Financial Analysis of New Energy Vehicles under the Harvard Framework: A Case Study of BYD

Abstract

Purpose - This paper employs the Harvard Framework as its theoretical foundation, with the purpose of expanding the application of the Harvard Framework while contributing to the financial analysis of the new energy industry by providing a practical case. Additionally, it aims to identify issues within BYD and propose strategies to address them, thereby validating the practicality of the Harvard framework.
 Design/Methodology/Approach - This paper utilizes a case study approach, employing the Harvard Framework to conduct an in-depth analysis of BYD. Through an examination from four perspectives, strategy, accounting, finance, and prospects, it summarizes the current operational status of the company, and offers specific recommendations to serve the company’s growth. Additionally, the paper employs SWOT analysis to assess the situation at BYD and uses both qualitative and quantitative tools to make judgments about the company’s financial and operational conditions.
 Findings - In the context of declining annual government subsidies, BYD’s profitability has become unstable. Therefore, the company must break free from policy dependence and rely on its internal resources to achieve sustainable growth.
 Research Implications - The Harvard Framework provides a more comprehensive analysis of a company’s operations and prospects. This study enriches the theoretical scope of the Harvard Framework. Additionally, by analyzing BYD’s strengths, weaknesses, opportunities, and threats, it highlights the issues facing BYD’s development and offers specific recommendations, providing valuable insights for the development of the new energy industry and similar companies.