A Study On Diversification Of Real Estate Enterprise

With the increase of global trading,investment and international flow of capital,the world competition is moving towards into information,followed by the global integration of the economy and market and the intensified enterprise competition.Enterprises are expected to achieve the goal of maximizing corporate value after becoming bigger and stronger,and the diversification strategy has gradually become the main means for enterprises to expand their scale.After years of vigorous development,China’s real estate industry has gradually become an important pillar industry.However,in recent years,with the impact of national macro-control policies and market downturns,the real estate industry seems to have passed its golden age,and leading real estate companies have turned to diversified operations.Based on this background,this paper studies how Greenland Holdings and Huaxia Happiness implement diversification strategies and the impact of diversification strategies.By comparing and analyzing the differences between the two listed companies’ diversification strategies,it is found that the related diversification and non-related diversification have different effects on enterprises.On the basis of combing the existing literature,this paper studies the above problems through descriptive statistical analysis and case analysis.Firstly,through descriptive statistics,we analyze the diversified behaviors of A-share listed companies from macro analysis,and summarize the characteristics of traditional main industries,industry choices,diversification methods,financial status and corporate performance,and summarize the general rules.Then,through dynamic investigation of the behavior of specific enterprises to implement diversification strategies,we analyze their diversification motives,observe the diversification implementation process,and examine the effects of diversification,test the existing diversification theory,and extract important factors affecting the diversification effect.Summarize the feasible mode of diversification.The theory examines the corporate behavior in the real context,and tests the theoretical research with the reality.Through the research of this paper,it is found that:(1)diversified operations,especially non-related diversified operations,are of certain help to enterprises that change their own business models and change their own development status.(2)However,for companies with relevant diversification in the same industry,Non-related diversified companies have lower performance.(3)From the actual case,this paper summarizes three factors that have an important impact on the effectiveness of diversification:the use of surplus resources,the choice of industry and target enterprises,and continuous investment and effective integration.