Performance Analysis Of Diversified Operation Of W Enterprise

In the 1920 s,the western capitalist economy rose the upsurge of diversification and reached its peak in the 60 th century.Many enterprises have achieved great success by adopting diversification strategy.In the late 1990 s,the concept of core competence was widely accepted.People began to reflect on the effect of diversification.Many large companies have returned to their main businesses,forming a "return to core" trend.Whether diversification strategy improves or reduces the performance of enterprises is a topic that scholars often discuss for a period of time.In fact,there are both success and failure examples of enterprises implementing diversification.For example,TCL,which initially engaged in the production of audio tape,expanded its business to telephone,television and other fields,and actively explored markets such as Vietnam.Its successful diversified operation helped TCL become a pioneer of international enterprises.However,LETV is blind to expand its diversified business strategy under the condition that its main business online video is not profitable,and finally fails due to the break of the capital chain.On the basis of combing the domestic and foreign literature on diversification,this paper selects W company,which adopts diversification strategy in China's food and beverage industry,as the case study object,reviews its diversification process,measures its diversification degree with relevant indicators,analyzes its motivation for implementing diversification strategy,and selects the company that maintains professional operation in the same industry As a reference,the paper analyzes the performance of W company since the implementation of diversification strategy from two aspects of financial indicators and enterprise value.It is found that in the process of continuous diversification exploration,W company fails to effectively improve itsperformance,analyzes the reasons for the confusion of diversification layout,the lack of long-term clear planning,and the neglect of the cultivation of core competencies.It is suggested that enterprises should first enlarge and strengthen their main businesses,formulate reasonable long-term planning in combination with their own advantages,and carefully grasp the diversity The degree and type of resource diversification should be avoided.