Case Study On The Refocusing Strategy Company Value Of ShunXin Agriculture

Since the reform and opening up,China's economy has developed rapidly,many enterprises adopt the diversification strategy to make the scale expand rapidly,thus a large number of diversified enterprise groups emerge.However,the expansion of diversification makes some enterprises unable to effectively allocate management,capital and other resources,resulting in management chaos and resource waste,ignoring the development of core competitiveness,which damages the profitability of enterprises in the long run.In March 2018,General Secretary Xi said that all successful enterprises that want to reach the top of their career should focus on their main business without any distractions.During the two sessions in 2019,Xiao Yaqing,head of the state-owned assets supervision and administration commission,said at the meeting that the central government will increase strategic planning and management of central enterprises,strictly check the investment in non-main industries,and further promote the concentration of various elements towards industry and main industries.This also means that in the future,more and more enterprises will use the refocusing strategy.In this paper,Beijing Shun Xin agriculture was selected as the research object.In 2014,Shun Xin agriculture clearly made major strategic adjustment,started to formally implement the strategy of refocusing on nuclear development,focused on the two main businesses of wine and meat,and gradually divested other non-core businesses.Based on the above background,the core research question of this paper is: what is the impact of refocusing strategy on enterprise value?Different from previous research is the selection of refocusing or big duty performance for empirical research,based on the perspective of optimal allocation of resources,through the form of a single case of refocusing strategy study of the impact of enterprise value,analysis of refocusing strategy path,the function of enterprise value combined with the data for the agreeable lei agriculture to carry out the strategy of refocusing the impact on the enterprise value for quantitative analysis.This paper firstly introduces the literature review and theory of refocusing,and then takes Shun Xin agriculture as the research object to introduce the general situation of implementing refocusing strategy in Shun Xin agriculture.This paper analyzes the background,measures and specific process of the refocusing strategy of Shun Xin agriculture,analyzes the motivation of the refocusing strategy of Shun Xin agriculture,determines the core business and long-term goals,and then analyzes the rationality of the specific implementation method.Secondly,from the perspective of the optimal allocation of resources,this paper analyzes the ways to improvethe management efficiency,optimize the use of capital,optimize the product structure,promote the national market,and improve the industrial chain.And through the horizontal and vertical comparison of indicators,quantitative analysis of the impact on the value of the company.Finally,the paper summarizes the conclusions and research findings,and puts forward some Suggestions for future refocusing enterprises.Based on the research on the refocusing strategy of Shun Xin agriculture,the following conclusions are drawn in this paper :(1)refocusing strategy can realize the effective allocation of resources.By implementing the refocusing strategy,enterprises have the opportunity to realize the transfer of resources,and enterprises can make more effective use of resources.(2)The effective implementation of refocusing strategy can improve the enterprise value.Shun Xin Agriculture has implemented the refocusing strategy in recent years,and the overall financial performance has been improved and the enterprise value has been positively improved.(3)The rationality of refocusing strategic measures is extremely important to the strategic effect.The significance and innovation of this paper lies in that it is different from the empirical study on the motivation or financial effect of refocusing in previous studies.Instead,it analyzes the impact of refocusing strategy on enterprise value of Shun Xin agriculture from the perspective of optimal allocation of resources.It is hoped that through the analysis of the process of a series of measures to implement the refocusing strategy of Shun Xin agriculture,the analysis of rationality,the analysis of the path of resource allocation and the analysis of the value impact,it will provide reference value for the subsequent enterprises that want to apply the refocusing strategy,especially the state-owned enterprises focusing on the reform of the main industry.