Empirical Study On The Influence Of Dairy Companies’ Different Growth Models On Their Performance

Although dairy industry of china started comparatively late, it has already become the world’s third-largest dairy state due to its rapid development. The developing of dairy industry not only reduces the pressure on employment to improve national economy, but also promote the development of other industries, such as livestock and feed industry. With the rapid development of industry, the supply of dairy products on market gradually achieve a balance from a shortage, and the supply of raw milk even rise to excess, dairy products degrades itself from "high-end consumer goods" to "mass consumer goods". Negatively affected by dairy safety scandals in recent years, domestic dairy industry suffers from consumer confidence crisis, the foreign brands began to seize the domestic market, coupled with rising cost of domestic dairy production, part of dairy companies are facing bankruptcy, reorganization or merger. The enterprise can obtain the sustainable competitive advantage while enterprise growing to improve the performance under such a complex and competitive market environment. So, exploring the impact of the dairy business growth model for corporate performance has extremely important realistic and far-reaching meaning.If a company wants to develop, it must first decide its development direction which is based on the business strategic that selected by senior managers. With the growth direction, the company could decide its goal. After this, what a company needs is the capital resources to support this goal. How to get the capital resources is based on the selection of strategic and financing ways. The growth model of dairy companies that developed by this research is made up of two dimensions: strategic selection and financing way. This research selected 115 dairy companies for empirical analysis, based on the multiple linear regression model and structural equation model, using SPSS and AMOS, we compared the performance of different companies due to the selection strategic and financing way. Finally we try to find out that if different strategic selection and financing ways have influence on company performance, what kind of influence they have and how they influence the performance.Through empirical research, we draw the following conclusions. The first one is that different choices of strategies lead to different performance of dairy enterprises. The vertical strategy adopted by dairy enterprises made the best of performance, followed by horizontal strategy, and the worst of diversification strategy. Secondly, Different choices of financing ways made the performance of dairy enterprises not the same. Specifically, the use of external financing way had a better enterprise performance than the use of internal financing way. In addition, enterprise growth model combined with different strategic options and different financing ways produced different impact on the performance of dairy enterprises. The optimal growth model of dairy enterprises is the use of the combination of vertical strategy and external financing way. According to the analysis of the impact of financing ways and strategic options on corporate performance, business characteristics, strategic choice and financing ways had a positive and direct effect on the performance of the dairy industries. Meanwhile, there is a positive and direct impact between strategic options and financing ways too. Through the interaction, financing ways and strategic choices can affect the performance of the dairy business indirectly.