A Study On Financial Performance Of WH Group Internationalization Strategy

With the development of economic globalization,more and more enterprises began to enter the international market and join the global competition.Accessing the WTO has more further expanded the degree of opening to the outside world,which is both an opportunity and a challenge for Chinese enterprises.On the one hand,it is more conducive for Chinese enterprises to participate in the process of world economic globalization;on the other hand,it also need to bear the impact of foreign enterprises on the domestic market.Chinese enterprises should grasp the opportunities to meet the challenges and constantly improve their own capabilities to actively explore the international market.After analysing the complex competitive environment,enterprises find their own development path of internationalization.In recent years,more and more Chinese enterprises go abroad,and as the leader of the meat products industry,WH Group has begun to officially step into the international market.Based on WH Group as the research object,this paper firstly combed the relevant theories relationship of internationalization strategy and performance.Because WH Group is a cross-border m&a as the main line,launched a series of international activities in the development process of the synergistic effect were taken into account and construct the analysis framework of WH Group internationalization strategy.Then,after analyzing the international development environment of WH Group,the specific internationalization strategy implemented by WH Group is taken as the entry point to analyze the motivation and implementation process of each strategy,and 2012 is taken as the time node to reflect the financial performance of the enterprise by combining relevant financial indicators and non-financial indicators.Through analysis,it is found that the implementation of international m&a strategy by WH Group is conducive to the enterprises rapidly into the international market.Although there will be some financial risks in the initial stage,after the implementation of m&a strategy,enterprises gradually generate synergies through integration and the risks are effectively controlled.WH Group brand internationalization strategy to expand the market share and stabilize the domestic industry leading position.The WH Group gain well-known brands of Europe and the United States area through m&a,which have certain positive effect on domestic Shuanghui brand,the brand value and market share in non-financial indicators performance well,part of the growth financial index effect;WH Group's industry chain vertical integration strategy improve the industrial chain of the enterprise and enhance the enterprise competitive advantage.Through WH Group mergers and acquisitions smithfield compensates for the upstream enterprise development,and other matters of merger and acquisition has strengthened the integrated development of European and American area subsidiary.At the same time,WH Group pork imports not only ensure the quality of products,but also improve the profitability of enterprises.After a few years,the WH Group's overall economic situation improved and maintained a stable level.Generally speaking,after WH Group formally entered the international market through the merger and acquisition of smithfield,although some indicators in the initial stage of the merger and acquisition don't showed satisfactory benefits,the enterprise began to step into the normal development after the integration and the synergy effect.The further development of international mergers and acquisitions in the past two years also shows the trend that WH Group continues to steadily expand the international market.Therefore,in general,the implementation of internationalization strategy by WH Group improves the financial performance of enterprises to some extent.At the same time,I also hope that the case study of WH Group can bring relevant reference experience to the internationalization development of other enterprises.