A Study On The Influence Of Food Enterprise Diversification On Enterprise Performance

With the rapid development of economy and the continuous growth of enterprises,many enterprises attempt to achieve the diversification strategy through the integration of internal resources and external expansion,hoping to seek new profit points through diversification,so as to pursue the rapid growth of profits.At present,there are a lot of literatures on diversification research,but they are mainly empirical studies based on a certain industry,and there are few specific case studies on the food industry.As a big food consumer in China,the development of food industry enterprises is closely related to people’s life.Based on this,this paper chooses Qiaqia Food Co.,Ltd,one of the representative enterprises in the leisure food industry,as the research object,explores its diversification motivation and performance,and evaluates whether its diversification events bring positive impact to the enterprise.This paper adopts the analysis method of “motivation-event-impact” to explore whether the implementation of diversified specific events of Qiaqia Food Co.,Ltd,is conducive to the realization of diversified goals based on the motivation of diversification,and evaluates the implementation effect of diversification based on the performance analysis of financial indicators.The following conclusions were drawn through the study: For the reasons of giving full play to the potential value of resources,avoiding more than one product type,establishing an effective internal market,and the desire of management to be bigger and stronger,Qiaqia Food Co.,Ltd,chose diversification.However,its diversification has not achieved its goal of diversification,and its promotion effect on enterprise performance is not obvious.The main reason for the failure of diversification lies in the large span of diversified products and the insufficient investment in research and development after the investment in new products,which makes the original resources and management experience of the enterprise difficult to be effectively applied in the new field.However,the development of online sales platform channel diversification has a significant role in promoting the profitability of enterprises,improve the competitiveness of enterprises.