Financial Strategy Study Of Hbis Co.,Ltd Based On Harvard Analysisi Framework

The iron and steel industry is an important basic industry in the national economy,and is an important reflection of the strength of a country’s comprehensive national power.China’s steel industry has a huge impact on the development of the national economy,while also playing an active role in the development of the world steel industry.However,in recent years,as the global economy has weakened,the new coronavirus epidemic rampant,the international steel market prices are low,steel demand continues to decline.At the same time,as China’s economic growth slows,the demand for steel in the domestic market has also decreased significantly,and the overcapacity is relatively serious.Steel companies are facing great challenges,and most of them are already in a loss-making situation.In recent years,there are problems in the steel industry,such as overcapacity due to uneven supply and demand,decreasing steel profits due to rising raw fuel prices,and increasing environmental protection costs for steel enterprises due to the "double carbon" policy.To address these problems,we applied the Harvard analysis framework to an actual enterprise,HSC,based on the data in the consolidated financial statements in the annual reports of the enterprise from 2017 to 2021,as well as a horizontal comparison of the operating conditions of Ansteel,Shougang and Shagang.By further discussing the specific analysis methods in the Harvard analysis framework in four dimensions: strategy,accounting,finance and prospect,deepening the study of the practical application of the Harvard analysis framework,gaining an overall understanding of the enterprise’s position in the market competition,and evaluating the future profitability and development prospect of the company,we found that the problems affecting the development of HSC mainly include The problems affecting the development of HSC include the large proportion of fixed assets to total assets,high financial risk,poor efficiency of asset utilization,slow inventory turnover,and weak profitability,etc.In turn,the following five suggestions were made:(1)improve capital structure,strengthen capital management and improve asset management efficiency;(2)practice the new development concept and promote green and healthy development of the enterprise;(3)strengthen technological innovation and accelerate product transformation and upgrading;(4)pay attention to talent training;(5)explore potential customers and markets,and also hope to have some reference for other steel enterprises.