Research On The Implementation Path And Financial Effect Of The Reconciliation Strategy

Under the influence of the wave of diversification,many enterprises in our country have gradually demonstrated the disadvantages of excessive diversification.Therefore,many domestic companies have changed their development strategies and began to implement a refocusing strategy that focused on the development of their main business.In this paper,a case study method was used to conduct a detailed study on the implementation process of Hengshun Vinegar's refocusing strategy,and to judge the financial effects of Hengshun Vinegar industry after the refocusing.The study found that Hengshun Vinegar used the product matrix-market matrix method to determine the timing of the refocusing process.After determining the core business,it adopted the shrinking expansion strategy of refocusing: the use of a shrinking re-entry strategy for non-core business processing.The expansion of the core business with the retreat strategy.The study further found that the refocusing strategy improved the financial performance of Hengshun Vinegar and increased its market value.The research in this paper revealed the specific implementation path of the case company's refocusing,and enriched the research on the relationship between refocusing and corporate performance,and had a reference value for other companies to implement the refocusing strategy in the future.