Research On The Relationship Between Diversification Strategy And Corporate Performance Of Wine-making Enterprises

Faced with fierce market competition,companies are constantly making strategic adjustments in order to seek expansion.It is difficult to bring about the expansion of the scale of a single operation,and the diversification strategy can effectively avoid the operational risks and has been widely adopted by many companies.However,looking at the development model of Western companies,it was found that some companies that implemented diversification strategies not only failed to improve their business performance,but eventually went bankrupt or even closed down.Therefore,after experiencing a wave of diversified madness,European and American countries have revisited the feasibility of the strategy and rationally returned to a specific production mode.Whether or not diversification can bring synergies to companies,or will cause over-investment in enterprises,scholars have different opinions.After witnessing that the diversification strategy is not feasible,companies in Western countries have reduced their business units,rebuilt their core businesses,and implemented specialized operations.China's emerging market economy is preparing to begin the prelude to diversification.Therefore,after witnessing the failed attempts of Western countries,whether the implementation of this strategy can bring about an improvement in the performance of Chinese enterprises is worthy of our research and discussion.Looking at the literature at home and abroad,there are many literatures related to the study of diversification strategies and corporate performance.However,the literature on winemaking companies is relatively rare.In recent years,China's wine industry has maintained a healthy and steady development trend,but it is also facing a severe test.Therefore,it is of great practical significance for breweries under a highly competitive market to diversify their operations to effectively diversify their operational risks and improve their performance.This article combines the relevant theories of diversification and corporate performance proposed at home and abroad,and uses the annual report data of 18 liquor listed companies in 2010-2016 as a sample to measure the degree of diversification of enterprises using the Herfinda index,and according to the H value.The size of the company's diversification strategy is divided into highly diversified,moderately diversified and low diversified.Corporate performance is measured by both short-term performance and long-term growth.Among them,five core financial indicators were used for short-term performance,and two key factors were proposed through the principal component analysis method.This article is named as overall profitability and unit profitability.Long-term growth is mainly attributed to total asset growth rate and operating profit growth rate.Measure,and use a one-way analysis of variance method to analyze the operational performance of the breweries.The empirical results show that the diversification strategy affects the business performance of the company to a certain extent,among which the short-term performance has a significant effect.The highly diversified company has a higher unit profitability,but there is no significant influence on the long-term growth of the company.Although there are certain differences in the performance of various companies,it is impossible to judge whether it is because the diversification degree of the company is different,and it needs to be different according to the specific circumstances of the company.Finally,according to the results of empirical analysis,combined with the current business situation of the company,the brewing companies have put forward corresponding countermeasures and suggestions.