A Research On Financial Risk Management Of VV Food&Beverage Under Diversification Strategy

The continuous deepening development of the market economy has made many professionally operated enterprises,when facing market competition intensifying,begin to choose diversification strategies to expand the market size,to diversify the risks of single market operations,and to stabilize overall development.Many companies in China have successfully used diversification strategies.However,many companies have blindly expanded in the process of diversification.VV were listed on the Shanghai Stock Exchange in 2000,starting a 19-year diversification process.However,in diversified industry investment,this soy milk powder company has begun to face increased financial risks and financial distress.This article first elaborates the research background and overall framework,and adopts literature research methods to document the three aspects of diversification strategy.Secondly,we carry out a case analysis of VV shares,summarize the motivations for the implementation of its diversification strategy,sort out the development history of the diversification strategy,and measure the degree of diversification,and then analyze the three aspects of financing risk,investment capacity,and operational risk.The quantitative evaluation of financial risks was combined with the analytic hierarchy process and the efficacy coefficient method.Finally,the shortcomings of the financial risk management of VV under the diversification strategy and corresponding measures were proposed,and corresponding measures.The conclusion drawn is that after VV's diversified transformation,financial risks have continued to rise,especially in terms of financing risks and investment risks,and it has fallen into financial distress.This article believes that VV's financial risk management has three problems: early warning ability,identification and evaluation deviation,and single response measures.The suggestions for its financial risk management mainly include the improvement of risk system construction,risk appetite and diversified environment Considerations and optimization of financial risk management measures.This article can play a role in the case study of diversification and financial risk,and help strengthen VV's attention to financial risk.I hope that the research will help other companies to reduce financial risks and successfully implement diversification strategies.