Research On The Motivation And Effect Of Beijing Pathfinder's Diversified Operatio

With the deepening of global economic integration,great changes have taken place in both internal and external market environments.The intensification of the industry competition makes the business operation become more and more difficult.Therefore,in order to avoid the risk intensification of specialized operation,some enterprises chose to diversify.However,whether diversification can bring positive impact on enterprise performance,scholars in the industry have different views,which leads to an increasingly heated discussion at the same time.This paper selects TOREAD,a representative enterprise of the domestic outdoor industry in China,as the case company,hoping to explore the effect of its diversification through the analysis of specific cases.Originated abroad,outdoor products industry has been fully developed in Europe and the United States.China brought in outdoor sports in the late 20 th century,after more than 20 years of development,the industry faces both opportunities as well as great challenges.As the representative enterprise of China’s outdoor products industry,TOREAD takes the lead in diversified layout.What drives the enterprise to implement the strategy;What are the results of implementation;What measures should be taken to improve the operation ability and profitability of enterprises in the future,these all needed to be analyzed and discussed.Taking the research on diversification by scholars at home and abroad as the theoretical basis,this paper explores the reasons why TOREAD chooses diversification by combing through its diversified operation process.Then,evaluate the implementation effect according to the market reflection,financial performance and diversification motivation of TOREAD’s diversification,discover the existent problems,analyze the reasons behind them,and puts forward relevant suggestions based on them.Hoping to provide useful references for enterprises under similar background according to the results of the case analysis at last.According to the findings of the research,TOREAD’s diversification does not work well.Based on this,this paper puts forward the following suggestions: enterprises should seize expansion opportunity properly,prevent the risk of goodwill impairment,maintain the stability of management,strengthen the core competitiveness of the major business and choose diversified industries carefully.In addition,according to the problems arising from the diversified operation of the case company,the following enlightenment can be drawn: enterprises should attach importance to the cultivation of core competitiveness when carrying out diversified operations,expand with a view to long-term development,and handle various work well in diversified acquisition,so as to provide references for other enterprises in carrying out diversified operation.