Research On Financial Strategy Of Real Estate Enterprises Based On Harvard Analysis Framework

The real-estate industry is the key industry of our national economy.It plays an important role in our national economy.With the development of our economy,the real-estate industry is constantly growing.However,the real-estate industry is also faced with opportunities and challenges while growing up.The development environment of the enterprise is becoming more and more complex.The national government has been enacting a series of tightening measures to regulate the real-estate industry,which have limited the development of the industry.Also the land policy and the finance of the enterprise have been influenced.Meanwhile,the housing enterprises have become more numerous,which arouse fierce competition among the industry.These problems have reduced the profit and financing channels.If the company want to acquire more advantage in this competitive industry and set up long-term and stable development pattern.it must solve these problems from strategic view,from which enforce and increase the core-competitiveness of the enterprise.Because the real-estate is a capital-intensive industry.It takes a significant investment of capital for land reservation,new products and construction project.it play an important role about how to choose a scientific financial strategy,which can help this industry getting out of the dilemma about investment,financing,cost and cash flow.In order to provide strong support for business decision-making,we must combinestrategy and finance.Using the accurate financial analysis of information,we canensure that this enterprise is making the right financial decisions.Harvard analysis framework can satisfy the above requirements.This analysis framework is characterized by a strategic perspective to analyze the relevant business situation.This high level of comprehensive evaluation of enterprises in which the environment,accounting policy,financial situation,scientific forecast will provide itself with more scientific and comprehensive decision support.Gemdale Group was once one of the best companies in China’s real-estate companies,but in recent years the overall size of Gemdale and the operating results in the competition have left backward gradually.This article analyze the financial strategy of Gemdale with the example of Vanke.Using the Harvard analysis framework to analyze the development ofthe two companies from 2011 to 2015.First,the article describes the basic situation of the two comparative enterprises.Under the Harvard analysis framework,this article put more attention to the strategic choice and this analysis.Through analyzing of the macroeconomic environment,we can sum up the financial strategy of Gemdale compared with Vanke.On the basis of strategic analysis,this article evaluates the quality of financial information by analyzing the accounting policies and information disclosure quality.Based on the results of enterprise financial strategy and financial analysis,combined with the past five years of operation and the implementation of the strategy,this article get the future development prospects.According to the above analysis and summary for Gemdale,the recommendations are given.Hope to provide effective suggestions of future business development,which also can give other real-estate companies revelation.