Performance Research On Light Assets Operation Of Jinjiang Hotels

Light asset operation is a new type of company management mode.It was born in the era of network and knowledge economy.Its core idea is that enterprises will invest limited resources into their unique competitive advantages based on the theory of value chain,like R&D innovation,brand management,marketing channels,customer relationships,etc.,and leverage to maximize the value of resources and inputs.As China's economy enters a transitional stage,light asset operations have been valued by many industries,and the domestic hotel industry has entered a stage of rapid development.The market is becoming increasingly saturated and competition is fiercer.Many brands also pin their development on light assets.In this way of operation,we hope to achieve the upgrade and transformation of the enterprise.This article takes Jinjiang Hotels' light asset operation as the research object.Firstly,it introduces the four measures of Jinjiang Hotels' implementation of light asset operation since 2013 in detail.Based on the financial data of JinjJiang Hotels,the paper analyzes the business operations around 2013,and uses the horizontal and vertical analysis of financial indicators to study the changes of the four major indicators of Jinjiang Hotels before and after the light asset operation.It was found that the light asset operation promoted the company's development as a whole,and further improved its profitability and operational capability,but it damaged the solvency of the company to some extent,and the performance of development was not satisfactory;The company's EVA value can demonstrate the decline in the ability of light asset operations to create value for the business in 16-17 years.By combining the measures of Jinjiang Hotels' light asset operation and performance evaluation results,it can be seen that the franchise and M&A strategies in light asset operations have led to the continuous growth of the company's operating scale,and the acquisition of multiple companies has become a huge driving force for the company's profit growth.The multi-brand strategy helped Jinjiang Hotels seize the market segment and further tap the market potential.However,the large amount of cash paid for large-scale mergers and acquisitions has led to an increase in long-term borrowings,which has also contributed to the decline in solvency.The reliance on distribution channels has increased sales expenses,and the poor brand integration and lack of management of franchised hotels have gradually begun to affect corporate performance.Finally,in order to improve the operation mode of Jinjiang's light assets,the corresponding countermeasures are proposed.In the future,when the mergers and acquisitions are carried out,the scientific valuation method is adopted in the early stage to evaluate the value of the target enterprise correctly,and the single cash payment method is abandoned,while selecting the combination with the stock payment to reduce M&A cost;For the construction of its own direct sales platform WeHotel and reduce the dependence on OTA;strengthen the operational supervision of the franchise storefront,tailor the hotel temperament according to different brand positioning,achieve the combination of standardized management and personalized management,establish a sound management mechanism,and Linked the franchise hotel with the performance of Jinjiang Hotels,and successfully transformed into a hotel brand management company.