The Impact Of Enterprise Diversification On Enterprise A's Performance

General Secretary Xi Jinping said in the report of the 19 th National Congress of the CPC that China's economy has entered a new period of transition from a high-speed growth stage to a high-quality development stage.Compared with the previous double-digit growth rate,China's macroeconomic growth rate has fallen significantly.China's GDP growth rate was 10.6% in 2010,and fell below 10% in 2011.From 2010 to2018,China's economic growth rate continued to decline.In 2015,China's GDP growth rate was only 6.9%.This is the first time that China's GDP growth rate has fallen below 7%.Since then,China's economic growth rate has remained below 7%.Against the background of the slowdown of macroeconomic development,China's enterprises face greater risks in diversified operations.A Group's implementation of a diversified business strategy has played an important role in the Group ' s expansion,and its diversified business is highly representative.Therefore,this article chooses the case of Group A,and focuses on analyzing the problems faced by Group A in diversified operations,and puts forward corresponding countermeasures,which has practical reference value for A group to optimize its diversified business strategy,which is conducive to the better development of Group A.Diversified business.The research content of this research includes six chapters: the first chapter is the introduction,which mainly explains the background of the research of this article;the second chapter is the theoretical basis and literature review.This paper introduces the background of the current economic new normal,the theory of diversified management,the theory of corporate performance,the theory of the relationship between diversified management and corporate performance.And through domestic and foreign literature to understand the impact of the degree of diversification on corporate operations;Chapter III is an empirical analysis of the impact of diversification on corporate performance.Through data source acquisition and sample selection,data sources are provided for the empirical analysis of this article.The variables are selected and the model is constructed,and the corresponding empirical results are obtained through descriptive statistical analysis.The fourth chapter is the impact of Group A's diversified operations on performance.The case of Group A's diversified business is introduced and analyzed through case studies.Chapter 5 is a case analysis of domestic enterprises' diversified business.Based on the case studies of domestic representative Gree Electric Appliances and New Hope Diversity Management,a case study is made to summarize the experiencethat can be used for reference.Chapter 6,the recommendations of Group A diversification management.Aiming at the problems existing in the diversified operation of Group A,based on the experience of diversified operations of other enterprises,it puts forward suggestions.This article mainly uses case study method and empirical analysis method to carry out research,specifically taking Group A as an example to study the current status of the group's diversified operations.The study draws the following two conclusions: First,since the implementation of diversified business strategy by Group A,The number of industries and businesses involved in the Group has increased significantly,but these industries have not brought expected returns to Group A.In contrast,the profitability of Group A has declined significantly,which indicates that Group A's implementation of a diversified business strategy has not improved the performance of the group.Secondly,Group A's diversified operations are mainly facing diversified operations which exacerbate operating risks and are difficult to integrate and allocate internal resources The problem.Drawing on the basic business experience of domestic companies' diversified operating experience,this article puts forward suggestions for diversified operations of Group A: clarify the focus of business operations;develop related diversified operations to enhance synergies;strengthen internal financial integration;and improve the internal capital market.