Research On Performance Evaluation Of Household Appliance Enterprises With Related Diversification Strategy

With the disappearance of policy dividend,the changing economic environment and the intensification of industry competition,household appliance enterprises to longterm development,stable increase of market share,it depends on corporate strategy.Single business development mode has insufficient against home appliance enterprises facing the severe operating environment,although not related diversification development model can disperse risks,but it can also lead to the enterprise internal coordination costs increase,the enterprise cannot regulate the many departments,management difficulty and the degree of information asymmetry.At the same time,the related diversified business model has the characteristics of synergistic effect,scope economy effect and unabsorbed redundancy effect.However,the effect of the implementation of relevant diversification strategy on enterprise performance has not been determined.At present,enterprises pay much attention to the implementation effect of relevant diversification strategies,so it is of great significance to evaluate the implementation effect of relevant diversification strategies.In this paper,Midea Group is selected as the case study object,using the balanced scorecard as a management tool,starting from four dimensions,the performance of Midea Group after the implementation of relevant diversification strategy is studied.First of all,the paper defines the correlation diversification,collates the performance effect of correlation diversification and balanced scorecard theory.Secondly,it introduces the general situation of the development of home appliance industry,analyzes the basis and motivation of implementing the related diversification strategy of home appliance enterprises.Thirdly,it briefly introduces the general situation of Midea Group,analyzes the way of Midea Group’s implementation of relatedness diversification strategy,and evaluates the degree of relatedness diversification of Midea Group,and then enters the part of performance evaluation,selecting indicators from four dimensions to evaluate performance;Finally,summed up the experience of Midea group,as well as the enlightenment to home appliance enterprises.This paper draws the following conclusions: After Midea Group implements related diversification strategy,it has achieved good results in other dimensions except the decline of inventory turnover capacity.Based on this conclusion,the experience of Midea Group is summarized and some suggestions are put forward.