Financial Analysis And Application Of EVE Based On Harvard Analytical Framework

A clear plan of the embargo of the traditional internal combustion engine was on the agenda after the closing of the Hamburg G20 summit on July 8,2017.On the domestic front,the Ministry of Industry and Technology has initiated the relevant research.The rapid development of new energy vehicles promotes the growth of power lithium battery business.With this background,the power lithium battery business expansion rate is significantly accelerated,while the structural overcapacity problems gradually emerge.As one of the leading enterprises in lithium battery industry in China,Energy Very Endure(EVE)is facing the severe internal and external challenges in an increasingly competitive environment.Based on this,this paper analyzes the business strategy and financial control situation of EVE with the Harvard analysis framework in terms of the power lithium battery business,which is conductive to not only the valuable reference for those enterprises and individuals who focus on power lithium battery industry,but also the positive adjustment of business strategy,financial control and specific measures for the enterprise.On the basis of the Harvard analysis framework,this paper centering around the financial analysis,analyzes the enterprise combined with strategic and accounting policy analysis.In this paper,the current opportunities and challenges faced by EVE are in deep analysis.Furthermore,it has also put forward targeted opinions about the company's business development and financial strategy.With the help of the Harvard analysis framework,it can be concluded that the EVE,who focus on the lithium battery business,implements the surpassing strategy with direction of power Li-ion battery.However,there have been deterioration of the quality of earnings,decrease of operational efficiency and other shortages of funds around EVE,which tends to be great disparities in strength with leading enterprises.In order to ensure the implementation of the surpassing strategy and put the power lithium battery business into the company's new performance growth,EVE should expand the quality of customer resources,strengthen the management of operating capital and strengthen the cash recovery.Moreover,it is beneficial to reduce costs of raw material and promote the shareholders to increase capital injection for the company's health and rapid development.