The Cause And Countermeasures Of Financial Crisis Of LeTV Group

With the gradual integration of the global economy,the operating environment of most companies has become increasingly fierce.In order to be able to occupy a more important position in the market and obtain more benefits,many companies often choose to meet their own needs through a diversification strategy.Diversification expansion through new fields,new businesses,and mergers with other companies,and with the synergies it generates,it will expand the overall business scale of the company and enhance its profitability to achieve greater market competition.The ultimate purpose of the force.When a company wants to implement a diversification expansion strategy,it should have relevant supporting management capabilities and strong support for adequate cash flow.Once the expansion speed is too rapid and the expansion strategy is blindly carried out,companies may be caught in a financial crisis.Since 2016,the Levision Group's financial crisis under its diversified expansion strategy has attracted the attention of all sectors of society.First of all,introduce the background of the Le TV Group,and show the Le TV Group in two phases of diversification and expansion.Concisely describe the financial crisis situation and features that Le TV Group currently faces.Based on the financial analysis of the Levision Group's listed and unlisted sectors,combined with its analysis results,it was found that its internal factors are too dire for the Lexus Group's diversified expansion.The excessively fast speed resulted in the expansion of the internal capital when the expansion is not complete,and The control ability of cash flow is too poor to deliver funds for large-scale business expansion in a timely manner.At the same time,Le TV Group has no financial risk early warning mechanism and independent risk management department.The external factor is that under the background of the 21 st century,various companies are looking for new business models,which has led to the entire market began to compete for the network of exclusive copyright.And because China has begun to take a path to reform,the capital market has become more cautious.Le TV Group can break away from this financial crisis through continuous financing,retention of core business,establishment of risk management departments and other methods.At the same time,it hopes that this case can provide reference for other companies to prevent financial risks during diversification expansion.