Case Study Of Pathfinder Group's Diversified Business Based On Financial Perspective

Over the past 40 years since China's reform and opening up,the economic environment has undergone tremendous changes.The market has grown in size,the economic order has been continuously improved,and competition has become more and more large.Many industries have begun to show oligarchy competition,and a large number of outstanding enterprise groups have emerged.Not limited to the inherent business,the use of the remaining resources of the company to carry out large-scale mergers and acquisitions,the development model of the enterprise from the previous professional operation to diversified operations,it can be said that diversified management and professional management together constitute the mainstream business of modern enterprises mode,when the original business development of the enterprise reaches a certain stage,it has become difficult to maintain the high growth of the original performance,and it will inevitably face the choice of business model.In some countries,the diversification of some enterprises is very successful,which not only enhances the original The development of the business has also gained the benefits of a diversified industry,but diversification does not necessarily bring positive financial effects to the enterprise,and some enterprises not only bring benefits to the diversified industries,but also drag the original main business.How to correctly implement diversification is a question that deserves in-depth study.The TOREAD Group is the first company in the industry to implement a diversified strategy.Its business includes outdoor products,travel services,sports and other businesses.After implementing a diversified development strategy,its financial performance has undergone significant changes.This paper uses a combination of case analysis and theoretical research to conduct research on the diversified business performance of TOREAD Group.First,it introduces the process of diversification,and analyzes its economic environment to summarize its diversity.The motivation of the management,and then select the traditional financial indicators to analyze the solvency,profitability and growth ability of its diversified operations,supplemented by Tobin Q model to verify the pathfinder's diversity.After the decline,the performance declines,using the theory of residual resources,synergy,and core competitiveness to evaluate,propose to establish a coordination and integration mechanism,improve their ability to integrate resources,diversify within the scope of enterprise resource capabilities,based on core competition Improvements such as diversification of capabilities for other companies to learn from.