Research On The Relationship Between Diversification Strategy And Profitability Of Food Enterprises

As one of the foundations of the national economy,food plays an important role in supporting the development of various undertakings and stabilizing the society.China's food industry is developing rapidly and the competition is becoming increasingly fierce.The implementation of diversification strategy has become an inevitable choice to improve the profitability of food enterprises.Therefore,it is self-evident to analyze the relationship between the diversification strategy and the profitability of the enterprise,to judge the effect of the implementation of the diversification strategy and to adjust the strategy in time,and it is self-evident to the future development of the enterprise.The article first summarizes the current status of the food industry,and then takes consistent food as an example,briefly introduces the basic information of the enterprise and the motivation to implement the diversification strategy,and introduces the implementation of the harmonious food diversification strategy from the time dimension,and intercepts the key years in 2013 and 2015.Then the DuPont analysis method was used to compare the profitability of the harmonious food after the diversification strategy and the return to the main industry.It was found that the net asset yield fell before and after 2013,while the net asset return rate back and forth before and after the 2015 was rebounded,and the changes in the various factors were analyzed.Finally,the reasons for the failure of the harmonious food diversification strategy are analyzed.Based on the specific failure factors,the amendments to the harmonious food diversification strategy are proposed.Through a careful analysis of the diversification strategy of consistent food,the paper finds that the diversification strategy implemented around 2013 has a bad impact on the profitability.At the same time,according to the problems of harmonious food in the diversification strategy,we put forward some suggestions to continue to strengthen the construction of e-commerce platform and information platform,to change the direction of diversification strategy,to make full use of its own advantages,to attach importance to the development of new products,and to adhere to the management innovation.