Liberal Arts and Professional Studies, York University, Toronto M3J 1P3, Canada

Keywords: Harvard Analytical Framework, Internet Enterprises, Financial Analysis.

Abstract: The Harvard analytical framework consists of four parts: strategic analysis, accounting analysis, financial analysis, and Prospect analysis. Compared with traditional analytical methods, Harvard analytical framework has great advantages. It is not only limited to traditional financial analysis but also predicts the future development of enterprises and plays a certain role in strategic decision-making. Because of this, Harvard analytical framework is widely used and trusted by enterprises. In 2013, all Internet companies experienced a cruel year. However, with the aggravation of traditional enterprises and the obvious trend of integration, Internet enterprises have been waiting for a bright future. Therefore, based on the financial situation, internal and external environmental factors and other considerations of P Information Technology Co., Ltd., from the perspective of the Harvard analytical framework, a comprehensive strategic analysis, accounting analysis, financial analysis, and prospect analysis will be carried out to analyze the company.

1.Introduction

Harvard Analytical Framework is to evaluate the companys strategic objectives and competitive strategies by analyzing its internal and external environment as well as the advantages and disadvantages of competition, to study the companys financial statements carefully, and then to predict the future development trend of the company, and to put forward corresponding improvement measures and relevant suggestions. The Harvard analytical framework consists of four parts: strategic analysis, financial analysis, accounting analysis, and Prospect analysis. Compared with traditional analytical methods, Harvard analytical framework has great advantages. Through the research of the Harvard analytical framework, the traditional management concept of enterprises can be changed and enhance their market competitive advantages.

This paper uses Harvard analytical framework to analyze P companys financial statements, points out its shortcomings in the development, and gives relevant suggestions. P Information Technology Co., Ltd., founded in 2014, mainly engaged in e-commerce business. After three years of development, P has established a business structure based on E-business acting as the core business, supported by the Internet integrated marketing and tourism business, providing a one-stop solution and integrated service structure, and has perfected the chain of continuous operation and development of the company.

2.Analysis of External Environment

Porters Five Forces Analysis Model is mainly used to analyze the current competitive environment of the industry. The recognition and evaluation of different combinations of these five competitive forces is the basis for enterprises to implement their future strategy. Using Porters Five Forces Model, the following analysis can be made of P Company:

2.1Threats from Potential Entrants

At present, the main potential entrants of e-commerce enterprises are threatened by software service enterprises and traditional production service enterprises.Software service enterprises have certain technological advantages compared with ordinary e-commerce enterprises. The correct development of systems and the correct guidance of business models can pose a threat to e-commerce enterprises. Software service enterprises have certain technological advantages compared with ordinary e-commerce enterprises. The correct development of systems and the correct guidance of business models can pose a threat to e-commerce enterprises. Compared with the traditional production and service enterprises, because of the low entry threshold of e-commerce enterprises, some enterprises have been able to enter the field of e-commerce by themselves. Therefore, e-commerce enterprises have a greater threat from potential entrants.

2.2Competitiveness of the Industry

From the current situation of the industry, the competition of Internet enterprises is in the shape of a pyramid. At the top of the tower are industry giants, such as Alibaba and Ctrip, which rely on the mastery of means of production and abundant social resources owned by enterprises. They control most of the profits and resources of the industry. Most e-commerce enterprises are at the bottom of the tower. They have a large number of enterprises and few market resources. Especially in a policy-oriented and national industrial transformation and upgrading environment, Internet e-commerce enterprises have entered a relatively rapid growth stage, so, at present, e-commerce enterprises are facing great competition pressure and risk of elimination.

Vendors bargaining power: The suppliers of e-commerce enterprises are mainly software enterprises. Because e-commerce enterprises hold most of the means of production, and the software industry is also in fierce competition, there are many suppliers to choose, so the bargaining power of suppliers is relatively weak.

2.2.1Threat of Alternative Products

From the perspective of the e-commerce industry, e-commerce enterprises have a strong ability of technological innovation, and even from a long-term perspective, the e-commerce industry plays an irreplaceable role in the competition of various industries, so the threat of alternative products is relatively small.

2.2.2Bargaining Power of Product Buyer

In the Internet e-commerce industry, there are many enterprises, diversified forms of products and services, and products are updated and eliminated quickly. Therefore, from the perspective of the bargaining power

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