Research On The Diversification And Industry Performance Of CIMC

Since the concept of “diversity” was first proposed by the American strategic management guru Igor Ansoff in 1957,the academic community has initiated an upsurge of research on the relationship between diversification and business performance.With the continuous increase in the international flow of world trade,investment,and financial capital,the world gradually moves toward informatization,the development of the world economy,and the integration of markets.The competition among enterprises is also intensifying,and companies expect to realize enterprises after becoming bigger and stronger.The goal of maximizing value has prompted diversification strategies to gradually become the main means for companies to expand their scale.In the 1990 s,diversification was carried out in full swing in China,while European and American companies have returned to specialized operations.Although China's enterprises have vigorously implemented diversified operations,the results are different.How to use diversification to enhance corporate performance and increase the value of the corporate market is worth exploring in depth.The diversification of CIMC started earlier.What are the motivations for implementing its diversification strategy and whether diversification has an impact on company performance? Whether it is a positive experience or a negative lesson and what diversity should be adopted by CIMC in future development? Management to maintain long-term competitive advantage,these issues have greater research value.This thesis first elaborates the research background,significance and methods of the thesis,and sorts out the theories and literature related to diversification and performance;then it analyzes the diversification situation of CIMC,which focuses on analyzing its 2007-Trends in the degree of diversification during 2016 and motivations for diversification;Finally,using the financial accounting data of CIMC in the past ten years,we studied the impact of the implementation of the diversification strategy of the Group on its corporate performance,from the financial status and the corporate market.The analysis of the diversification performance from the three perspectives of value and diversification business motives led to the effect of diversification operations on the business performance of CIMC,summarizing the successful experience of CIMC in the diversification implementation process.Failed lessons,and made reasonable suggestions to enable it to better diversify its operations in the future,and at the same time,it can also provide reference for the implementation of diversified operations of listed companies in the machinery and equipment category.