Financial Performance Rsearch About ChengDu Hi-Tech Development Co.,Ltd’ Pluralistic Strategy

Diversified business strategy has become the research hot point in academic and business communities as an important strategy during the evolution of enterprises, but there has not formed a consistent conclusion about the relationship between diversification and corporate performance. However, enterprises, especially that have fast development and the good performance, have started multi-operations. This trend shows that, with intensify of competition, various management strategies is the necessary way to sustainable development for enterprises So, I thinks that the study of diversification cannot stay on whether the diversification strategy should be taken, but should focus on what types of diversity should be taken and how to improve enterprise performance through diversification strategy. In view of the research on this aspect,there have been many empirical tests and little study of the real cases.So, in this paper,I have not adopted large scale studies to go on the deep discussion on this issue, but case-study method combined with normative study to explain the influence of diversity on business performance.I apply those theory to analyze real case, and try to find the solution and explanation for the case enterprise.This paper argues that different types of diversification have different effect on corporate performance. Categories vary for different reasons. Based on theoretical study, concerned conclusions are as follow:(1) obtaining cooperative effect is the base of diversification, and second is risk-spreading.(2) Due to some irrational motivation, enterprises tend to embark on a path of unrelated diversification.(3) Related diversification will strengthen synergies and produce positive effect on enterprise performance, and unrelated diversification can weaken synergies, increase diversification cost,and reduce the enterprise performance.(4) Diversification strategy, in and for itself, is neither good nor bad. The key is to see if it can improve business performance and exceed shareholder homemade diversified performance.Finally, this paper try to apply those theory mentioned above in the analysis of ChengDu Hi-Tech Development Co.,Ltd. It is found that non-related diversification makes ChengDu Hi-Tech Development Co.,Ltd diversification discount, undermines the value of enterprise and leads to the depression in business work performance,which is highly dependent on it’s irrational motivation. Due to Negative effects caused by the unrelated diversification, it decreases the efficiency of resource allocation and increases financial risk of enterprises. This creates low profitability, heavy financial burden. The validity of this paper is verified by analysis in theory. To the problems that exist in the ChengDu Hi-Tech Development Co.,Ltd, the author concludes several advices at last.