Case Study On The Effect Of Diversification Strategy On Financial Performance Of Haier Group

With the continuous development of the world economy,companies have continued to expand.Especially in the information age,exchanges and trade between countries have increased substantially.Many successful companies have begun to generate surplus resources.At this time,companies will consider continuing to conduct major business operations.Invest,expand,expand,or diversify into related or unrelated industries.Research shows that,for further development,large enterprise groups will mostly implement diversification strategies.So how is the impact of implementing a diversified strategy on financial performance?Haier Group in 1992 since the implementation of diversification strategy so far,the industry has achieved impressive results,is the world's largest home appliances company.So how does Haier Group implement diversification strategy affect financial performance?Or can the Haier Group conceal the failure of diversification while implementing the overall success of diversification?What is the motivation for Haier Group to implement its diversification strategy?How is the impact of the diversification of different kinds of implementation on financial performance?In the future development,Haier Group how to implement a diversified strategy in order to maintain the status of the home appliance industry,to further lead the market?This requires our further study of Haier GroupThis article takes the impact of its diversification on financial performance as an example,based on the analysis of capital portfolio theory,financial performance appraisal theory,synergy effects theory,core competence growth theory,and internal and external influencing factors on the implementation of diversification strategies for enterprises.The development and implementation of Haier Group implemented diversified financial performance at all stages;and analyzed the reasons for the diversified development of the enterprise from the perspectives of maintaining corporate growth,risk control,synergy,and excess internal resource capacity;and finally to Haier Group.The financial statements obtained through the analysis of indicators and the DuPont analysis method yielded easily observable data.Then based on the comparison and analysis of the data obtained,find out the reasons for the success of Haier Group and the reasons for the failure,in-depth study of Haier diversification to improve financial performance measures,to provide better solutions for enterprises to implement diversification.