Research On Asset Reorganization Model Based On Life Cycle

Because the evolution of the industry life cycle shows strong integrity,it will generally experience the entire process from generation to declination.Different from the industry,the life cycle of companies often contains more incompleteness.There is a possibility of sudden disappearance at different stages of its life cycle.They may die at the stage of production or at the stage of development.Moreover,they may get rid of the fate of recession,regenerate and comes into another new life cycle.On the basis of the research home and abroad and the study of relative theories,combining the development history of COSCO's sea-control and asset reorganization,this dissertation adopts the shipping index and growth rate method to judge COSCO's industries and their own life cycle.It argues that the shipping industry has been in a recession since2008,but it has gradually turned to recovery from the end of 2015.While COSCO Haipeng has been in a period of constant decline during this period.With the help of financial index analysis and incident research method,the asset reorganization of COSCO's sea control was evaluated first in the period of recession of both the industry and enterprises,and then in the shift of the industry from tough period to the recovery period while the enterprises are still in the recession.Finally,considering the motivation of assets reorganization,it probes how COSCO SHCDA improve its own predicament and corporate performance through a reorganization of assets in different life cycles from a new perspective.Based on the case study of asset restructuring in COSCO,The following conclusions are drawn: First,when the company itself and the industry are in the life-cycle of recession,it is more suitable to divest tactical hybrid assets;Second,when the industry is turning from a tough period to a recovery period while the company is still in a recession,it is more suitable to do vertical divestiture,horizontal mergers and acquisitions.Combined with the research in this dissertation,recommended policies are put forward for related companies as follow: First,taken the trend of future development of the industry into consideration,companies in the recession period can cooperate with suitable companies.Second,companies should combine their own development strategy with corporate goals and choose the right time for reorganization.Third,the integration of enterprises after restructuring can not be ignored.