The Analysis Of YD Company's Diversification Performance

At present,alcohol manufacturing industry is facing fierce competition in the market,industry concentration is increasing.For smaller alcohol manufacturing enterprises,diversification is the important way of breaking through development bottleneck.But diversification is not applicable to every enterprise,some enterprises realize leap-forward development by adopting diversification,some enterprises have failed because of diversification.Academia doesn't reach consensus for the effects on enterprise performance of diversification.So the effects of diversification on enterprise performance should be analyzing differently according to different enterprises.The thesis considers YD Company as a case study.Firstly,this thesis discusses the domestic and foreign scholars' relevant research results on the effects of corporate diversification performance,and then expounds the theory of enterprise diversification,which lays a theoretical foundation for later in-depth analysis of YD Company diversified management performance.Then,this thesis introduces the basic situation of YD Company and diversified development situation;study the type of YD's diversification and diversified degree of the company.Then this thesis uses the methods of comparative analysis and data analysis,combined with the motivations and reasons of enterprise diversification,and analyzes qualitatively and quantitatively the YD Company diversified financial performance from the aspects of risk,profitability,development ability and operation ability.At the same time,this article also analyzes YD Company's diversified business of each unit one by one from the viewpoint of gross margin.In addition,this thesis studies the company diversified performance from the perspective of enterprise value evaluation,including the Tobin's Q value and economic value added.According to analysis results,we put forward the cause of YD Company diversified business problems.Finally,we present corresponding constructive suggestions aiming at these problems.Through the analysis above,we find that the diversification of YD Company fails to improve the business performance of enterprises effectively and do not achieve the desired effect.We come up with some suggestion,including make scientific development planning,exert different business synergies,grasp the degree of diversification and improve the core competitiveness.Through the study of this thesis,I hope to improve the performance of the diversification of YD Company and business performance,and if possible I also hope to provide reference for similar diversified enterprises.