large number of 4S car shops produced the industry-wide losses, they are facing unprecedented pressure and competition. To analyzing the specific reason in loss for the 4S car shops, seeking out strategy effectively, promoting the benign development of the industry, it is of great significance for investors and operators of 4S car shops.CADX is one of the difficult companies of Changan Ford 4S car shops. Firstly, this article has carried on the earnest analysis in macro environment to the company by PEST model. Secondly, using Porter’s five model to analyze the company’s industry competition pattern. Thirdly, utilizing SWOT model to analyze the internal and external business environment. At the same time, on the basis of the financial statement data for the past five years of the CADX company, using methods such as comparative analysis, structure analysis and project review to analyze the company’s business situation. Using ratio analysis and Du Pont financial analysis system to evaluate the comprehensive operation ability of the company.Through the comprehensive research on competition environment and financial conditions to the company, there are two aspects of the proposal to the CADX company. From the point of view of rational thought, the first one is that CADX company shall bankruptcy and liquidation to reducing further investment losses; From the perspective of continuing operations, the other advice is that CADX company can adopt diversified development strategy, and implementation of transverse joint, network development and differentiation competitive strategy to create a good business environment. Through the adjustment of assets and liabilities structure, reduce historical baggage, and actively carry out marketing value, honest marketing, word-of-mouth marketing campaigns. From the aspects of cost control, inventory management, cultural construction, strengthening the internal management. Through a comprehensive and the depth of the vertical adjustment, to create conditions to help the company go out of difficulties and run into the healthy development track.