A Case Study On The Selection Of Diversified Development Paths Of HG Company

With the implementation of important laws and regulations in the field of ecological and environmental protection such as China’s "Water Ten Articles" and "Soil Ten Articles",my country has paid more and more attention to ecological environmental protection,and the development of the environmental protection industry has also ushered in many powerful participants.HG Company is one of them.After the establishment of HG Company,it did not carry out deep cultivation in a certain environmental protection segment like traditional environmental protection enterprises,but quickly carried out enterprise development strategies such as horizontal integration and diversification.By means of new mergers and acquisitions and equity acquisitions,a cultural and creative company,an agricultural development company,a biomass power generation company,an integrated urban and rural sanitation company,a renewable energy recovery and smelting company,a soil pollution control company,and an environmental testing company have been established,and have been established.In 2019,a breakthrough was made in the integration of urban and rural sanitation and biomass power generation.This breakthrough allowed HG to develop rapidly and become one of the leaders in the environmental protection industry in Jiangxi Province.However,as more and more industries are diversified and developed by HG Company,more and more branches and subsidiaries are established.From 2020 to 2021,HG Company’s development strategy will be under greater pressure from capital and management.The cultural and creative industry failed to make a breakthrough,the various projects of the agricultural development company made no progress,the soil pollution control company pressed the pause button because of the partner,and the renewable energy recovery and smelting company suffered a large loss due to poor integration of mergers and acquisitions.Many problems,such as the limited market capacity in the field of environmental protection testing and limited expansion,have brought difficulties to the development of HG.The choice of strategic path of HG Company faces problems such as inadequate integration of mergers and acquisitions,entry barriers of unfamiliar industries,management level dragging down the company’s overall performance,project failure to achieve expected goals,"insider control" and major shareholders’ "tunnel digging".This thesis analyzes the situation of each development stage of HG Company,grasps the key factors affecting the success of HG Company’s strategy,conducts PEST analysis on HG Company’s internal and external environment during its initial establishment,conducts SWOT analysis on HG Company’s own development,and analyzes HG Company’s products.The Boston model analysis was carried out,and the "insider control","tunnel excavation" and the influencing factors of corporate mergers and acquisitions involved in HG company were studied.On the basis of the above analysis and research,we believe that through the integration of product lines and appropriate shrinkage of product lines,the problems of improper decision-making and expensive purchases in company’s M&A strategy can be solved;Unified platform management can promote the solution of corporate integration in HG Company’s diversification strategy;through talent cultivation and integration of M&A resources,cultural identity issues arising from HG Company’s M&A can be effectively eliminated.Multiple measures were jointly implemented to construct a solution to the problem of HG Company’s strategic development path,and provide useful assistance for the subsequent development of HG.The conclusions drawn in this thesis hope to provide some enlightenment and reference for the same type of enterprises in the selection of diversified development paths.