Research On Diversification Financial Performance Of W Energy Group

With the development of market economy and fierce competition,the enterprises need to choose the right growth mode and formulate a scientific development strategy if they want to take a solid position in the market.Since the 60s of last century,the diversified business has become one of the development strategies chosen by many enterprises,both including successful models and failure lessons.The study of the diversified business has always been the focus in the theory field and the business field.When enterprises adopt a diversified business,they are more concerned with the following issues:What kind of internal and external environment is needed to choose the diversified business;What kind of enterprise is suitable to choose the diversified business;How does diversification operating affect the financial performance of enterprises;How does each diversification sector perform and should it continue to invest or give up decisively,etc.This article starts from the financial angle,based on financial performance evaluation and other related theories to focus the research on the diversified business.Choosing W Energy Group as the study case,guided by the theory of diversified business and financial performance evaluation,this paper analyzes the financial performance of diversified strategy of W Energy Group in detail,trying to answer the above questions through the case.W Energy Group is a large power enterprise,whose market environment is very competitive.In the process of development,the enterprise regards diversified business as one of the preferred development strategies,and has achieved good results in practice.Based on the core theory of financial performance evaluation and diversified business,this paper starts from the internal and external environment of W energy group,and explores its diversified business.On this basis,this paper makes an analysis of the impact of diversification operation on the financial performance of the group,and then analyzes specifically the operating results of the diversified sectors from the perspective of the financial performance,makes a classification of diversified business plates of W Energy Group.It also makes a classification of diversified business plates of W Energy Group to put forward suggestions for W Energy Group to improve the financial performance of diversified management in the future.After a comprehensive analysis of the diversification strategic financial performance of W Energy Group,it is found that for a large scale enterprise especially an electric power enterprise,if there is a problem of stagnation in development,it should be proper to adopt the diversified development strategy as a more appropriate strategy because diversified operating has an important impact on the financial performance of the group.Generally speaking,diversification helps to stabilize the Group's overall financial performance,but different sectors have different effects on the group's financial performance.Some sectors are conducive to improving the group's financial performance,which need to continue to increase investment;While some sectors detract from the Group's financial performance and need to be transformed or abandoned as soon as possible.This paper is a more practical thesis,applying the mature theory to W Energy Group.The possible innovation of this paper is to utilize the method of case study,focusing on the implementation of W Energy Group's diversified operation,using the detailed data of W Energy Group to test the effectiveness of the diversification theory,and also to provide reference for similar enterprises.