Research On X Company’s Financial Strategy Under The Framework Of Harvard

In recent years,with China’s socialist market economy gradually improving,and economic integration developing rapidly,China’s communication technology services has been moving ahead towards the direction of intensification.Enterprises hence need to face increasingly severe challenges while obtaining greater development opportunities.With the administration of financial activities and relationships within a company as its core task,which is in accordance with related laws,regulations and principles,financial management is playing an essential role in enterprise management.Besides,it is also crucial for the long-term development of the enterprise.In this paper,the author takes Company X as the research case,and by rigoriously analyzing the market environment,industry trends and the company’s financial data etc.,the author identifies problems,and proposes measures to alleviate the considerable market competition pressure faced by the company.Therefore the company’s competitiveness could be continuously improved.Under the current situation,the environment of the communication technology services is constantly changing.A proper and feasible financial strategy determines whether the company can survive for a long time.This paper examines the situation of Company X from perspectives of strategic analysis,accounting analysis,financial analysis,and outlook forecasting.First of all,with the Harvard analysis framework being the main tool and the internal and external environment being considered,the paper analyzes the company’s financial situation from 2016 to 2020 from the perspective of strategy.With the PEST method,the Porter Five Forces Model and the SWOT method,this paper analyzes the macro environment,the industry competition and the current development of the company.Secondly,the company’s solvency,operation ability,profitability,future growth and cash flow are studied by analyzing the financial data of Company X in the past five years from aspects including inventory,accounts receivable and fixed assets.Next,the problems in the excutive of the financial strategy are identified through above financial analysis and cash flow analysis,which is the current financial strategy of Company X being weak in revenue growth and profitability,decreased in operation capacity and low in efficiency of capital use.Finally,in term of these problems,the paper puts forward several constructive suggestions.Company X could only lay a solid foundation for its long-term development by improving its profitability with diversified business models,by increasing its core competitiveness and by enhancing its dividend distribution policies with greater incentive.It is an attempt to apply the Harvard analytical framework in this papar as a tool to conduct financial strategy analysis of X Company,which is a representative of the communication technology services.This attempt can serve as a reference for the sustainable development of X Company and even for the entire communication technology services.