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Research On Gree’s Business Risk And Management Based On Diversification Strategy

Posted on:2023-02-08Degree:MasterType:Thesis
Country:ChinaCandidate:H NingFull Text:PDF
GTID:2532307094991949Subject:Accounting
Abstract/Summary:
With the development of society and economy,the competition in each industry is very fierce.In order to make enterprises stand out in the competition,many enterprises choose diversified development.Especially for the manufacturing industry,the transformation of enterprises is more difficult.Many products in the household appliance industry have reached the ceiling board,which greatly breaks the existing pattern,How to occupy the market share in this environment,continuously attract new consumers and stabilize old customers has become a constant problem for all household appliance enterprises.China’s entire household electrical appliance industry is now gradually moving towards maturity.Compared with other products,the household electrical appliance industry is slightly different.The viability and life cycle of household electrical appliances are relatively long.Therefore,even if it is in the later stage of maturity,it still needs a long period of development to enter the recession.After 30 years of development,Gree Electric has a good domestic market share in the field of air conditioning and a certain market abroad,but other fields,especially small household appliances and emerging intelligent equipment business,still lack certain competitiveness compared with air conditioning.Gree has never been involved in automobile,mobile phone and other industries before,and faces various problems in technology and market.By using the method of case study,this paper reviews different events since the implementation of Gree’s diversification strategy,arranges various data and historical documents of Gree’s diversification strategy implementation,identifies possible business risks in the process of diversification,and uses fuzzy comprehensive evaluation method and analytic hierarchy process,Combining qualitative analysis and quantitative analysis,this paper evaluates the possible risks in the process of Gree’s diversification strategy and analyzes its influencing factors.Through the analysis of the results,the following conclusions are drawn:firstly,the influence degree of business risk under Gree’s diversification strategy is medium;Secondly,the main sources of risk are industry trial and error risk and organizational synergy risk.Gree should focus on strengthening risk control in these two aspects.In addition,this paper puts forward the following enlightenment,hoping to give some experience to other manufacturing industries that want to implement or are implementing the diversification strategy,which can reduce some business risks as much as possible in the future development process and help enterprises successfully complete the diversification Transformation:enterprises should choose their own business model in the development process and appropriately diversify according to their own situation,Pay attention to the integration of industries after diversification and the construction of brands in different fields.
Keywords/Search Tags:Diversification strategy, business risk, risk management, fuzzy comprehensive evaluation
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